Multibagger penny stock: Defying the tepid stock market mood, jewellery stock PC Jeweller has delivered almost 8% returns so far in 2026, and is outperforming Sensex’s 3.16% decline in the same period.
Amid a volatile market, the multibagger penny stock traded rangebound. That said, PC Jeweller stock has delivered a whopping 235% returns in the last five years, which coincides with its effort to improve the financial performance and reduce debt, and a sharp surge in gold prices.
What’s driving PC Jewellers stock?
According to market experts, the move in PC Jeweller reflects a recovery trade rather than sectoral momentum.
Harshal Dasani, Business Head at INVasset PMS, believes that over the past year, the company has focused on balance-sheet repair, debt rationalisation and operational clean-up after a prolonged stress phase.
PC Jeweller reported robust growth in its business update for the third quarter of FY26. The company, in its investor presentation, also expressed confidence about becoming debt-free in the near term, which further boosted investor buying interest in the stock.
The company’s profit after tax (PAT) rose to ₹187 crore in Q3FY26 from ₹146 crore in Q3FY25, marking a growth of 28%. It also delivered a strong operating performance during the quarter, supported by steady consumer demand during the festive and wedding season. Standalone revenue grew 37% YoY to ₹875 crore in Q3FY26, compared with ₹639 crore in Q3FY25, highlighting sustained momentum in demand and effective sales execution.
Dasani further noted that another key factor behind the surge in the stock price is rising gold prices, which supported the jewellery demand sentimentally, even though margins remain sensitive to working-capital cycles. Gold prices rose 70% last year and remain 20% up YTD.
“The financial turnaround is encouraging, particularly if revenue traction and margin stability are sustained for multiple quarters. However, jewellery remains a working-capital-intensive business with high inventory and gold price risks,” Dasani said.
Is it the right time to buy PC Jeweller stock?
Dasani further added that investors should look for consistency in cash flows, debt reduction progress and auditor comfort before taking exposure.
“This is still a recovery story, not yet a structurally compounding one. Allocation, if any, should be measured and based on risk appetite rather than chasing short-term price strength,” he said.
Meanwhile, commenting on multibagger penny stock’s technical outlook, Anshul Jain, Head of Research at Lakshmishree, highlighted that PC Jeweller stock on the monthly chart has successfully retested its major breakout level near 10.5 and has spent the last four months consolidating within that reclaimed support band.
Jain believes that this behaviour reflects acceptance rather than failure. Given the timeframe, a four to six candle consolidation translates into four to six months of sideways price action, which appears likely before the next directional expansion.
“Volumes through the base have dried up significantly, signalling supply exhaustion rather than distribution. The structure now resembles a large accumulation base forming above the prior breakout point. If this compression persists with low volatility and stable support, it can act as a strong launchpad for the next leg higher. Risk remains defined near the 10.5 zone, while sustained base building strengthens the longer-term bullish thesis,” Jain added.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
