Check Before You Invest : PDS Ltd

Q: Which industry/sub-sector does PDS Ltd belong to?

PDS Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.

Q: Is PDS Ltd a good quality company?

PDS Ltd is a average quality company, based on a somewhat consistent multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is PDS Ltd undervalued or overvalued?

PDS Ltd appears Fair, as its key valuation ratios are in line with their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 41.35, Historic Median: 30.03. Price to Book, Current: 2.45, Historic Median: 4.36. Price to Sales, Current: 0.32, Historic Median: 0.46. EV to EBITDA, Current: 9.01, Historic Median: 11.19

Q: Is PDS Ltd a good buy now?

PDS 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

Q: Revenue growth of PDS Ltd?

PDS Ltd revenue growth is 21.3% for FY-2025, which is above its 5-year CAGR of 13.6%, indicating faster growth.

Q: Gross Profit margin of PDS Ltd?

PDS Ltd Gross profit margin which is the profit after deduction of direct costs, is 3% for FY-2025, which is below its 5-year median of 3.9%, indicating decreasing margins.

Q: Operating Profit Margin of PDS Ltd?

PDS Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 3.96% for FY-2025, which is in line with its 5-year median of 4.07% indicating stable margins.

Q: Net Profit Margin of PDS Ltd?

PDS Ltd Net Profit Margin is 1.92% for FY-2025, is below its 5-year median of 2.45%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 3, Historic Median: 3.9. Operating Profit Margin (%), Current: 3.96, Historic Median: 4.07. Net Profit Margin (%), Current: 1.92, Historic Median: 2.45

Q: Return on Asset of PDS Ltd?

PDS Ltd Return on Asset is 5.5%, which is below its 5-year historical median of 6.51%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of PDS Ltd?

PDS Ltd Return on capital employed is 17.22% for FY-2025, which is below its 5-year historical median of 19.16%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Check Before You Invest : PDS Ltd

BSE: 538730 NSE: PDSL ISIN: INE111Q01021

| Sector: Miscellaneous | Industry: Trading

Snapshot

Q.1 Which industry/sub-sector does PDS Ltd belong to?

PDS Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.

Q.2 Is PDS Ltd a good quality company?

PDS Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is PDS Ltd undervalued or overvalued?

PDS Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	41.35	30.03
Price to Book	2.45	4.36
Price to Sales	0.32	0.46
EV to EBITDA	9.01	11.19

Q.4 Is PDS Ltd a good buy now?

PDS 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

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of PDS Ltd?

PDS Ltd revenue growth is 21.3% for FY-2025, which is above its 5-year CAGR of 13.6%, indicating faster growth.

Q.2 Gross Profit margin of PDS Ltd?

PDS Ltd Gross profit margin which is the profit after deduction of direct costs, is 3% for FY-2025, which is below its 5-year median of 3.9%, indicating decreasing margins.

Q.3 Operating Profit Margin of PDS Ltd?

PDS Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 3.96% for FY-2025, which is in line with its 5-year median of 4.07% indicating stable margins.

Q.4 Net Profit Margin of PDS Ltd?

PDS Ltd Net Profit Margin is 1.92% for FY-2025, is below its 5-year median of 2.45%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	3	3.9
Operating Profit Margin (%)	3.96	4.07
Net Profit Margin (%)	1.92	2.45

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of PDS Ltd?

PDS Ltd Return on Asset is 5.5%, which is below its 5-year historical median of 6.51%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of PDS Ltd?

PDS Ltd Return on capital employed is 17.22% for FY-2025, which is below its 5-year historical median of 19.16%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.7 Return on Equity (ROE) of PDS Ltd?

PDS Ltd Return on equity is 17.59% for FY-2025, which is below its 5-year historical median of 25.27%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of PDS Ltd?

PDS Ltd Cash conversion cycle is 17 days, above its 5-year historical median of 7 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	2.87	2.9
ROE (%)	17.59	25.27
ROCE (%)	17.22	19.16
Cash Conversion Cycle	17 days	7 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of PDS Ltd?

PDS Ltd Debt-to-Equity ratio is 0.69, which is above the industry average of 0.03, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of PDS Ltd?

PDS Ltd Debt to cash flow from operations is -30.4, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of PDS Ltd?

Q.1 Promoter shareholding and pledge status of PDS Ltd?

Promoters hold 61.37% of the PDS Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does PDS Ltd performance compare with that of its Peers?

Q.1 Revenue growth of PDS Ltd vs industry peers?

PDS Ltd revenue CAGR is 13.60%, compared to the industry median CAGR of 0%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	21.3	-
Gross Profit Growth (%)	18.8	17.9
Operating Profit Growth (%)	16.7	16.4
Net Profit Growth (%)	18.7	17.3

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	2.87	0.52
ROE (%)	17.59	2.05
ROCE (%)	17.22	3.6
Cash Conversion Cycle (days)	17.13	46

Valuation & price assessment

Q.1 Stock return of PDS Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 24.2% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	24.2%	15.6%	-6.8%	-25.8%

Q.2 Valuation ratios of PDS Ltd vs historical?

The current P/E ratio of 41.35 is higher than its historical median of 30.03, indicating that the stock is trading above its historical average valuation.

Q.3 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	41.35	30.03	33.62
Price to Book	2.45	4.36	1.57
Price to Sales	0.32	0.46	2.21
EV to EBITDA	9.01	11.19	14.09

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Check Before You Invest : PDS Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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