Stocks to buy today: PC Jeweller's share price extended its bull run for the third straight session, when the trading activity resumed on Friday. PC Jewellers shares opened higher at ₹14.21 and touched an intraday high of ₹14.72 within a few minutes of the Opening Bell, logging an intraday gain of more than 6%. The PC Jeweller shares have remained a cash cow for its shareholders throughout the year. In YTD terms, PC Jeweller's share price has risen from around ₹9.55 to ₹14.48 per share, delivering a return of around 55%.
According to stock market experts, the jeweller brand has been reducing its debt regularly and has become debt-free with respect to the consortium of 14 PSU banks. This has been driving the PC Jeweller share price for a long time, as PC Jeweller has repaid its debt in a calibrated manner. They said the bull run in the PC Jeweller share price may continue, and it may go up to ₹18, once it breaks above ₹15 on a closing basis.
Highlighting the reason for the continuous rally in PC Jeweller shares, Avinash Gorakshkar, Founder of Avinash Mentor Research, said, “The first and foremost reason for the rally in the PC Jeweller share price is its continuous debt repayment. The company has recently informed the Indian exchanges regarding its debt to the consortium of 14 banks that all the mortgaged assets of the Company, the personal and corporate guarantors, have been released and the original title deeds have been handed over to the relevant title holders.”
Expecting the rally in PC Jeweller shares to continue further, Sumeet Bagadia, Executive Director at Choice Broking, said, “PC Jeweller share price has strong support placed at ₹12, and it is looking positive on the technical chart. On a decisive break above ₹15, the jewellery stock shows potential to touch ₹18 apiece. So, existing PC Jeweller shareholders are advised to hold the scrip, maintaining a stop-loss at ₹12 for the upside target of ₹18. The upper side target may become possible in two weeks to one month.”
On suggestion to the fresh investors, Bagadia said, “Fresh investors can maintain a buy-on-dips strategy, adding more PC Jeweller shares on every big dip of 5% or more. However, they must maintain a strict stop-loss at ₹12 for the one-month target of ₹18.”