Buy PN Gadgil Ltd For Target Rs. 825 by Motilal Oswal Financial Services Ltd
Strong double-digit SSSG; store expansion on track
PN Gadgil (PNG) released its pre-quarterly update for 4QFY25. Here are the key takeaways:
Revenue
* PNG saw ~5% YoY consol. revenue growth (est. 10% in 4QFY25, 24% in 3QFY25) during the quarter.
* The company discontinued HO Bullion accounting from 3QFY25, resulting in reported numbers being lower than the underlying performance.
* PNG’s SSSG stood at 26.3% during the quarter.
* The Retail segment saw ~50% YoY revenue growth in 4QFY25, contributing ~82% of total revenue.
* The Franchise segment saw 37% YoY revenue growth, contributing 12% of total revenue.
* The E-commerce segment saw 244% YoY revenue growth, contributing 6% of total revenue.
* The Diamond (Studded) segment saw 31% YoY revenue growth, reaching 7.4%.
* On Gudi Padwa, the company recorded 40% sales growth YoY, reaching INR1235m.
Stores
* The company has opened five stores—four COCO and one FOCO—bringing the total store count to 53.
* It plans to launch 20-25 new stores in FY26 to sustain its growth momentum, with a focus on Uttar Pradesh and other key regions.
* This strategy underscores management’s confidence in the market potential and its commitment to enhancing physical presence.
* The new stores are expected to boost accessibility, deepen brand penetration, and reinforce value delivery.
Outlook
* The company anticipates strong performance in FY26, driven by robust demand beginning with Akshaya Tritiya and an extended wedding season, which is expected to boost sales in 1QFY26.
* The company expects continued growth, supported by the rising consumer purchasing power.
* Additionally, a shift in consumer preferences is anticipated to drive sustained momentum.
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