P N Gadgil Jewellers: SSSG at 25.5% Across 80 Stores

PNGJL P N Gadgil Jewellers (NSE : PNGJL) is a Pune-based jewellery retailer operating primarily in western India. It sells gold ornaments, diamond jewellery and silver articles, serving consumers who buy gold as an investment alongside those seeking lighter contemporary pieces. The store network grew from 63 to 80 outlets in one year. What happened: In Q2 FY27, consolidated revenue from operations grew 22.5% year on year to Rs 2,666.3 crore. Net profit grew 53.2% year on year to Rs 121 crore. Same-store sales growth was 25.5% in the quarter, compared to 29% a year earlier. Gold jewellery business grew 47% in value and 4% in volumes. Diamond jewellery grew 21% in value and 11% by volume. Why it matters: Gold prices averaged Rs 1.5 lakh per 10 grams in Q2 FY27, up 40% year on year. P N Gadgil grew revenue faster than Titan Company, whose jewellery division grew only 7.3% in the quarter. Western India is a very large jewellery market and P N Gadgil holds very strong regional recognition built over decades. Diamond volume growth of 11% signals a gradual shift toward studded items, which carry better margins than plain gold. What I am watching: Whether SSSG holds above 20% as the high gold price base builds further. SSSG moderated from 29% a year earlier to 25.5% now. The store expansion from 63 to 80 in one year is aggressive; store-level returns will show whether the growth is profitable or dilutive. My stance: P N Gadgil trades at 18.8 times earnings, a 69% discount to Titan at 62.1 times and below Kalyan at 43.5 times. ROE is 23.5%. The deep valuation discount and improving PAT growth make it the cheapest of the three regional jewellers by far. I do not hold a position in P N Gadgil Jewellers Ltd at the time of writing. This is not investment advice.