Check Before You Invest : Pearl Global Industries Ltd

BSE: 532808 NSE: PGIL ISIN: INE940H01022

| Sector: Textiles & Apparels | Industry: Textile

Snapshot

Q.1 Which industry/sub-sector does Pearl Global Industries Ltd belong to?

Pearl Global Industries Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.

Q.2 Is Pearl Global Industries Ltd a good quality company?

Pearl Global Industries Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Pearl Global Industries Ltd undervalued or overvalued?

Pearl Global Industries Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Pearl Global Industries Ltd a good buy now?

Pearl Global Industries Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Pearl Global Industries Ltd?

Pearl Global Industries Ltd revenue growth is 25.4% for FY-2025, which is above its 5-year CAGR of 7.7%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Pearl Global Industries Ltd?

Pearl Global Industries Ltd Return on capital employed is 13.58% for FY-2025, which is above its 5-year historical median of 11.52%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.3 Return on Asset of Pearl Global Industries Ltd?

Pearl Global Industries Ltd Return on Asset is 5.5%, which is above its 5-year historical median of 3.38%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Pearl Global Industries Ltd?

Pearl Global Industries Ltd Return on equity is 12.02% for FY-2025, which is above its 5-year historical median of 8.26%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Pearl Global Industries Ltd?

Pearl Global Industries Ltd Cash conversion cycle is 36 days, below its 5-year historical median of 40 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.21	1.15
ROE	12.02	8.26
ROCE	13.58	11.52
Cash Conversion Cycle	36 days	40 days

Q.6 Gross Profit margin of Pearl Global Industries Ltd?

Pearl Global Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 7% for FY-2025, which is above its 5-year median of 5.8%, indicating increasing margins.

Q.7 Operating Profit Margin of Pearl Global Industries Ltd?

Pearl Global Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 5.16% for FY-2025, which is above its 5-year median of 4.79% indicating increasing margins.

Q.8 Net Profit Margin of Pearl Global Industries Ltd?

Pearl Global Industries Ltd Net Profit Margin is 4.59% for FY-2025, is above with its 5-year median of 2.96%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	7	5.8
Operating Profit Margin	5.16	4.79
Net Profit Margin	4.59	2.96

Q.9 Debt to Equity ratio of Pearl Global Industries Ltd?

Pearl Global Industries Ltd Debt-to-Equity ratio is 0.47, which is lower with the industry average of 0.5, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Pearl Global Industries Ltd?

Pearl Global Industries Ltd Debt to cash flow from operations is 5.97, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Pearl Global Industries Ltd?

Promoters hold 61.16% of the Pearl Global Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Pearl Global Industries Ltd vs industry peers?

Pearl Global Industries Ltd revenue CAGR is 7.70%, compared to the industry median CAGR of 4.23%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	25.4	4.2
Gross Profit Growth	51.8	8.6
Operating Profit Growth	34.8	7.5
Net Profit Growth	96.4	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.21	0.98
ROE	12.02	6.1
ROCE	13.58	7.6
Cash Conversion Cycle (days)	36.2	109

Valuation & price assessment

Q.1 Stock return of Pearl Global Industries Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 29.3% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	29.3%	76.2%	90.1%	62.4%

Q.3 Valuation ratios of Pearl Global Industries Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	90.81	61.06	19.97
Price to Book	12.1	6.00	1.32
Price to Sales	6.02	2.46	1.06
EV to EBITDA	48.42	29.56	9.32

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