If anyone can help me understand this - it will be very helpful for me. Thank you
Ex:
FOCO (Franchise Owned Company Operated): Franchise - PNG & Sons, Company- Gargi
1st Jan: PNG & Sons: Inventory - 1Cr
31 March : PNG & Sons: Inventory - Inventory: 1.1Cr
Inventory Transfer from Gargi from 1st Jan to 31st March - 20 Lac
Sales accounted by Gargi = 1Cr + 20 Lac - 1.1Cr = 10 Lac
This inventory of 1.1cr on 31st March goes to Gargi Books as Assets
FOFO (Franchise Owned & Franchise Operated)
1st Jan: Inventory of 1Cr moves from Gargi Books to PNG & Sons Books
Sales Accounted For Quarter by Gargi now is 1cr + 20 Lac = 1.2 Cr
Sales for the period is inflated because of 1 time inventory Transfer
But this is only 1 quarter phenomenon, going forward PNG & Sons will only replinish inventory which is being sold to end customer
Hope this helps
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Recently company announced launch of 9 carat plain gold jewellery under Gargi brand. Its an interesting segment to enter in current high gold price scenario. This will provide another growth avenue for the company. With stronger balance sheet due to its recent preferential issue ( Rs 970/share) and systematic store expansion beyond Maharashtra , company is ready to begin next phase of its growth. Main board listing in early 2026 would take away SME tag making stock rerating a real possibility.
Disclosure - Invested as part of my core PF. Adding more on every drop. Not a buy or sell recommendation.
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Expect PNGS Reva Diamond IPO (whenever that happens) to have rub off effect on PNGS Gargi stock price. Also expect good quarter this time, aided by inventory gains due to rising silver prices (which can get partly offset if they are not able to raise prices fast enough)
PS added post Q results : great results, which means company is able to pass on silver price rise to its customers. This is much better news than the results itself
Bingo!!!. Your prediction for results are 100% right. Congratulations!!!
Great Results of Q2 FY 26. Revenue and profit doubled.
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Gargi posted good set of numbers today.
| Metric | Q2 FY26 (₹ lakh) | Q2 FY25 (₹ lakh) | YoY Change |
|---|---|---|---|
| Revenue from operations | 4,644.82 | 2,295.10 | +102 % |
| Total income | 4,773.12 | 2,305.67 | +107 % |
| Profit before tax | 1,374.16 | 690.97 | +99 % |
| Profit after tax | 1,027.48 | 509.35 | +102 % |
| EPS (₹) | 9.88 | 5.14 | +92 % |
Thanks to Gold prices surging, it moves some consumers to fashion jewellery.
As on date of results, the Company has 33 SIS stores with P. N. Gadgil & Sons Limited, 51 other entity SIS stores and 21 exclusive brand stores.
Store count is 105 as of this results, they had 84 stores as of my post in feb 2025. So their target of 118+ can be achieved by march 2026.
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