Enterprise: The corporate sells jewelry beneath its flagship model ‘PNG’. On the finish of July 2024, PNG operated 39 shops, with a complete space of roughly 108,000 sq ft. Of those, 28 are company-owned and 11 are franchisee-owned. The manufacturing of its jewelry is carried out by greater than 75 expert craftsmen. The shops in Pune contributed 65% of the corporate’s FY24 revenues, whereas only one.8% got here from on-line marketplaces. As a standard participant, the corporate runs customer-oriented incentives and loyalty schemes.
Financials & Progress Prospects: The corporate’s revenues have grown at a compounded annual development fee (CAGR) of 55% over the past three fiscal years to ₹6,110 crore. Its web revenue has grown by 49% throughout this era to ₹154 crore in FY24. The working margin (Ebitda margin) for FY24 stood at 4.5% with return on capital employed (RoCE) at 27%. The corporate is utilizing the difficulty proceeds to fund the institution of 12 new shops in Maharashtra and in the direction of compensation of borrowings. India is the second largest shopper of gold jewelry. The Indian jewelry retail market is anticipated to develop at 16% CAGR over FY23-28 with the rising share of organised gamers, in response to disclosures made within the firm’s pink herring prospectus.
Valuations: At an implied market capitalisation of round ₹6,513 crore, the IPO values the corporate at 42.2 occasions its annualised earnings for FY24. These valuations are akin to these commanded by different regional family-owned jewelry companies of comparable measurement comparable to Senco Gold from West Bengal and Thangamayil Jewelry in Tamil Nadu. The Senco Gold inventory trades at a price-to-earnings ratio of 43.2 and has tripled since its itemizing in July final 12 months. In addition to, the rise in gold costs over the previous 12 months has pushed up the retail demand for gold. Lengthy-term buyers curious about partaking within the development of a regional jewelry retail chain could think about investing within the challenge.
RAISES ₹330 CR FROM ANCHORSPN Gadgil Jewellers on Monday raised ₹330 crore by allotting 6.8 million shares to 33 anchor buyers at ₹480 apiece. HDFC MF, Axis MF, Mirae Asset Nice Client Fund, Tata MF, Motilal Oswal MF, Nippon India MF, Bandhan MF, Edelweiss MF, Citigroup International Markets, Societe Generale and Goldman Sachs (Singapore) had been among the many anchor buyers.