Buy P N Gadgil Jewellers; target of Rs 825: Motilal Oswal

Motilal Oswal's research report on P N Gadgil Jewellers

PN Gadgil Jewellers (PNG) reported a 6% YoY rise in consolidated revenue to INR21.8b (est. INR21.5b) in 2QFY26. Reported growth was impacted by the discontinuation of refinery sales from 3QFY25. Ex-bullion revenue rose 31% YoY, led by 29% growth in retail, 113% in e-commerce, and 106% in franchisee sales. Festive sales during Navratri surged 66% YoY to INR4.3b, supported by an 18% rise in transaction volumes and an average ticket size of INR90,000. In Oct’25, PNG recorded revenue exceeding INR18b, driven by strong festive and wedding season demand, and expects this momentum to sustain in the coming months.

Outlook

We model a CAGR of 20% in sales and 26% APAT over FY25-28E. With the successful execution of store rollouts, an effective gold hedging policy, and margin expansions, we reiterate our BUY rating on the stock with a TP of INR825 at 30x Sep’27E EPS.