P N Gadgil Jewellers Q3FY25 Earnings Analysis

**Financial Performance Overview** P N Gadgil Jewellers reported a strong financial performance for Q3FY25: * Revenue: ₹2,435 crores, representing a 23.5% year-over-year growth. * EBITDA: ₹129 crores, indicating a 37.2% increase. * Net Profit: ₹194 crores, reflecting a 49.5% year-over-year growth. * Same-Store Sales Growth (SSG): 26%. * E-commerce Revenue: ₹70 crores, which has doubled year-over-year. * Franchise Revenue: ₹226 crores, an increase of 87% year-over-year. **Expansion & Growth Strategy** The company is pursuing aggressive expansion while ensuring operational efficiency: * Opened 9 new stores in just 9 days, bringing the total to 48 stores. * Aiming to reach 53 stores by Q4FY25, with plans for an additional 25 stores in FY26. * Entering new markets such as Madhya Pradesh, Chhattisgarh, Bihar, and Uttar Pradesh. * Launching "Lifestyle by PNG" stores to attract younger customers with lightweight jewelry. **Market Trends & Consumer Behaviour** The demand for jewellery remains robust despite rising gold prices: * A noticeable shift towards lightweight, rose gold, and 18k gold jewelry. * Customer footfall has increased by 36%, with a conversion rate of 93%. * There is a growing emphasis on online sales, with e-commerce revenue doubling year over year. **Risk Management & Hedging Strategy** The company has bolstered its financial stability through a well-structured hedging strategy: * Increased gold metal loan (GML) hedging from 12% to 45%. * Fully hedged inventory to safeguard against price volatility. * Effective risk management has ensured steady profitability despite fluctuations in gold prices. **P N Gadgil Jewellers is set for ongoing growth:** * Bold expansion into new markets and retail formats. * Strong strategies for e-commerce and franchise development. * Heightened emphasis on premium and lightweight jewelry trends. * Effective financial and operational efficiency measures. **Technical Analysis** The company just had an IPO in September last year and has been in down trend since then however the last two days the stock seems to have recovered almost 80 points. The stock has reversed after forming a W pattern and is not ready to break the resistance @ 620 - 650 levels. **Conclusion** P N Gadgil Jewellers' Q3FY25 earnings report highlights a robust financial performance, strategic growth initiatives, and a solid position in the jewelry sector. With a carefully crafted expansion plan, a growing digital presence, and a focus on financial hedging, the company is well-prepared for continued success in the years ahead. **DISCLAIMER - NOT SEBI REGISTERED RIA YET...THIS IS NOT A BUYING OR SELLING RECOMMENDATION AND FOR EDUCATIONAL PURPOSE ONLY. PLEASE CONSULT WITH YOUR FINANCIAL ADVISOR BEFORE TAKING A POSITION.**