Bajaj Housing Finance IPO Vs PN Gadgil Jewellers IPO: What’s a good bet to subscribe?

Upcoming IPOs, PN Gadgil Jewellers and Bajaj Housing Finance IPO: Both the IPOs will together raise a sum of Rs 7,660 crore from the market. Both will raise money through fresh capital and offer for sale.

Written by Sparsh Bansal

September 11, 2024 14:50 IST

PN Gadgil Jewellers vs Bajaj Housing Finance IPO, PN Gadgil Jewellers and Bajaj Housing Finance IPO

PN Gadgil Jewellers vs Bajaj Housing Finance IPO: The last day to apply for Bajaj Housing Finance is September 11 and for PN Gadgil Jewellers is September 12. (Image: Pexels)

It’s been a hectic week for IPOs and the investors are spoilt for choice. Some of the key ones include key BFSI play- Bajaj Housing Finance IPO and leading jewellery retailer, PN Gadgil Jewellers IPO. Here is a look at the valuations of both to understand which issue offers better value.

Bajaj Housing Finance IPO Vs PN Gadgil Jewellers IPO- A look at valuations

Starting with Bajaj Housing Finance the company’s valuations are somewhat higher than its fundamentals. The company’s FY24 price-to-earnings ratio stood at 33.7 times, which has fallen in the last three years. Although, it is higher than the industry average of 19.93 times.

Motilal Oswal says that the housing finance company’s issue is fairly priced at 3 times P/BV (on diluted basis). Well, this is also slightly higher than that of the industry P/B ratio of 2.49 times.

Coming to the jewellery maker, PN Gadgil Jewellers IPO, its price-to-book ratio stands at 42.2 times, somewhat near to its competitors except for Kalyan Jewellers. The brokerage house Anand Rathi in a research note said that after looking at the company’s stable and growing profits and returns ratios the issue may be considered for its long-term growth.