Published on March 3, 2014
PC Jewelers Jewelers For Generations
Group Members Harshad Panchal Sandeep Savla Aditya Sharma Sharad Nadgoundi Nikhil Malik
PC Jewelers An Introduction PC Jewelers started operations in April 2005 with one showroom at Karol Bagh Delhi. It is a first generation business promoted by two brothers- Sh Padam Chand Gupta and Sh Balram Garg. The company however, had a vision of expanding its presence in the retail segment . It has accordingly been opening showrooms at regular intervals and today has a strength of 41 stores spread over 33 cities. Mr. Balram Garg, Managing Director of the group can easily be called the goodwill ambassador of this group. A man of clear vision and strong decision, Mr. Garg’s approach in business rests on his belief that nothing is impossible. The most valued asset is their relationship with the clients, which has been built over years by giving certified quality, latest designs, transparency in dealings and best personalized customer service.
The company’s business model consists of opening large format, stand alone stores at high street locations. The company sells only hallmarked jewelry and certified diamond jewelry. This assurance on quality & purity along with transparent & customer friendly policies has enabled PCJ to become an established and trusted brand name in a short time span. The company is confident that its trust on diamond and other high margin jewelry along with customer oriented marketing initiatives would continue to help grow.
Tribhovandas Bhimji Zaveri An Introduction Their story begins in 1864, in a tin shed at Zaveri Bazar. Late Shri Bhimji Zaveri’s vision was to give India the jewelry it deserved, that of uncompromising quality and craftsmanship. This vision was furthered by his son, Late Shri Tribhovandas Bhimji Zaveri, who expanded the business by opening new showrooms. But it was his grandson, Late Shri Gopaldas Zaveri, who shook up the Indian market by offering customers a full value gold buy-back scheme. Under the able guidance of Mr. Shrikant Zaveri, TBZ successfully transformed into the modern and innovative jewelry maker it is today. Their path-breaking ways are also evident in retail. All their stores are staffed by highly trained personnel who ensure that every customer leaves a TBZ store completely satisfied.
Their presence in the Indian market has been marked by a number of firsts – the first to offer buy back guarantee on gold jewelry, the first to promote the concept of light weight jewelry and the first to offer certified solitaire diamonds. Thanks to these and many other instances of innovation and commitment to excellence, they are now one of India’s largest jewellery retailers.
Balance Sheet Comparison & Analysis
Balance Sheet (Rs In Cr.) Pc Jewelers March’13 Tribhovandas Bhimji Zaveri March’13 Capital & Liabilities Equity Share Capital Preference Share Capital Reserve & Surplus 179 0 66.67 0 1209.71 343.4 Loan Funds & Borrowings 0 0 Deposits 0 0 Other Liabilities & Provisions Total 1814.26 357.14 3203.07 767.21
Balance Sheet (Rs In Cr.) PC Jewelers March’13 Tribhovandas Bhimji Zaveri (March ‘13) Assets – Cash Balances With RBI 264.86 31.85 Investments 442.93 3.03 Gross Block 85.97 108.59 (-) Depreciation (Accumulated) 23.21 20.96 Net Block 62.76 87.62 Capital Work In Progress 1.04 1.64 Fixed Assets
Balance Sheet (Rs In Cr.) PC Jewelers Tribhovandas Bhimji Zaveri Other Assets 2928.46 1088.92 Total 3203.07 767.21 Contingent Liabilities 2.99 2.84 Book Value Of Unquoted Investment 0.05 3.03 Market Value Of Quoted Investment 443.9 0 Note:-
Ratio Analysis & Comparison -
Comparisons Of Financial Ratio’s Name Of Ratios PC Jewelers Tribhovandas Bhimji Zaveri Face value 10 10 Net Profit Ratio 7.19 5.10 Gross Profit Ratio 11.75 8.39
Name Of Ratio’s PC Jewelers Tribhovandas Bhimji Zaveri Earning Per Share 16.23 12.75 Price Earning Ratio 4.07 12.61
