PC Jeweller Limited Shares slid 25% due to a lack of confidence

PC Jeweller Limited shares are down a considerable 25% in the last month, which continues a horrid run, annoying the shareholders of the company.  But a bad month has not completely ruined the past year as the stock gained 63%, which is a good show even in a bull market.

Though the share price has dipped substantially, the PC Jeweller is a stock to steer clear of with a price-to-sales ratio of 4.2x, considering almost half the companies in India’s Specialty Retail industry have P/S ratios below 1.3x.

 However, it’s not wise to just take the P/S at face value as there may be an explanation why it’s so lofty. Of late, PC Jeweller as its revenue has been rising very briskly. Perhaps the market is expecting future revenue performance to outperform the wider market, which has seemingly got people interested in the stock price.