Buy P N Gadgil Jewellers Ltd for the Target Rs. 825 by Motilal Oswal Financial Services Ltd

* Retail revenue to grow by 32% YoY. Reported revenue to grow by 7% due to the discontinuation of HO bullion sales.
* GP margin to expand by 435bp YoY to 13%, driven by the cessation of bullion transfers being reported as sales and an improving mix from higher studded jewelry contribution.
* Finance cost will remain stable given steady GML rate.
* We expect 10 store additions, taking the total count to 65 stores.
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