PNG Jewellers IPO: A new stock has debuted in the gems and jewellery sector, to rival against giants like Titan Company, Kalyan Jewellers and PC Jewellers. This new entrant is none other than P N Gadgil Jewellers (PNGJL) who listed on Tuesday, September 17, 2024, on BSE and NSE at a premium of 73-74%. Overall, gains is between 75-77% in a single day. The stock price ended strong as well with double-digit gains compared to its IPO issue price. Going ahead, what should be the investors strategy in PNGJL share?
PNG Jewellers Listing Day:
On BSE, the stock price debuted at Rs 834 apiece on BSE and rallied to touch a new 52-week high of Rs 843.80 apiece. The listing was at a premium of 73.75% from its IPO issue price of Rs 480, while overall gains on the day were a whopping 75.8%.
However, the stock price witnessed a correction in the last hours of the closing bell. The stock price ended at Rs 792.80 apiece, down by 4.94% compared to the listing price of Rs 834 apiece on BSE. But against its IPO issue price, the stock ended with an upside of 65.17%.
On NSE, PNGJL debuted at a premium of 72.9% at Rs 830 apiece. But overall, the stock skyrocketed by a breathtaking 76.7%, taking into consideration its new 52-week high of Rs 848 apiece.
After the market hours, PNGJL ended at Rs 787.90 apiece on NSE, down by 5.07% from its listing price of Rs 830, however, rose by a huge 64.14% from its IPO issue price.
The volatility in PNGJL stock was expected due to back-to-back IPOs in the market.
The Rs 1,100 crore IPO opened on September 10, 2024, and closed on September 12, 2024. The IPO received an oversubscription of 59.41x, driven by the portion of Qualified Institutional Buyers(QIBs) that oversubscribed by a whopping 136.85x. Non-Institutional Investors (NII) and Retail Individual Investors (RIIs) portions oversubscribed by 56.09x and 16.58x respectively.
What Should Investors Do In PNG Jewellers Share?
Shivani Nyati, Head of Wealth, Swastika Investmart Ltd said, P N Gadgil, the renowned jewellery retailer, made a solid entry into the stock market, listing at Rs. 830 per share, a substantial 73% premium over its issue price of Rs. 480. This robust performance underscores the strong investor interest evident in the IPO's oversubscription of 59.41 times.
According to Nyati, the company's consistent financial growth and expansion plans have positioned it favourably in the market. While the IPO's valuation appeared fair, the significant listing gain suggests investors are optimistic about P N Gadgil's future prospects.
Overall, Swastika analyst said, "P N Gadgil's strong listing debut reflects investor confidence in the company's growth potential and financial stability. Investors may consider booking part profit here, and those who want to hold it for the long term may keep a stoploss at around 750."
Meanwhile, Prashanth Tapse, Senior VP (Research), Mehta Equities said, that PN Gadgil's listing was in line with the shine similar to the gold price which is trading around ALLTIMETIME. Despite the magnificent subscription and listing seen in BAJAJ HOUSING, similarly PN Gadgil IPO managed to receive healthy subscription demand and listed at a 74% premium over the IPO price. The listing is justified as the company was asking for a PE of 42.2x which seems the valuation was inline and reasonable looking at its industry peers average ~40-45x and financial growth trajectory.
Further, Tapse said, "Considering the company's strong brand loyalty "P N Gadgil" and with its solid position in Maharashtra state is well-positioned to capitalize on the demand and assuming to deliver impressive growth in future, we believed P N Gadgil Jewellers Ltd (PNG) IPO offer gave investors a unique opportunity to invest in the 2nd largest organized jewellery retailer in Maharashtra. We think with a strong brand legacy and a diverse portfolio in Gold, Silver, Platinum and diamond jewellery, PNG is catering to a wide range of customer preferences and price points, from traditional wedding jewellery to modern everyday wear."
Due to its rich heritage of PNG brand equity and legacy of more than 150 years old, the market may give a higher valuation multiple compared to its listed peers. Adding, Tapse said, "We believe PNG is well-positioned in India's growing organized jewellery sector. Hence, we recommend long term investors to "HOLD" in P N Gadgil Jewellers Ltd for long-term perspective only."
PN Gadgil Jewellers Limited offers a wide range of precious metal/jewelry products including gold, silver, platinum, and diamond jewelry under its brand name "PNG" in various price ranges and designs.
The market cap of PNGJL is at Rs 10,758.96 crore on BSE. The stock is listed and admitted to dealings on the Exchange in the list of ''B'' Group Securities.
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