Buy PC Jeweller; target of Rs 480: Emkay

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26 Aug, 2025 12:21

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Emkay research report on PC JewellerRevenue below estimates, but PAT in line. Revenue at 14% yoy; EBITDA margin decline 50bps yoy to 10.7% due to absence of gold premium. Other income & lower interest led 19% PAT growth to 825mnDomestic growth at 21% yoy led by healthy 44% growth in diamond jewellery. Stable gold prices led so some pick-up in demand, leading to 5% SSG. Store expansion, festive & wedding demand & new products will drive 20% growth in domestic revenuesAbsence of gold premium & store addition costs in the quarter impacted EBITDA margin. Hereon, margin expansion hinges on uptick in demand and increasing diamond mix.Ample growth drivers like store expansion, franchisee model, new products and online foray, but demand uptick is essential. Maintain BUY with TP of Rs 480/share (SoTP)This quarter saw some signs of demand uptick due to stable gold prices. We expect i) store expansion (+15 stores for FY16), ii) franchise model, iii) innovation via Flexia and iv) online venture through WearYouShine.com and co-branding to drive revenue growth of 20% CAGR. We maintain Buy with revised SoTP target price of Rs 480/shareFor all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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