PN GADGIL
PN GADGIL FALL 28% DUE TO
PM Modi’s speech asking people to reduce gold buying hurt sentiment
Increase in gold import duty raised cost concerns
margin compression (2.3%)
Higher share of gold bars & coins in the overall sales mix (~150 bps)
Lower studded jewellery contribution (~30 bps)
Higher trade discounts & market-expansion offers (~50 bps)
MANAGEMENT HAS STATED THAT THIS IS ONE OFF AND MARGINS WILL IMPROVE IN NEXT YEAR
Guidance raised upwards:
FY27 Guidance:
Revenue guidance raised to 13,500 Cr (from 12,000 Cr guided earlier)
Confident of achieving it and probably surpass it looking at business momentum
Guidance for FY27:
Gross Margin: 12%–13%
EBITDA Margin: 7%–7.5%
PAT Margin: ~4%
25 stores will be adding IN FY27
BOUGHT PN GADGIL AT THIS FALL , CHEAP VALUATION+ 25-30% GROWTH CAN BE EXPECTED FOR NEXT 2-3 YEARS.
SURE TEMPORARY SHORT TERM HEADWINDS ARE THERE BUT BOUGHT IT.