1. At a Glance

P N Gadgil Jewellers (PNGJL) is a heritage jewellery brand from 1832 with a modern retail rollout across 3 states, 23 cities, and 50 showrooms. The IPO glow still lingers, profit CAGR over 5 years is a jaw-dropping 52.1%, and ROE stands at a gem-worthy 21%. But — no dividend, rising borrowings, and FY25 operating cash flows that wentnegative ₹675 Crmake you wonder if all that glitter is tied up in unsold necklaces.

2. Introduction

PNGJL is to Maharashtra what Tiffany is to New York — a household name in fine jewellery. This 190-year-old brand has managed to modernize its operations while keeping its legacy alive through temple motif gold, contemporary lightweight collections, and high-end diamond designs. The IPO was a glittery affair, and the stock still commands investor attention.

But jewellery retail is a working capital black hole — gold is expensive, customers want variety, and you can’t exactly keep “just-in-time” stock. For PNGJL, this means high inventory days, chunky debt, and occasional cash flow famine despite glowing P&L numbers.

3. Business Model (WTF Do They Even Do?)

• Product Lines: Gold jewellery, silver ornaments, diamond collections.
• Design Mix: Temple motifs, bridal sets, contemporary daily wear, lightweight designer collections.
• Sales Channels:
  • 50 retail showrooms (mix of company-owned and FOCO).
  • E-commerce for younger customers.
• Geographic Spread: Maharashtra-heavy but expanding in Gujarat & Goa.

The model is volume-driven but margin-limited — industry OPMs hover in mid-single digits, and PNGJL sits in that range at ~5%.

4. Financials Overview