1. At a Glance
Founded in 1832 and IPO-ed in 2023, PNG Jewellers is a heritage jewellery brand turned national expansion machine. With ₹7,693 Cr in FY25 sales and 52% profit CAGR in 5 years, it’s not your average shaadi-season darling—it’s trying to go Titan-mode… but with 4% margins.
2. Introduction with Hook
Imagine if your great-great-grandfather opened a jewellery store in 1832—and 190 years later, it’s listed, making ₹218 Cr in annual profits… but still doesn’t pay a single rupee in dividends.
P N Gadgil isn’t just a brand—it’s a Marathi emotion. But can this legacy handle the pressure of modern-day public markets, store expansions, QIPs, and aggressive competition from Titan, Senco, and your local showroom that sells “22K + GST free” on Instagram?
- FY25 Net Profit: ₹218 Cr
- ROE: 20.9%
- Dividend: ₹0.00 (because… diamond hands?)
3. Business Model (WTF Do They Even Do?)
PNG is in the retail jewellery business—gold, silver, diamonds, and temple-style nostalgia—across 50 showrooms in 23 cities and 3 states.
Revenue Segments:
- 85%: Gold jewellery (high volumes, low margins)
- 10%: Diamond and designer jewellery (low volumes, better margins)
- 5%: Silver items, puja products, and other assorted “maa ke liye kuch bhi” gifting SKUs
They’ve introduced branded collections, lightweight jewellery, and even “daily wear” gold (aka guilt-free purchases after a bonus).
4. Financials Overview
| Year | Revenue (₹ Cr) | Net Profit (₹ Cr) | OPM (%) | EPS (₹) |
|---|---|---|---|---|
| FY21 | ₹1,901 | -₹7 | 3% | -1.32 |
| FY22 | ₹2,539 | ₹70 | 4% | 10.43 |
| FY23 | ₹4,488 | ₹94 | 3% | 13.46 |
| FY24 | ₹6,060 | ₹154 | 4% | 13.08 |
| FY25 | ₹7,693 | ₹218 | 4% | 16.08 |
Verdict: Sales tripled in 3 years, profits grew faster than a bride’s gold wishlist. But margins haven’t budged. It’s still a grind-it-out retail biz.
5. Valuation
CMP ₹611. EPS ₹16.08 → P/E: 38x
Book Value: ₹115 → P/BV: 5.3x
EduInvesting Fair Value Range (FY26E):
- Bear Case (margin pressure, slowdown): ₹470
- Base Case (steady growth, 20% PAT CAGR): ₹620
- Bull Case (store-led boom + QIP fuel): ₹725
Conclusion: Valuation is pricing in Titan-style ambition. PNG better bring its A-game or get buried in EMIs and gold loan repayments.
6. What’s Cooking – News, Triggers, Drama
- QIP on Deck: ₹1,000 Cr raise via equity/securities approved July 2025
- New Sub-Brand Launched + 2 Stores Added in Q1 FY26
- 7-9 More Stores Coming Soon
- FY25 Cash Flow from Ops: -₹675 Cr → Someone’s swiping their corporate card like a shaadi planner on steroids
- FIIs trimming stake from 3.8% to 0.64% in just 3 quarters
7. Balance Sheet
| Particulars | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity Capital | ₹55 Cr | ₹118 Cr | ₹136 Cr |
| Reserves | ₹256 Cr | ₹416 Cr | ₹1,418 Cr |
| Total Borrowings | ₹387 Cr | ₹455 Cr | ₹930 Cr |
| Total Liabilities | ₹1,063 Cr | ₹1,465 Cr | ₹3,144 Cr |
| Net Worth | ₹311 Cr | ₹534 Cr | ₹1,554 Cr |
Key Insight: Leverage doubled in a year. But equity raised too, so balance is… flashy but not fragile.
8. Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) | Net Cash |
|---|---|---|---|---|
| FY23 | ₹105 | -₹45 | -₹55 | ₹5 |
| FY24 | ₹6 | -₹49 | ₹51 | ₹9 |
| FY25 | -₹675 | -₹424 | ₹1,167 | ₹68 |
Translation: Operations guzzled cash in FY25. Expansion is being bankrolled via financing. Expect more store openings… and hopefully not more debt.
9. Ratios – Sexy or Stressy?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE | 23% | 30% | 19% |
| ROE | 13% | 21% | 20.9% |
| OPM | 3% | 4% | 4% |
| Debt/Equity | 0.73 | 0.85 | 0.60 |
Verdict: ROE is shining like 916 Hallmark gold. But margins remain fragile and CFO bleed is real.
10. P&L Breakdown – Show Me the Money
| Item | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | ₹4,488 Cr | ₹6,060 Cr | ₹7,693 Cr |
| EBITDA | ₹123 Cr | ₹269 Cr | ₹336 Cr |
| Net Profit | ₹94 Cr | ₹154 Cr | ₹218 Cr |
| EPS | ₹13.46 | ₹13.08 | ₹16.08 |
Conclusion: Revenue surging, profits glittering—but efficiency hasn’t changed in a decade. All volume, little value-add.
11. Peer Comparison
| Company | ROCE | P/E | OPM | Mcap (Cr) | Promoter Holding |
|---|---|---|---|---|---|
| Titan | 19.1% | 90x | 9.4% | ₹3,02,104 | 52.9% |
| Kalyan Jewellers | 14.3% | 85x | 6.0% | ₹60,897 | 60.5% |
| Senco Gold | 10.0% | 36x | 5.9% | ₹6,052 | 54.7% |
| PNG Jewellers | 19.4% | 38x | 4.0% | ₹8,297 | 83.1% |
Insight: PNG is cheap by P/E vs Titan, expensive vs Senco. Performance-wise, it’s right in the middle. Reputation high, margins low.
12. Miscellaneous – Shareholding, Promoters
- Promoters: Holding strong at 83.11%
- FIIs: Down from 3.8% to 0.64% in 3 quarters
- DIIs: 5.34%
- Public: ~10.9% and slowly rising
Pattern: Institutions are cautious, public seems enchanted. High promoter skin—big plus.
13. EduInvesting Verdict™
P N Gadgil Jewellers is that cousin at every wedding who looks super successful, flaunts branded gold chains… but you’re not sure if his startup is burning cash or booming.
Legacy is real. Growth is undeniable. But margins, cash flows, and market positioning need polishing.
If PNG wants Titan-like multiples, it needs Titan-like efficiency, loyalty programs, and diamond-level brand building. For now, it’s a bullish story dressed in traditional wear—with a pinch of financial bling and a whole lot of expansion risk.
TL;DR: Not a scam. Not a steal. A high-karat growth story… but one that must justify its sparkle.
Metadata
– Written by EduInvesting | 19 July 2025
– Tags: P N Gadgil Jewellers, Gold Retail, Jewellery Stocks, IPO, Maharashtra Brands, PNG, Retail Expansion, Consumer Durables
