Authors: TheIndianSubcontinent News AgencyNEW DELHI: PC Jeweller (PCJ) sank over 18 per cent on Wednesday to take its losing spell to the eighth trading session.
The board's decision to consider a share buyback proposal has failed to lift sentiment at the counter.
Clarifications by promoters suggesting no change in the management control and growth strategy have failed to move investors.The stock has been in decline as promoter Padam Chand Gupta gifted some of his shares to family members through off-market transactions.
The company is making requisite disclosures in this regard from time to time, PCJ said in a recent statement.The stock has lost 60 per cent of its market value in last one month.
On Wednesday, it fell 18.2 per cent to hit a low of Rs 118.65 on the BSE.However, there are fears about more such deals in future.
Gupta held 26 per cent stake in the company at the end of the March quarter.
At Monday's close, the stock was trading 74 per cent below consensus target price of Rs 558.25, Bloomberg data showed.Of the seven analysts tracking the stock, six have buy on PC Jeweller while one analyst has a sell rating.
FPIs held 31.22 per cent stake in the jewellery maker as of March 31, their highest ever in the firm, shareholding data suggested.
Earlier this year, the stock saw panic selling by investors amid speculations that its promoters might have held back information on a business relationship with e-governance service provider Vakrangee, which was reportedly being probed by market regulator Sebi for possible stock manipulation.The Rs 13,000 crore scam involving businessman Nirav Modi and Mehul Choksi-led Gitanjali Group too proved to be a major headwind for Indias jewellery sector as domestic lenders have since become cautious in lending to these high cash-flow businesses.
But PCJ does not have any international transactions in diamonds.
It procures its diamonds from local markets on cash basis.