P N Gadgil share rises 3% as Nuvama initiates with 'Buy'; 31% upside eyed

PNG is the second-largest jeweller in Maharashtra by store count. Since its IPO in Sep' 24, the company has added 24 stores to its network of 39, aiming to strengthen its presence in Maharashtra.

P N Gadgil share rises 3% as Nuvama initiates with ‘Buy’; 31% upside eyed

 

P N Gadgil Jewellers share price: Jewellery maker P N Gadgil Jewellers (PNG) share rose as much as 3.35 per cent to hit an intraday high of ₹678 per share on Monday, October 20, 2025.

 

By 10:30 AM, P N Gadgil share price was trading 1.71 per cent higher at ₹667.25 per share. In comparison, BSE Sensex was trading 0.48 per cent higher at 84,352 levels.

 

Why did P N Gadgil share price rise in trade today?

 

P N Gadgil share price rose after domestic brokerage Nuvama Institutional Equities (Nuvama) initiated coverage with a ‘Buy’ rating and a target price of ₹860 per share. The target price reflects an upside potential of 30.89 per cent.

 

“Valuing the stock at 30x TTM Sep-27E earnings yields a TP of ₹860; initiating at ‘Buy’. Key risks: Slower store ramp-ups and expansion out of home state,” said Rajiv Bharati, Abneesh Roy, and Ashish Vanwari of Nuvama in a note.

 

Analysts highlighted that P N Gadgil Jewellers is Maharashtra's second-largest organised jeweller by network. Strong store productivity underpinned by regional expertise is its forte. The company is aggressively expanding its geographical footprint, across Maharashtra and into northern states, and enhancing its portfolio with high-margin studded jewellery, whose revenue share is steadily improving. 

Meanwhile, here are the top reasons behind initiating coverage:

 

Maharashtra-focused player with national ambitions

 

PNG is the second-largest jeweller in Maharashtra by store count. Since its IPO in September 2024, the company has added 24 stores to its network of 39, aiming to strengthen its presence in Maharashtra. Over the next two-three years, it plans to open another 25 stores, implying a store addition CAGR of 34 per cent over FY25-28E. PNG recently entered other states with its first store in Indore (Madhya Pradesh) and one store each in Kanpur and Lucknow (Uttar Pradesh), while planning entry into Bihar and Chhattisgarh.

 

To target lifestyle jewellery for daily wear and capitalise on higher affinity for studded jewellery in northern and western India, PNG launched “Litestyle by PNG” – lightweight 18-karat jewellery with a broader studded collection. Overall, analysts at Nuvama forecast an 18 per cent revenue CAGR over FY25-28E, driven by higher store additions that would nearly double its network. Average revenue per store may see marginal compression due to expansion outside Maharashtra.

 

Profitability set to improve 

 

PNG’s strategy to capture a greater share of studded jewellery through legacy stores and Litestyle is expected to improve margins over two–three years, analysts opined. Stabilisation of new stores will also contribute to margin growth. 

 

Analysts expect gross margin to rise 140bp over FY25–28E due to a better product mix (high-margin studded jewellery) and improved channel mix. “Ebitda margin expansion may lag at 120bp though given aggressive expansion plans. Similarly, PAT margin shall edge up 60bp due to higher depreciation and interest costs (lease accounting),” Nuvama said.

 

Efficient operations and inventory management

 

The make-to-order (MTO) model demonstrates PNG’s customer-centric approach, offering flexibility and personalised orders. The company optimises working capital by reducing store inventory by 30 per cent and manages rising gold prices by adjusting product weight for both the company and customers.