PN Gadgil Jewelers Stock Market Listing :The IPO of PN Gadgil Jewelers Limited has proved to be a blockbuster for investors. The company’s shares have made a strong entry in the stock market today. This stock was listed on BSE today at a price of Rs 834, while the IPO price was Rs 480. That is, investors have got 74 percent return on listing. The IPO received an overall high subscription, while its premium in the gray market also remained above 60 percent.
PN Gadgil : Subscription Status
This IPO was subscribed 59.41 times overall. The reserve portion for QIB was filled 136.85 times in total. The reserve portion for NII was filled 56.08 times overall. While the reserve portion for retail investors was filled 16.58 times.
Plans for continued expansion
Brokerage house Canara Bank Securities says that the company has a strong presence in Maharashtra with 38 stores. The company also boasts of a large inventory with over 38,000 SKUs. The company plans to open 12 new stores in Maharashtra in the next 2 years, followed by expansion in neighboring states. The target is to reach 120 stores in 6 to 7 years.
PN Gadgil has a P/E ratio of 22.23 times and a P/B ratio of 10.60 times, which shows better valuation than Pierce. Ebitda has almost doubled from Rs 141.98 crore in FY22 to Rs 277.42 crore in FY24, which shows the potential of the company. The company is expanding its operations with profitability.
Ready to capitalize on growth trend
Brokerage house SBI Securities says that the company is one of the fastest growing organized jewelers in Maharashtra and operates under the legacy of ‘PN Gadgil’ brand. The company’s revenue, Ebitda and PAT have a CAGR growth of 54.6 per cent, 55.5 per cent and 49.0 per cent. The company expects to save Rs 31 crore from finance cost after repaying the debt from the IPO proceeds and plans to use Rs 393 crore to open 12 new stores in FY25 and FY26. The company is also ready to capitalize on the growth trend of the jewelry market.
(Disclaimer: The views or advice on the stock are given by the brokerage house. These are not the personal views of Financial Express. There are risks in the market, so take expert advice before investing.)
