PNGS Gargi Fashion Jewellery’s Phenomenal 13x Growth in Just One Year

PNGS Gargi Fashion Jewellery Limited is engaged in the retail business of costume and fashion jewellery, operating under the brand name ‘Gargi’ by P. N. Gadgil & Sons.’ Launched in 2021, it operates within the artificial jewellery segment. The company completed one one-year listing journey yesterday.

The IPO opened on December 8, 2022, and closed on December 13, 2022. On the final day of the IPO window, it witnessed a subscription rate of 230.94 times. The public issue received an overwhelming response, with the retail category being subscribed 248.68 times, and the NII category reaching a subscription rate of 213.21 times.

The IPO price was set at Rs 30 per share with a face value of Rs 10 per share and a lot size of 4000 shares. The total size of the company’s IPO was a mere Rs 7.8 crore, and the final share issue price was fixed at Rs 30 each. The company’s stock debuted on December 20, 2020, with a premium in the market, experiencing an impressive increase of 90% to Rs 57 per share on the BSE. This meant that investors generated a substantial return on the listing day itself. However, it concluded the day at Rs 59.85 per share.

Yesterday, when it completed one year of its journey, it closed at Rs 404 per share on the BSE, representing a remarkable multibagger return of over 1200% from its final issue price of Rs 30 per share. Investors who placed their trust in the company and held their investments through all the market fluctuations have been handsomely rewarded with impressive returns since its IPO.

Business Overview 

PNGS Gargi Fashion Jewellery Limited operates in the retail business, specializing in costume and fashion jewellery. It markets its products under the brand name ‘Gargi’ by P. N. Gadgil & Sons,’ introduced in 2021 as part of the artificial jewellery segment.

The company offers a diverse range of items, including 92.5% certified sterling silver jewellery, brass jewellery, idols, silverware, and related gift items. PNGS Gargi Fashion Jewellery Limited provides an extensive product line tailored for various occasions, from special events like weddings and festivals to everyday wear suitable for all ages and genders, spanning different price ranges. The company has agreements with P.N. Gadgil & Sons Limited and P. N. Gadgil Art & Culture Foundation. These agreements involve the provision of round-the-clock security guards for all stores where their POS Counters are located.

Financial Performance 

In Q2 FY24, the company witnessed a substantial surge in its revenue from operations, escalating from Rs 6.56 crore to Rs 10.80 crore, reflecting an impressive growth of 65% YoY. The company reported an operating profit of Rs 2.39 crore, compared to Rs 1.71 crore in the corresponding quarter of the previous year, with an operating profit margin standing at 22.13% during the quarter.

Meanwhile, the company’s net profit for the quarter amounted to Rs 1.68 crore, demonstrating a significant increase compared to the profit of Rs 1.18 crore in the corresponding quarter of the previous year. In the first quarter of FY24, the company reported a net profit of Rs 1.28 crore.

The company’s ROCE (Return on Capital Employed) and ROE (Return on Equity) are 46.2% and 43.2%, respectively. The company’s shares are currently trading at a PE ratio of 70.7 times in the market.

Stock Chart (Weekly Time Frame) 

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.