Buy PN Gadgil Ltd For Target Rs. 825 by Motilal Oswal Financial Services Ltd

* We expect retail revenue to grow 35% YoY. However, reported revenue growth will be limited to 5% due to the discontinuation of HO bullion sales.
* Gross profit margin is projected to expand 170bp YoY to 10%, driven by the cessation of bullion transfers being reported as sales and an improving mix from higher studded jewelry contribution.
* Finance costs will stabilize to some extent as the GML rate has reduced to 4%.
* We expect five store additions, bringing the total store count to 58.
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