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P N Gadgil Jewellers Limited offers a wide range of precious metal/jewelry products including gold, silver, platinum, and diamond jewelry under its brand name “PNG” in various price ranges and designs. The IPO comprises a fresh issue of equity shares worth up to Rs 850 crore and an offer for sale aggregating up to Rs 250 crore by the existing shareholder SVG Business Trust.

About P N Gadgil Jewellers IPO:

•  Company was originally incorporated as “P N Gadgil Jewellers Pvt. Ltd”, in October 2013 at Pune.
• P. N. Gadgil & Sons Ltd. is one of the oldest and most reputed Jewellers in Maharashtra. It has a legacy of over six generations that is built on trust, excellence and a warm relationship with the customers and the society
• The company is the 2nd largest among the prominent organized jewellery players in Maharashtra, in terms of the number of stores as on January 2024.
• The company operates 39 stores spread across 21 cities in Maharashtra and Goa and 1 store in the U.S.
• Of the 39 stores 28 stores are owned by the company, and 11 stores are operated on a franchisee owned and company operated.
• The company intends to open additional 9 stores by FY2025 and 3 stores by FY2026 and expects the number of stores in Western India to increase to 51 stores.
• As of March 31, 2024, the company’s product portfolio comprises over 10,000 SKUs in gold, over 1,200 SKUs in silver, over 2,700 SKUs in platinum and over 24,000 SKUs in diamond jewellery designs, including a wide range of gold, diamond, silver and platinum products across different price points.
• The company has 8 subbrands in gold jewellery, 2 subbrands in diamond and 2subbrands in platinum jewellery.
• The promoters are Saurabh Vidyadhar Gadgil, Radhika Saurabh Gadgil and SVG Business Trust.

Financials : P N Gadgil Jewellers IPO

Anchor: PN Gadgil Jewellers IPO

: PN Gadgil Jewellers allocated a total of 68.75 lakh equity shares as part of anchor book to 33 funds Rs 330 crore from anchor investors ahead of its initial public offering.. This includes investors such as ICICI Prudential Life Insurance Company, Tata Mutual Fund, Axis Mutual Fund, Mirae Asset Mutual Fund, HDFC Mutual Fund, Bandhan Mutual Fund, Nippon India Mutual Fund, Goldman Sachs Singapore Pte, Citigroup Global Markets Mauritius, Societe Generale, Troo Capital, and The Jupiter Global Fund.

Salient Points: PN Gadgil Jewellers IPO

• P. N. Gadgil & Sons Ltd. is one of the oldest and most reputed Jewellers in Maharashtra. It has a legacy of over six generations that is built on trust, excellence and a warm relationship with the customers and the society
• P. N. Gadgil & Sons Ltd. is pioneer in bringing new jewellery trends in Maharashtra and have introduced Temple Motifs, Contemporary Jewellery designs. To connect with changing aspirations of customers P. N. Gadgil & Sons Ltd. have also introduced Light Weight, Daily Wear and Designer Collections. To reach out to the Indian and Global customers P. N. Gadgil & Sons Ltd. has an E-Commerce onlinepng.com platform which is secured and trusted.
• In FY 2024,. 92.2% of their revenue was derived from gold products, with silver contributing 3.43%, diamonds 3.69%, and platinum and other products 0.68%
• The company is the fastest growing jewellery brand amongst the key organised jewellery players in India, based on the revenue growth between FY 2022 – FY 2024. During FY2022 – FY2024 the company’s revenues from operations grew at a CAGR 54.63% and achieved an EBITDA growth of 39.78%, which is the 2^nd highest in key organised jewellery players in India.
• Second largest organised retail jewellery player and one of the fastest growing brand in Maharashtra;
• Their revenue per square feet was Rs 6.02 lakh in FY 2024. This is the highest among the main jewellery players in the country.
• The company’s existing store footfall grew by 27.70% between FY2022 and FY2024. The average transaction value of its products increased at a CAGR of for gold jewellery is 16.46%, for diamond jewellery is 22.69% and for silver jewellery is 3.05% between FY2022 and FY2024
• The company’s revenue from operations increased from ₹ 2,555.63 Cr in FY2022 to ₹ 6,110.95 Cr in FY2024 at a CAGR of 54.63%. The company’s profit for the year increased from ₹ 69.52 Cr in FY2022, to ₹ 154.34 Cr in FY2024. The company’s revenue per square feet in FY2024 was the highest among the key organised jewellery players in India.
• They have the lowest working capital days among the key jewellery players in FY2024.
• P/E ratio stands at ~ 42x.
• P/E of Listed Peers:
  • Kalyan Jewellers India – 105
  • Senco Gold 44.5
  • Thangamayil Jewellery 48.5
• I intend to apply in PN Gadgil Jewellers IPO. Though not cheap, it is a well established and trusted legacy brand in Maharashtra and now looking to expand its foot print in western India. ;Low duty is expected to push gold jewelry retailers revenue up by 20-25% in FY25.
• GMP as reported on social media has been Rs. 240 (50%)
• This post is exploratory and educational purposes only.
• Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.