Target: ₹725
CMP: ₹624.95
We initiate coverage on GNG Electronics, India’s largest refurbisher of laptops/desktops operating through its brand ‘Electronics Bazaar’, with BUY and DCF-based TP of ₹725 (implying 27 per cent upside and 30x June 2028E PER). Over the past decade, GNG has built a strong competitive moat in a high-growth, profitable and ESG-aligned business with a global footprint. Its differentiated model is anchored on the motto: ‘Buy Better, Refurbish Better, Sell Better’.
GNG has developed a resilient sourcing network (720+ procurement partners, including ITAD players), providing access to high-quality devices that are refurbished through multistage processes with a ‘repair over replacement’ approach. This has led to low warranty instances (<2 per cent of revenue) and minimal warranty expenses (about 0.1 per cent) backed by an extensive service network.
Consequently, GNG offers industry-leading warranties (1-3 years) and enjoys strong brand credibility. This is further aided by a large customer base (about 4,900 customer touchpoints across 46 countries). To strengthen distribution, GNG has partnered with national distributors such as Ingram Micro India/Supertron Electronics. We build in revenue/EBITDA/EPS CAGR of 24 per cent/30 per cent/37 per cent over FY26-29E, bolstered by GNG’s strong competitive position, favourable long-term industry tailwinds and a medium-term supply-demand mismatch led by memory chip shortages and the affordability gap in new laptops.