Analyst sees a potential breakout in the stock as festive demand and strong fundamentals align.
Gold hit a record high on Tuesday as the US government shutdown entered its second week, even as the clamour for a Fed rate cut continues to rise.
A Nomura report highlighted that the Indian jewelry market grew from $48 billion in FY18 to $90 billion in FY25 (a 9% CAGR), and is expected to expand to $150 billion by FY33E.
Despite the continuous increase in gold prices, organized jewelers are demonstrating innovation. They are introducing convenient installment plans, facilitating old gold exchange programs, and creating lightweight jewelry options. Furthermore, they are leveraging e-commerce and expanding into untapped Tier 2, 3, and 4 markets, consistently surpassing industry growth, Nomura added.
A SEBI-registered analyst, Mayank Singh Chandel, drew a parallel between gold stocks, which resemble festival lights, shining their brightest when sentiment aligns in their favor. And one such stock on his radar is PN Gadgil Jewellers.
Bullish Bet On PN Gadgil
Chandel noted that the company has been a well-recognized name for years, although not every phase in its market journey has been golden. Following its IPO, the stock lost momentum and slipped into a prolonged downtrend. However, in early 2025, the selling pressure began to ease, and since then, the stock has entered an accumulation phase, displaying a mild bullish bias.
In its operational Q2 update, the company reported festive season sales of ₹618 crore during Navratri and Dussehra for the financial year 2025–26, representing a robust 65% increase over the previous year. Dussehra alone delivered the company’s highest-ever single-day festive sales of ₹190 crore.
Chandel added that the upcoming Diwali season will brighten the prospects for PN Gadgil.
Technical Outlook
Technically, the stock is trading at a key resistance zone between ₹635 and ₹650. If it breaks and closes above this level, it could move higher, according to him. During this accumulation phase, both the upward and downward swings have become smaller, which usually means reduced volatility and often builds pressure for a potential breakout.
Chandel concluded that the festive season sentiment booster, supported with strong fundamentals and technicals, is bound to make PN Gadgil shine brighter.
What Is The Retail Mood?
Data on Stocktwits shows that retail sentiment has improved to ‘neutral’ amid ‘high’ message volumes. It was ‘bearish’ last week.
PN Gadgil shares have surged 27% over the last six months. Year-to-date, however, they are down 2%.
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