Hey Guys, any idea what these folks are trying to do ? buying and selling at mere 20-70 paise gains. Not able to understand though.
Does someone know why the company has Rs275cr of interest expense when the debt is just Rs.631cr. Is it interest on payables which are Rs. 3000cr?
Even a 50 paise gain can make them a profit of 20-30 lakhs in seconds , considering huge quantity…seems they are minting money like anything…stock down 22% today now
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These deals, to my limited knowledge, are increasing the volumes of trade while share price is going down.Therefore it scares the retailing investors who follows selling.
Having said above, PCJ is a very peculiar case which is expanding network as per media reports, so far has shown good nos in every aspect, every anchor on CNBC used to recommend buying till few months back and I used to miss the opportunity in this as well as vakrangee.
Disc:,not invested
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When I am placing a intraday trade in my system its not allowing me to do and my all intraday trades are getting rejected for PC Jwellars (only delivary is allowed). Than how these guys are able to trade intraday.
Is it broker specific. I have SBI CAPSEC trading and dmat account.
From my experience in the market I have seen that anything which is too good to be true normally will show up as redflags in people’s radar. It takes at least 2-3 months before these red flags become known to the general public and then the stock tanks.
In the case of PC Jewelers that was its association with Vakarangee , though denied by them , there cannot be smoke without fire.
The debt schedule as per annual report is:
Cash credit facilities - Rs. 66.21cr (11%)
Packing credit facilities - Rs. 186.58cr (8%)
Post shipment credit - Rs. 126.96cr (8%)
Demand loan - Rs. 60cr (10.95%)
CP - Rs. 194cr (8.5%)
So total interest as per above should be about Rs.65cr to banks. But total interest expense paid as per cash flow statement is Rs270cr. So Rs. 215cr has been paid out to whom??
Looks like I should close my long future. Got bit protected by the put!
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I think those are done on 30th april when PC was there in the FNO…today it is ban for FNO…i think that large postion can only be taken in FNO trades…i think…not sure though
Thanks Atul ! this makes sense, these operators are creating panic in the market. Unlike vakrangee, the CPJ stores are for real. If we see the latest intimation regarding the new showroom. I’ve googeled the address, and to my surprise some google user has posted this picture way back in Dec-2017.
As per intimation the store will be opened on 08-April.
https://www.bseindia.com/xml-data/corpfiling/AttachHis/83fc7770-eb4a-4e63-95d3-a8eef3a157f9.pdf
But google user pic (was posted on 27-Dec):
But as per their FB page, it was opened as annotated.
ok , but are you guys able to put an intra day trade in PCJ. My broker SBI cap sec is not allowing me to put intra day trade since morning. Just wanted to know if its broker specific.
This is getting really interesting. If you paste “3-6-327/328, Doshi Chambers, Basheerbagh” on google you will find that it was Gitanjali Gems storeroom. Also, it is home to Doshi Gems and Jewellery. Looks like the store was always there and goes on changing franchisee.
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My understanding was that Vakrangee had already divested its stake in PCJ and sold off. Where can we see this data to confirm this ?
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Limited disclosure and clarification by the PCJ management on this whole “gifting” thing is heavily negative given circumstances. Is this a relative or not ? If so, what is their name ? Has this relative now sold off his/her stake ?
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In all the interviews i went through, management (CEO- balaram garg and CFO) all seem to indicate that ParamChand , the elder brother/partner is now 68 and not involved in day today operations, has gifted his share since it is his fortune and considering his age, it is common. Does this gentleman plan on gifting more ( assuming in all sincerity without exchanging cash, plans on spiltting his fortune between family) which will in turn bring down the promoter holding ? Balaram garg holds about 34% and rest is by ParamChand and together now they have about 58%. Another 8-10% gifting and promoter stake is below 50%. Lots of questions on which a more sincere and ethical management could have taken more initiative to squash rumors and get in front of the issue.
Disc: Invested
Stock down 27% today…dont know where it is going to stop
Rightly said. Most recent quarter interest expenses is Rs80Cr. Annualized will be Rs320cr. So at least another Rs2500 cr loan is shown elsewhere in the BS. Maybe a corporate guarantee or part of other liability.
In my opinion, the gifting officially has been done to a linear relative as transaction value is zero
If you consider the average PAT growth of the last 5 years then it comes to around 17% per year. And 5 years back the stock consolidate around 50 Rs for a long time. If you apply 17% CAGR on 50 Rs then we will get 110 Rs.
What I mean to say is, if there is no “Gitanjali-Gems-Type” issue with PCJ then 110 could be considered a “fair-value”.
But I would not buy PCJ at 110 on its way down, but rather on its way up.
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Bought today 0.25% of portfolio
@LTInvestor @SlownSteady They pay 3-3.5% on gold they lease from banks and others, which i think goes into interest cost. This is how they are insulated from inventory hits.
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