Dark horse stock of the day: PNGS Gargi Fashion Jewellery skyrocketed 20% today

The shares of PNGS Gargi Fashion Jewellery experienced a sharp rise today. The stock opened at Rs 190, almost flat from the previous day’s closing price of Rs 189. During the intraday session, the stock surged by 20% with significant trading volume. 

Upon analysing today’s share volumes, it is evident that there has been a substantial increase of more than 3.10 times in volumes on the BSE. While writing this article, the shares of the company are up by Rs 37.80, trading at Rs 226.80 on the BSE. 

Moreover, the shares have hit the upper circuit limit price of Rs 226.80, reaching a new 52-week high price. The stock’s 52-week highs and lows are recorded at Rs 226.80 and Rs 57, respectively. 

With a market capitalisation of just Rs 218.36 crore, the stock has displayed remarkable performance in recent times, especially when considering short-term durations, delivering a 26% return in just a week and an impressive 76% return in the last three months.  

Financial Performance  

In Q1 FY24, the company’s revenue experienced a significant surge of 22.33% YoY, increasing from Rs 5.33 crore to Rs 6.52 crore. The operating profit of the company was Rs 1.43 crore, with a margin of 22%. Furthermore, the net profit of the company stood at Rs 1.28 crore, reflecting a growth from Rs 0.92 crore in the same quarter of the previous year. 

In FY23, revenue experienced a substantial increase of 383% YoY, going from Rs 5.94 Crore to Rs 28.67 Crore. The operating profit of the company was Rs 6.57 crore along with a margin of 23%. The net profit of the company amounts to Rs 4.69 crore, which is a 322% YoY increase from Rs 1.11 crore recorded in FY22. 

The company’s ROCE and ROE are at 46.2% and 43.2%, respectively. Furthermore, the price-to-earnings ratio is 43.5 times. 

Regarding ownership, the promoters hold 73% stakes in the company, while both foreign institutional investors (FIIs) and domestic institutional investors (DIIs) do not hold stakes in the company. Public Investors hold 27% of the company. 

Business Overview 

PNGS Gargi Fashion Jewellery Limited, established in 2009, is a prominent player in the retail business of costume and fashion jewellery. The company operates under the brand name “Gargi by P. N. Gadgil & Sons,” which was introduced in 2021 as part of the artificial jewellery segment. 

It specialises in offering a diverse range of products, including 92.5% certified sterling silver and brass jewellery, idols, silverware, and various gift items. Their product portfolio caters to different needs, from special occasions like weddings and festivals to daily-wear jewellery for people of all ages, genders, and budget preferences. 

The company boasts an extensive collection, encompassing earrings, necklaces, pendants, chains, finger rings, bracelets, anklets, nose pins, mangal sutra, pendant sets, and bangles made from brass or silver for women of different age groups. They also provide male accessories like rings, cufflinks, and button sets, keeping up with ever-changing trends in chain and jewellery designs to satisfy their customers’ tastes and preferences.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.