P N Gadgil Jewellers IPO Review

PN Gadgil Jewellers is the second largest among the prominent organised jewellery players in Maharashtra, in terms of the number of stores as on January, 2024, which is the largest market for BIS-registered outlets in India. They are also the fastest growing jewellery brand amongst the key organised jewellery players in India, based on the revenue growth between Fiscal 2022 and Fiscal 2024.

The Company and their promoter, Saurabh Vidyadhar Gadgil’s experience in the jewellery sector enables them to leverage the knowledge and understanding of the preferences and needs of customers, which allows them to curate a broad portfolio of designs across different ranges and price points, which is specifically targeted to cater to the aesthetic and functional preferences and requirements of consumers.
 
Financially, PN G Jewellers revenue jumped from ₹25,863.05 Millions in FY22 to ₹45,593.12 Millions in FY23 and currently jumped to ₹61,191.04 Millions in FY24. Similarly, EBITDA increased from from ₹1,419.83 Millions in FY22 to ₹1,745.20 Millions in FY23 and currently at ₹2,774.26 Millions in FY24. The PAT increased from ₹695.15 Millions in FY22 to ₹937.01 Millions in FY23 and currently at ₹1,543.43 Millions in FY24. This indicates a steady financial performance.

For the P N G Jewellers IPO, the company is issuing shares at a pre-issue EPS of ₹13.08 and a post-issue EPS of ₹11.37. The pre-issue P/E ratio is 36.69x, while the post-issue P/E ratio is 42.21x against Industry P/E ratio is 63.31x. The company's ROCE for FY24 is 27.31% and ROE for FY24 is 28.88%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of PN G Jewellers potential listing gains of 60% - 65%. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Apply to the PN Gadgil Jewellers Limited IPO for Listing gain or long term investment purposes.

Disclaimer: The information provided in this IPO review is for educational and informational purposes only and should not be construed as financial advice or an offer to buy or sell securities. The review must not be used as a singular basis of any investment decision. The views herein are of a general nature and do not consider the risk appetite or the particular circumstances of an individual investor; readers are requested to take professional advice before investing. Nothing in this document should be construed as investment advice. The content is based on publicly available information and market perceptions as of the date of publication and is subject to change. Neither the author nor the website is responsible for any losses or damages arising from the use of this information. 

About the Author
CA Abhay Kumar (Also known as CA Abhay Varn) is a qualified Chartered Accountant by profession and cleared CA at age 21. He is a SEBI Registered Research Analyst with Registration Number - INH300008465. He Possesses 8+ years of experience in the Stock Market Field and has also worked in Big CA firms during the training period. He is good at Technical analysis and Fundamental Analysis and uses both Technical and Fundamental analysis along with five other important factors that affect the movement of the Market namely Global Market Analysis, Upcoming Event Analysis, Institutional Money Analysis, Derivative Data Analysis, and Emotions and Sentiment of Traders and Investors in his Framework called - Technical Fundamental GUIDE to find the winning Trades.
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