P N Gadgil Jewellers Reports Strong Financial Growth Amidst Market Challenges

P N Gadgil Jewellers, a small-cap player in the Gems, Jewellery, and Watches industry, has recently undergone an evaluation adjustment reflecting its financial standing. The company reported a positive financial performance for the quarter Q1 FY25-26, showcasing a robust ability to service debt, evidenced by a low Debt to EBITDA ratio of 1.20 times.
The firm has demonstrated healthy long-term growth, with net sales increasing at an annual rate of 26.50% and operating profit rising at 22.39%. Notably, the profit after tax (PAT) for the nine months ending June 2025 reached Rs 217.37 crore, marking a growth of 47.02%. Additionally, the operating profit to net sales ratio for the quarter peaked at 6.41%, while profit before tax (PBT) less other income for the quarter stood at Rs 79.85 crore, reflecting a growth of 24.1% compared to the previous four-quarter average.

Despite these positive indicators, the company faces challenges, including a return on capital employed (ROCE) of 15.4 and a relatively high enterprise value to capital employed ratio of 4.8. Over the past year, the stock has generated a return of -7.32%, indicating a consistent underperformance against the benchmark BSE500 over the last three years.

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