P N Gadgil Jewellers Coverage Initiation Report

This document is a research report that initiates coverage on P N Gadgil Jewellers (PNG), the second-largest jewelry retail chain in Maharashtra. The report outlines the company's current market position, with over 48 stores and a revenue of INR61 billion in FY24. It details PNG's strategic focus on enhancing its product mix, particularly increasing the proportion of studded jewelry, and expanding its retail presence in Maharashtra and beyond. The report anticipates a revenue, EBITDA, and PAT compound annual growth rate (CAGR) of 23%, 31%, and 36% respectively from FY24 to FY27. It highlights the company's plans to add 44 new stores by FY27 and improve customer engagement through make-to-order services. The report also discusses the competitive landscape, noting PNG's underpenetrated market share in Maharashtra and the potential for growth through effective brand building and strategic expansion. Additionally, it provides financial forecasts and a BUY rating with a target price of INR950.