PC Jewellers


(Utkarsh Pandey) #327

(manivannan.g) #328

Apart from this channel, nobody else reported this news. They are claiming that “PC Jewellers being investigated for dealings with politicians”. Sounds funny to me :joy: What i observed is they published this at 10:01am, it’s been more than an hour, if its for real, I’m sure, most of the business channels would’ve published this.

EDIT: Balram Garg just spoke to zee business. (Below is just image, it’s live in zee biz)

Hope media houses behaves sensibly and responsibly.


(Rohit) #329

Even if we consider some corporate governance issues , what could be the worst case scenario ?

Can the company shut down in few months ?
Are all the jewelry stores fake (including new ones)
Where can the company be in next 5 years ?
Unless its a too big scam like Nirav modi and Gitanjali , can this company be shutdown ?

They don’t have much debt on balance sheet also like Gitanjali. Stock has corrected more than 80%. It seems v cheap to me. But looking for above questions answers before taking risk again.

Current market cap @price 100 - approx 4000 crores
FY 17 consolidated Revenue - 8474 crores ( market cap to sales <.5)
Current Consolidated EPS - 14.57 - trading at PE 7
PAT annual growth rate last 5 years - approx 17%
Interest coverage ratio > 3
Debt to equity - approx .2


(Radiozammy) #332

There was a block deal at 10:10 for 16 lakh shares @109. May be that is what is helping stabilize/ help price gain along with the confirmation that Balaram garg wasn’t arrested.

Disc: Invested.
PS: Watching with suspense while munching popcorn, beats any thriller.


(manivannan.g) #333

Nah! the block deals are always there, it’s the trading operators who does that. At the moment the market is cheering for Balram garg appeared in interview amidst the CBI hoax.


(MHS) #334

We won’t learn from History- do we??

Every year new investors come to the market and think this time it’s different and it’s cheap because its fallen 80% how much it can go more from here …then it falls 80% from there…

First Denial…then finding reasons defending the company… then more smoke comes out…then trying to find facts…then story becomes ugly…then acceptance…booking loss… and then…realization and lesson learned … then move on…

As they famously say History doesn’t repeat itself…It rhymes… isn’t it…


(Rohit) #335

They have given the disclosure too on BSE , regarding fake news of arrest and CBI inquiry.


(manivannan.g) #336

Hi, Would you help me to understand the smoke which you see, apart from the vakrangee & gift saga?


(Rohit) #337

Yeah , I agree with you but even scrap has some value. Isn’t it value investing about finding value when stocks are going down and blood on street. Their would be some point where their could be margin of safety.

How the successful investors picks stocks when no one touches them. Just trying to follow their path. Though not easy and fingers can be burnt but learning is great.

Few years back I bought MCX at price of 300 when it fell down from 1600 , considering the monopoly business and debt free balance sheet. and that risk paid off. PC Jwellary business is not monopoly but indian market size is huge and debt is also less.


(Rohit) #338

(Radiozammy) #339

I agree the brightest of the minds can/ do make mistakes and their actions solely shouldn’t dictate ours. Having said that, i do like to watch out for such events as they then trigger me to research more on my part/ understand reasoning for 2 reasons- 1) there actions will dictate market reaction in short term. 2) They have more resources than me and i give them the benefit of doubt of having done their due diligence specially in scenarios where they might be booking heavy losses. Again, i want to re-iterate this for any new investors, their actions SOLELY should NOT dictate your decisions, do your homework.

Disc: Invested


(MHS) #340

@manivannan.g
As a retail investor i am the last one to know, if at all there is smoke, but by that time damage is done (In this case damage is already done), but with experience in similar stories/situations recent example Vakarange and last year or so Tree House Education - Check the price chart from Peak - we will learn the Hard way and pay tuition fees.

But the screen is showing - its not rocket science - price drop - there is something seriously wrong here, a business wont lose 80% of value in a couple of months without reasons, thats enough for any retail investor here just to get out.

PS: Nothing against PCJ, No investment here, not interested, wont even touch with a barge pole.


(yudiagg) #341

I have been watching it since long. I find that the deliveries are hardly
25% - Source BSE. Therefore it appears to be case of aggressive short
selling.Therefore, after quite a lot of deliberation I have made a good
investment today. Not much downward risk from about Rs 100- 110. If
financials are genuine and good, every thing should become normal with
time.The price movement today appears to give an indication of bottoming
out.


(Kumar Saurabh) #342

Download last 1 year of bulk n block deal data. U ll see these guys doing intra day regularly . Specially in low grade volatile names if i recall. Shastra n way to wealth i ve seen frequently while going through periodic bulk block tracking exercise


(LTInvestor) #343

Fidelity sold another 1.4cr shares on 30th. Now left 1.3cr shares which they must have sold yesterday. That explains the delivery volumes.


(Rohit) #344

So if we assume they have sold all thier holdings today and yesterday and no other big investors were selling , we can see some support at current prices (assuming their is no further sell off from any other big investor). ? what do you say ?


(dr ravindra gupta) #347

This is the recent video of Mr Balram Garg Zee Business . Everything is fine in the company. no fundamental change reassurance to investors again board meeting May prepond. In Buy back offer no promoter will take part…


(phreak) #348

Worth noting what PC Jewellers meant to Fidelity Emerging Markets fund.

When they first made the entry

PC Jewellers was among some serious names like Alibaba, Baidu, Naspers, HDFC, Reliance!

And contributed a fair bit to fund’s performance

This is quite a bitter pill for Fidelity and I am curious to see what rationale they provide for selling in their performance report. It definitely cannot be good for Indian equities, considering they had increased their weightage on India quite recently and have burnt their fingers in the process.


(manivannan.g) #349

Did you refer their quarterly review report ? They said vakrangee relationship was led to the crash.

image

https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/SHDOCS/FEMKX/hosts/sh_comm_qfr.000322.RETAIL_pdf.pdf

Looks like they found something which we couldn’t or may be the corporate governance issue didn’t comfort them ? I think they’ll disclose the reason only in the current quarter report which is at the month of July, but by that time it’ll be done and dusted eitherwise.


(rajeevns) #350

Looks like the fund managers exit strategy is not right, they could have disposed in small increments so that market would have absorbed them naturally. Advantage, they would have got a better price. The panic selling doesn’t help anyone and the price they got would be definitely less.

Rajeev