P N Gadgil Jewellers Limited

Consumer Cyclical — Luxury Goods · NSE

₹603.00+₹12.15 (+2.06%)

DalalBaazaar Score

67 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by moderate debt load, negative free cash flow, small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

The 60-second version of P N Gadgil Jewellers Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

P N Gadgil Jewellers Limited, together with its subsidiaries, engages in the retail sale of gems, diamonds, semi-precious stones, and jewellery products in India and the United States.

IndustryLuxury Goods

SectorConsumer Cyclical

Employees2,950

Annual revenue₹10,739 Cr

How does it make money?

Turns over ₹10,739 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹6 left at the operating level before interest, tax and depreciation. Each of its 2,950 employees supports ₹3.64 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹3.64 Cr

Who are its competitors?

The closest listed comparisons in its industry are TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED, ASIAN PAINTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 30.0%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 20.9% against a peer median of 25.9% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE25.9%

What is the outlook?

3 analysts covering the stock expect revenue to grow about 17.0% and earnings to grow about 16.6% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+17.0%

Est. earnings growth+16.6%

Analysts3

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +138% while net margin moved +132% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+138%

Margin effect+132%

DalalBaazaar Score

67/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.26 — historically steadier than the index
✗ Small Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

69/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

73/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

18.4x

2Y Median

37.9x

27 monthly readings · mean 39.8x · range 19.3x–65.5x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 52% below its 2y median of 37.9x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 73% below the peer median of 69.2x.

vs. its own history

Cheap

37.9x median over 27 months · -52%

vs. sector peers

Cheap

69.2x median of 4 peers · -73%

vs. generic bands

Fair

15x–35x

EV/EBITDA

16.2x

PEG

0.24

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 4.2% to 6.1% over 3 years.
High return on capital employed
ROCE of 30.0% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

4 items require attention · 4 high

🔴Debt has risen sharplyFinancial
Total debt is up 436% over 3 years, from ₹324 Cr to ₹1,737 Cr.
🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Inventory building faster than salesFinancial
Inventory up 512% against revenue up 138% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 30.0% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 4.2% to 6.1%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 52% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 73% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
4 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 25% a year✓ 33.6% CAGR
Latest reported year was 40.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 4%✓ 6.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹782 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 27%✓ 30.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 5 neutral · 1 weak

Market Cap

₹8,876 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

18.4x

Fair

Fairly valued against the generic band

P/B Ratio

4.17x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹32.84

Profitable

Profitable on a per-share basis

ROE

20.9%

Strong

Strong capital efficiency

ROCE

30.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.89x

Moderate

Moderate leverage

Revenue Growth (YoY)

40.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

51.9%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹782 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

14.4x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

6.8%

Average

Average margins

Net Margin

3.9%

Average

Average bottom-line conversion

Current Ratio

1.53

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.26

Defensive

Steadier than the market

52W Range Position

43%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

594.4 / 603.9

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

49.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹4,508 Cr	₹6,112 Cr	₹7,693 Cr	₹10,739 Cr	+33.6%
EBITDA	₹189 Cr	₹278 Cr	₹367 Cr	₹651 Cr	+51.1%
EBITDA Margin	4.2%	4.5%	4.8%	6.1%	—
PAT (Net Profit)	₹74 Cr	₹155 Cr	₹218 Cr	₹410 Cr	+76.7%
EPS	₹5.47	₹11.43	₹17.1	₹30.2	+76.7%
ROE	19.9%	29.0%	14.0%	20.9%	—
ROCE	30.2%	36.4%	19.8%	30.0%	—
Total Debt	₹324 Cr	₹455 Cr	₹930 Cr	₹1,737 Cr	+75.0%
Free Cash Flow	₹57 Cr	-₹24 Cr	-₹728 Cr	-₹782 Cr	—

🟢 Revenue has grown at 33.6% a year over 3 years.

🟢 EBITDA has grown at 51.1% a year over 3 years.

🟢 EBITDA Margin has risen from 4.2% to 6.1% over 3 years (+1.9 pts).

🟢 PAT (Net Profit) has grown at 76.7% a year over 3 years.

🟢 EPS has grown at 76.7% a year over 3 years.

🟡 ROE has held roughly flat at 20.9% over 3 years.

🟡 ROCE has held roughly flat at 30.0% over 3 years.

🔴 Total Debt has grown at 75.0% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹57 Cr to -₹782 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹4,964 Cr

Total Liabilities

₹3,001 Cr

Cash & Equivalents

₹42 Cr

Operating Cash Flow

-₹717 Cr

Capex

-₹65 Cr

Shareholding (proxy)

Institutional Holding

5.3%

Insider Holding

76.6%

Analyst Consensus

Recommendations

3 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹782.67

+29.8% vs CMP

Target Range

₹750 – ₹805

Peer Comparison

Company	P/E	ROE
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%
ASIAN PAINTS LIMITED	46.9x	22.3%

Recent News

4 mixed2 general

P N Gadgil Jewellers Closes ₹700 Crore QIP At 4.95% Discount

Sahi, 04 Aug

PN Gadgil Jewellers Share Price: Q2 Growth Slows to 22.4%

Univest, 09 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

PN Gadgil hits 5% lower band; gold bars, studded jewellery drag Q4 margins

Business Standard, 18 MayResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

P N Gadgil Jewellers sets Sept 28 AGM; Radhika Gadgil seeks reappointment

scanx.trade, 28 Sept

Analysts Are Updating Their P N Gadgil Jewellers Limited (NSE:PNGJL) Estimates After Its First-Quarter Results

Simply Wall Street, 30 JulAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

P N Gadgil Jewellers Raises Rs 700 Crore Via QIP; Check Key Details Inside

NDTV Profit, 04 AugFunding

🟡Mixed / dependsNew funding changes the capital structure. Debt raises leverage; an equity raise dilutes existing holders.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongGrowth · Profitability · Valuation

MiddlingBusiness Quality · Financial Health · Risk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 4 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive · see Key things to watch ↑