P C Jewellers Ltd: Buy

The investors with short to medium term

perspective can buy the shares of P C Jewelers Ltd near the CMP of Rs.30.30, for short term targets of Rs.41/66. SL: Rs.27.
The Book Value of the shares of the company is Rs.99.67 and the Market Cap is only Rs. 1,196.86 Crore

4 (Four) Principal Triggers:

• The US has imposed a 10% duty on Chinese gems and jewellery items from September 1, 2019, which will indirectly help the Indian diamond sector.  The items that will come under this tariff net are diamonds, cultured and natural pearls, rubies, emeralds, and sapphires, synthetic precious stones, including diamonds, silver jewellery, gold necklaces and neck chains and religious jewellery.
• The NDA government has increased duty drawback rates for gold and silver jewellery, a move that would make Indian exports from these sectors more competitive in the global market. This notification shall come into effect from November, 2019. The government's decision to raise the rates would help in increasing the competitiveness of Indian gold and silver jewellery, according to market analysts. Under duty drawback, exporters get a refund of all duty and taxes which were paid for the inputs against the exported products. 
• Some months back PC Jeweller Ltd (PCJL) said that its board has given approval for the demerger of the company's export division and amalgamation of the same with its wholly-owned subsidiary PCJ Gems & Jewellery Ltd. The scheme will enable creation of an independent listed company with replica shareholding structure with the 'export division' business. Domestic division with domestic business (remaining business) would continue to be carried on in the demerged company, the filing added. Most denergers add value to the shareholders wealth.
• Fears of a global economic slowdown, continuing trade and tariff war between the United States and China, and geo-political risks could help the price of gold to sustain at higher levels.