Jewellery stocks shine: PC Jeweller shares hit upper circuit as govt cuts basic custom duty
Reacting to the government's decision, PC Jeweller MD Balram Garg said that it will bring positive changes to the gems and jewellery sector.
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Shares of gold and jewellery retailers jumped 14 per cent on Tuesday after Finance Minister Nirmala Sitharaman said the government will reduce the basic customs duty on the yellow metal and silver to 6 per cent. PC Jeweller's shares jumped 5 per cent to settle at Rs 74.16 - also its upper circuit limit. The 52-week low of the stock of PC Jeweller, which has a market cap of Rs 3,451 crore, is Rs 25.45.
PC Jeweller is a constituent of BSE SmallCap index. According to BSE analytics, its shares have delivered a positive return of 20 per cent in two weeks and 37 per cent in a month. The counter has jumped 47 per cent so far this year. PC Jeweller shares have delivered a multibagger return of 137 per cent in one year, resulting in wealth gain for investors.
Reacting to the government's decision, PC Jeweller MD Balram Garg said that it will bring positive changes to the gems and jewellery sector.
"The Indian government's budget unveiled positive changes for the gems and jewellery sector, with a significant reduction in customs duty on precious metals like gold, silver, and platinum (to 6% and 6.4% respectively). This move is expected to decrease retail jewellery prices, potentially driving up consumer demand and boosting domestic value addition. Additionally, the complete removal of duties on 25 essential jewellery-making minerals, streamlined export-import processes, and support for the lab-grown diamond sector all contribute to a bright outlook for the industry. With a projected growth to reach US$100 billion by 2027, these budget announcements are likely to accelerate this expansion," said PC Jeweller MD Balram Garg.
The scrip of Tribhovandas Bhimji Zaveri surged 13.86 per cent to close at Rs 155.30 apiece, Titan Company zoomed 6.63 per cent to Rs 3,468.15, Rajesh Exports rallied 6.32 per cent to finish at Rs 316.35 on the BSE. Senco Gold climbed 4.75 per cent to Rs 987.55 and Kalyan Jewellers India rose 4.53 per cent to end at Rs 552.85 on the exchange.
On Tuesday, the government slashed customs duties on a range of products, including gold, silver, and critical minerals, to cut input costs, increase value addition, promote export competitiveness and boost domestic manufacturing.
The basic customs duty on coins of precious metals, gold/silver findings, and gold and silver bars was reduced to 6 per cent from 15 per cent. It was cut to 5.35 per cent from 14.35 per cent for gold and silver.
On platinum, palladium, osmium, ruthenium, and Iridium, the levy was cut to 6.4 per cent from 15.4 per cent.
The gems and jewellery exporters have been demanding to cut duties on precious metals to boost exports and manufacturing for the last several years.
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