Stock Data (05-02-14) PC Jewelers Opening Price Closing Price Volume Previous Close Changes BSE NSE 71.50 74.00 75.80 75.65 31.82 259.74 74.00 74.15 2.43 2.02
Stock Data (05-02-14) Tribhovandas Bhimji Zaveri Opening Price Closing Price Volume Previous Close Changes BSE 127.55 129.25 20.35 130.20 -0.73 NSE 129.95 129.55 72.00 130.25 -0.54
PC Jewelers Shareholding Pattern Holder's Name No of Shares % Share Holding 125404500 70.02% 24328030 13.58% 12955249 7.23% 10888860 6.08% 5258207 2.94% 131484 0.07% ForeignNRI 80557 0.04% ForeignOthers 37909 0.02% FinancialInstitutions 15204 0.01% Promoters ForeignInstitutions OtherCompanies GeneralPublic NBanksMutualFunds Others
TBZ Shareholding Pattern Holder's Name No of Shares % Share Holding Promoters 49449775 74.13% ForeignInstitutions 10012389 15.01% GeneralPublic 3538116 5.3% OtherCompanies 3423599 5.13% Others 140185 0.21% ForeignNRI 133541 0.2% FinancialInstitutions 6033 0.01% NBanksMutualFunds 357 0%
Technical Analysis (3month & 1 year graph)
Technical analysis (3month & 1 year graph)
Dividend Summary & Comparison
PC Jewelers Announce ment Date Effecti ve Date Divide nd Type Divi dend (%) Remarks 20-01-14 30-0114 Interim 15.0 0 Rs.1.5000 per share(15%)Interim Dividend 20-05-13 06-0913 Final 10.0 0 Rs.1.0000 per share(10%)Dividend
For the year ending March 2013, PC Jeweller has declared an equity dividend of 10.00% amounting to Rs 1 per share. At the current share price of Rs 77.60 this results in a dividend yield of 1.29%. PC Jeweller had last declared a dividend of 10.00% for the year ending March 2013.
Tribhovandas Bhimji Zaveri Announce ment Date Effecti ve Date Divide nd Type Divi dend (%) Remarks 29-05-13 14-0813 Final 22.5 0 Rs.2.2500 per share(22.5%)Dividend 31-05-12 13-0912 Final 7.50 Rs.0.75 per share(7.5%)Dividend
For the year ending March 2013, Tribhovandas Bhimji Zaveri has declared an equity dividend of 22.50% amounting to Rs 2.25 per share. At the current share price of Rs 129.35 this results in a dividend yield of 1.74%. Tribhovandas Bhimji Zaveri had last declared a dividend of 22.50% for the year ending March 2013. * As per the Profit & Loss account
Yearly Performance Analysis PC Jewelers Gold price, after remaining high for a long time, corrected in recent months. This correction has led to improvement in gold jewelry volumes at the industry level. They have hedged their Gold and hence they have been not been affected by any inventory losses due to gold fluctuation. Their focused expansion is continuing at a strong pace, have opened 6 showrooms after IPO taking count to 36. Diamond Jewelry share has consistently improved from 26.70% in FY 2012 to 30.80% in FY 2013 Targeting share from Diamond jewelry to reach 35% by FY 15 Their Gross Margins have shown consistent improvement PAT margins have been steady at 7.23%
Yearly Performance Analysis TBZ TBZ delivered an impressive performance during the year 2013. They reported a growth of 19.69% in gross turnover, rising from ` 1,385.47 Crores in 2011 – 2012 to ` 1,658.34 Crores in 2012 – 2013. Their net profit surged from ` 57.19 Crores in 2011 – 2012 to ` 85 Crores in 2012 – 2013, a growth of 48.62%. The robust performance was driven by the addition of stores and through exquisite new collections of jewelery, fresh marketing initiatives and exclusive offers. For 2012 – 2013, Their EBITDA stood at ` 153.10 Crores, a growth of 23.80% over the last financial year. The revenue contribution from gold jewelery grew by 23.96% in 2012 – 2013 as compared to 2011 – 2012, while that of diamond jewelery grew by 9.89% for the same financial year.
Conclusion We Recommend Pc Jewelers – Steady & Unaffected Growth. Attractive Stock Price& Market Performers. Consistent Performance. (PAT at 7%) Since 2 years. Superior Quality Customer Service. A Trustworthy And Established Brand.
Webliography www.google.com www.moneycontrol.com www.equitymaster.com www.pcjeweller.com www.tbztheoriginal.com