MOFSL's Long-term Midcap Stock Pick for 68% Gain: Brokerage gives 'buy' rating to this jewellery scrip after Q3 results? Will it shine brighter?

Jewellery stock to buy: Gold is currently at a historic high and is trading near Rs 89,000 per 10 grammes, but despite a rise in its price, jewellery stocks are under pressure.

The reasons are falling exports, a rise in gold leasing rates, and rising competition.

Amid such market conditions, domestic brokerage MOFSL has advised buying PN Gadgil Jewellers stock.

Currently, this stock is trading at Rs 565.30 on BSE. This stock has corrected 33 per cent from its 52-week high of Rs 843.80.

PN Gadgil Jewellers share price target

After the Pune-based jewellery midcap company had a conference call about Q3 results, MOFSL has given a 'buy' rating to it with a target price of Rs 950.

This is over per 68 cent higher than its closing price on BSE on Thursday (February 20, 2025).

The stock closed its trading at Rs 565.30 on Thursday. PN Gadgil's IPO came in September at an issue price of Rs 480. 

It was listed on NSE at Rs 830. 

On the same day, the stock made an all-time high of Rs 844.

After that, the stock is witnessing a continuous decline, and on January 28, 2025, the jewellery stock made an all-time low of Rs 495.

PN Gadgil Jewellers Q3 results

As far as PN Gadgil Jewellers' Q3 results are concerned, its revenue grew by 23.5 per cent to Rs 2435 crore, EBITDA jumped by 37.2 per cent to Rs 129 crore, EBITDA margin improved by 50 bps to 5.3 per cent, net profit was up by 49 per cent to Rs 86 crore, and profit margin improved by 60 bps to 3.5 per cent. 

The company opened 9 new stores in Q3, taking the total number to 48. 

The jewellery firm plans to increase the number of stores to 53 by the end of FY25. 

Two stores have already been opened in January, and 3 stores are planned to be opened in March, the firm said.

It has plans to open 25 new stores in FY26.

PN Gadgil Jewellers' growth outlook 

MOFSL believes that the company's sales, EBITDA, and net profit are expected to grow at an average rate (CAGR) of 23 per cent/31 per cent/29 per cent between FY25-27. 

Talking about the festive season, there was tremendous demand on the occasion of Diwali and Navratri. 

The firm's E-commerce sales had almost doubled.

The management said that despite a rise in gold price, footfall remained stable in Q3. Due to an increase in price, there has been a boom in the old jewellery exchange, it said.

(Disclaimer: The stock investment advice given here is given by the brokerage house. These are not the views of Zee Business. Consult your advisor before investing.)