Buy PN Gadgil Shares Reiterates Motilal Oswal

PNG continues to expand its retail footprint, with 22-25 new store openings planned in FY26, including eight PNG (company owned-company operated) and 12-13 LiteStyle outlets. Retail revenue is expected to grow >35% in FY26, aided by incremental contribution from FY25 store additions and the upcoming launches. Franchisee and ecommerce channels are projected to grow ~45% and ~35%, respectively.

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Motilal Oswal Report

PN Gadgil Jewellers Ltd. has strengthened its balance sheet by reducing debt, having repaid Rs 3 billion from IPO proceeds. It has also implemented a robust hedging strategy through GML, with 100% hedged by March 2025 and now fully covered. This will lower interest costs and further boost profitability.

We model a CAGR of 22% in sales, 30% in Ebitda, and 26% in adjusted profit after tax over FY25- 27E.

The company has so far successfully rolled out new stores and achieved breakeven for all new stores. We will keep an eye on its entry into new states and its success in those markets.

We reiterate our Buy rating with a target price of Rs 825, valuing the stock at 30 times Mar’27E earnings per share.

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Motilal Oswal PN Gadgil Company Update.pdf

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