Here's Why We Think PC Jeweller (NSE:PCJEWELLER) Might Deserve Your Attention Today

Simply Wall St · 3d ago

The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even companies that have no revenue, no profit, and a record of falling short, can manage to find investors. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses. A loss-making company is yet to prove itself with profit, and eventually the inflow of external capital may dry up.

So if this idea of high risk and high reward doesn't suit, you might be more interested in profitable, growing companies, like PC Jeweller (NSE:PCJEWELLER). While profit isn't the sole metric that should be considered when investing, it's worth recognising businesses that can consistently produce it.

PC Jeweller's Improving Profits

Strong earnings per share (EPS) results are an indicator of a company achieving solid profits, which investors look upon favourably and so the share price tends to reflect great EPS performance. So for many budding investors, improving EPS is considered a good sign. It is awe-striking that PC Jeweller's EPS went from ₹0.033 to ₹0.84 in just one year. Even though that growth rate may not be repeated, that looks like a breakout improvement. Could this be a sign that the business has reached an inflection point?

One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. The music to the ears of PC Jeweller shareholders is that EBIT margins have grown from 4.7% to 19% in the last 12 months and revenues are on an upwards trend as well. Both of which are great metrics to check off for potential growth.

The chart below shows how the company's bottom and top lines have progressed over time. For finer detail, click on the image.

earnings-and-revenue-history
NSEI:PCJEWELLER Earnings and Revenue History December 11th 2025

Check out our latest analysis for PC Jeweller

While it's always good to see growing profits, you should always remember that a weak balance sheet could come back to bite. So check PC Jeweller's balance sheet strength, before getting too excited.

Are PC Jeweller Insiders Aligned With All Shareholders?

It should give investors a sense of security owning shares in a company if insiders also own shares, creating a close alignment their interests. So it is good to see that PC Jeweller insiders have a significant amount of capital invested in the stock. Notably, they have an enviable stake in the company, worth ₹26b. This totals to 33% of shares in the company. Enough to lead management's decision making process down a path that brings the most benefit to shareholders. Very encouraging.

Does PC Jeweller Deserve A Spot On Your Watchlist?

PC Jeweller's earnings per share have been soaring, with growth rates sky high. That EPS growth certainly is attention grabbing, and the large insider ownership only serves to further stoke our interest. The hope is, of course, that the strong growth marks a fundamental improvement in the business economics. Based on the sum of its parts, we definitely think its worth watching PC Jeweller very closely. Still, you should learn about the 1 warning sign we've spotted with PC Jeweller.

Although PC Jeweller certainly looks good, it may appeal to more investors if insiders were buying up shares. If you like to see companies with more skin in the game, then check out this handpicked selection of Indian companies that not only boast of strong growth but have strong insider backing.

Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.