Even in the falling market, this stock of less than Rs 10 showed its strength, as soon as this news came, the stock became a rocket!

When there is selling pressure all around in the market and the red mark is dominant, then the rocketing of a penny stock definitely attracts the attention of common investors. On Wednesday, July 8, shares of PC Jeweler did something similar. Despite huge fluctuations in the stock market, this share priced at less than ₹ 10 made a huge jump of about 6% in early trade. There is a big and positive news behind this rise. Actually, the company has paid off all the outstanding loans of its two consortium banks. This step taken towards debt relief is returning the confidence of investors, due to which this spectacular rise in share prices has been seen.

Big goal of debt relief

PC Jeweler has said in the official information given to the stock exchanges that under the settlement agreement dated September 30, 2024, the entire dues of two banks out of 14 consortium banks have been successfully paid. This is a big milestone in the story of the company’s turnaround i.e. its brilliant comeback in the market. The management has made it clear that their aim is to become completely debt-free in this current quarter (July-September).

Great growth shown in the first quarter

If we look at the recent financial performance of the company, the results for the first quarter (April-June) of the financial year 2027 (FY27) have been quite encouraging. During this period, a strong increase of 21% has been recorded in the consolidated revenue of PC Jeweler on annual basis. On one hand, the company’s earnings are increasing, while on the other hand, the debt burden is decreasing rapidly. According to the report, the company has reduced its total outstanding bank loans by more than 90%. Talking about the June quarter only, there has been an additional reduction of 24% in the outstanding loans to be repaid to banks under the Joint Settlement Agreement.

Latest share status

Talking about Wednesday’s trading session, PC Jeweler shares opened with a gap-up on BSE and were seen trading at a strength of around 3.5%. It touched a low of ₹9.47 during the day’s trading, but due to buying pressure it reached a high of ₹10.01. According to market experts, this stock has been witnessing huge fluctuations for the last few sessions and it is swinging in a limited range of ₹ 9 to ₹ 11.

Will the stock touch the ₹15 mark?

Rajesh Bhosale, Equity Technical and Derivatives Analyst, Angel One has given detailed information on the technical condition of this stock. He says that the stock is getting strong support from the short-term moving average at the level of ₹9. At the same time, the 200-day simple moving average (DSMA) around ₹11 is acting as a major resistance. There has been an increase in trading volume (number of shares bought and sold) in recent times, but the real rise will come only after crossing ₹11. If the share of PC Jeweler manages to survive by crossing the level of ₹ 11, then it can reach up to ₹ 15 in the coming time.