P N Gadgil Jewellers IPO Opens Today: Pros & Cons

Published: 10th Sep 2024

By: Value Research

About the company

P N Gadgil Jewellers is a jewellery retailer that offers gold, diamond, and platinum jewellery. It boasts eight distinct jewellery brands and operates 39 stores—majorly spread across Maharashtra in India—and one store in the US.

Total IPO size (Rs cr) 1100 Offer for sale (Rs cr) 250 Fresh issue (Rs cr) 850 Price band (Rs) 456 - 480 Subscription dates September 10-12, 2024 Purpose of issue Capital expenditure and repayment of debt obligations

IPO details

6514   Net   worth (Rs cr) 1384   Promoter   holding (%) 83.1   Price/earnings   ratio (P/E) 42.3   Price/book   ratio (P/B) 4.7M-cap (Rs cr)

Post-IPO

2Y   growth (% pa) FY24 FY23 FY22   Revenue   (Rs cr) 54.6 6111 4508 2556   EBIT   (Rs cr) 58.3 223 101 89   PAT   (Rs cr) 48.3 154 94 70   Net worth (Rs cr) 534 366 282   Total debt (Rs cr) 456 324 335Key financials

Financial history

Ratios 3Y   average (%) FY24 FY23 FY22   ROE   (%) 30.4 34.3 28.9 28   ROCE   (%) 23.9 27.3 23.6 20.8   EBIT   margin (%) 3.1 3.6 2.2 3.5   Debt-to-equity 0.9 0.9 1.2

Key ratios

The pros

P N Gadgil Jewellers is the second-largest jewellery retailer in Maharashtra and holds a 17 per cent market share in India. Between FY22 and FY24, the company was the fastest-growing jewellery retailer in the organised market.

The cons

P N Gadgil Jewellers faces risks due to its geographic concentration. Additionally, competition is fierce in India’s fragmented jewellery market. For our in-depth risk report, click the link below:

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