CARE assigns PC Jeweller a fundamental grade of 4/5

Reports note that PC Jeweller, a leading entity in jewellery manufacturing and retail sector received a fundamental grade of 4/5 from CARE Ratings, which translates as ‘Very Good Fundamentals’.

The company operates 47 showrooms across 38 cities and 16 states. The CARE ratings were based on elements including PC Jeweller’s strong brand recall in North Indian markets, its sound capital structure, profits improving at a steady pace, and ease in RBI regulations reports add.

Also, the rating agency notes PC Jeweller’s growth drivers would be volume and selling jewellery through new formats and in new markets. Also, its diamond unit revenues are expected to grow from 25 percent of the total revenue in FY14 to around 30-35% in FY15E-FY17E.

Also, CARE has assigned an equity valuation grade of 3/5, based on its valuation of company shares at Rs.251.9 per share, which is 3.06 percent below the Current Market Price (CMP) of Rs.259.9 per share, reports say.