Get App
Last Updated : Jan 23, 2018 12:10 PM IST | Source:

Buy PC Jeweller; target of Rs 645: Motilal Oswal

Motilal Oswal is bullish on PC Jeweller has recommended buy rating on the stock with a target price of Rs 645 in its research report dated January 12, 2018.

Broker Research @moneycontrolcom
  • bselive
  • nselive
Todays L/H

Motilal Oswal's research report on PC Jeweller

We recently met the management of PC Jeweller (PCJL). Our key takeaways:  PCJL remains confident of 25-30% CAGR in the domestic jewelry retail business over the next five years.  The franchisee model is working well so far; going forward, franchisee stores will be ~80% of incremental annual store openings.  PCJL has massive opportunity to grow at the cost of unorganized players. Though competition from organized players will increase as the salience of the organized segment goes up 3-4 years down the line, the company believes its strengths on design (craft) and low cost manufacturing will serve it well in the long term.

We have a BUY rating on the stock, with a target price of INR645, valuing the company at 29x December 2018E EPS, 40% discount to Titan. We believe that the valuation gap vis-à-vis Titan will shrink further, once PCJL demonstrates its ability to maintain its revenue and earnings trajectory.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Exclusive offer: Use code "BUDGET2020" and get Moneycontrol Pro's Subscription for as little as Rs 333/- for the first year.

First Published on Jan 12, 2018 06:31 pm
Follow us on