Pearl Global Industries Ltd Stock Analysis

BSE: 532808 | NSE: PGIL | Textile | Small Cap

BSE Share Price 31-Jan-2023 18:03
379.05 15.10 (4.15%)

DeciZen - Make an Informed Decision on Pearl Global Inds.

Overall Rating

1. Quality

2. Valuation

Somewhat overvalued

3. Price Trend

Pearl Global Inds. Price Chart

P/E Ratio ( SA) :
21.24
Market Cap :
821.2 Cr.
52-wk low :
327.3
52-wk high :
615.1
Bole Toh?

1. Is Pearl Global Industries Ltd a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that Pearl Global Industries Ltd is a below average quality company.

2. Is Pearl Global Industries Ltd undervalued or overvalued?

The key valuation ratios of Pearl Global Industries Ltd's currently when compared to its past seem to suggest it is in the Somewhat overvalued zone.

3. Is Pearl Global Industries Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Pearl Global Industries Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Pearl Global Inds.:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Pearl Global Industries Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good

Value Creation

Value Creation Index Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 4.3%8.1%4.1%4.4%2.8%-0.1%6%2.7%0.9%6.6%-
Value Creation Index -0.7-0.4-0.7-0.7-0.8-1.0-0.6-0.8-0.9-0.5-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 5586636247688587118408257719341,176
YoY Gr. Rt. %-19%-6%23.1%11.7%-17.2%18.2%-1.8%-6.5%21.1%-
Adj EPS 3.49.50.92.3-1.4-8.56.3-2.6-6.37.817.9
YoY Gr. Rt. %-178%-90.2%145.2%-159.2%NANA-141.9%NANA-
BVPS (₹) 166.6128130130.4140.4137.8146141.2144.8158.6157.7
Adj Net Profit 7.420.524.9-2.9-18.513.5-5.7-13.61739
Cash Flow from Ops. 8.462.130.732.54.4-33.126.711.841.3-23.3-
Debt/CF from Ops. 13.71.83.94.441.1-77.618.85.2-11.1-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 5.9%1.7%3.6%21.1%
Adj EPS 9.7%NA7.9%NA
BVPS -0.62.52.89.5
Share Price 12.2% 25% 36.8% -26.7%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 2.16.40.71.7-1-6.14.4-1.8-4.45.211.3
Op. Profit Mgn % 4.24.632.20.7-0.25.13.2-0.34.75.2
Net Profit Mgn % 1.33.10.30.6-0.3-2.61.6-0.7-1.81.83.3
Debt to Equity 0.30.40.40.50.60.80.60.70.70.80.2
Working Cap Days 184155162128122159140150170168119
Cash Conv. Cycle 6751493736585562655030

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 11.30%

Debt to equity has declined versus last 3 years average to 0.76

Sales growth is good in last 4 quarters at 41.15%

Sales growth has been subdued in last 3 years 3.58%

Net Profit has been subdued in last 3 years 7.85%

Latest Financials - Pearl Global Industries Ltd.

Standalone Consolidated
TTM EPS (₹) 17.9 47.6
TTM Sales (₹ Cr.) 1,176 3,307
BVPS (₹.) 157.7 289.7
Reserves (₹ Cr.) 320 606
P/BV 2.40 1.33
PE 21.24 8.10
From the Market
52 Week Low / High (₹) 327.25 / 615.05
All Time Low / High (₹) 36.00 / 615.05
Market Cap (₹ Cr.) 821
Equity (₹ Cr.) 21.7
Face Value (₹) 10
Industry PE 23.1

Management X-Ray of Pearl Global Inds. :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Pearl Global Inds.

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

Pearl Global Industries Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Pearl Global Inds. on 31-Jan-2023 18:03 is : 379.1.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 31-Jan-2023 18:03 the market cap of Pearl Global Inds. stood at ₹ 821.2.
The latest PE ratio of Pearl Global Inds. as of 31-Jan-2023 18:03 is 21.24.
The latest PB ratio of Pearl Global Inds. as of 31-Jan-2023 18:03 is 2.40
The 52-week high of Pearl Global Inds. is ₹ 615.0 and the 52-week low is ₹ 327.2.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue / sales of Pearl Global Inds. is ₹ 1,176 ( Cr.) .

About Pearl Global Industries Ltd

Pearl Global Industries, earlier known as House of Pearl Fashions incorporated as Mina Estates Private Limited on July 5, 1989 under the Indian Companies Act, 1956, as amended. The name of the company was subsequently changed to House of Pearl Fashions Private Limited by a special resolution of the shareholders of the company at an extraordinary general meeting held on May 9, 2006. The fresh certificate of incorporation consequent upon the change of name was granted on June 19, 2006, by the Registrar of Companies (RoC), Delhi and Haryana, located at New Delhi. The company became a public limited company pursuant to a special resolution of the shareholders of the company at an extraordinary general meeting held on June 28, 2006. Pursuant to this special resolution, the name of the company was changed to House of Pearl Fashions Limited. The certificate of incorporation to reflect the new name was amended on July 31, 2006 by the RoC. In 2012 the company has changed its name from House of Pearl Fashions Ltd. to Pearl Global Industries Ltd.                                         "

House of Pearl Fashions is a multinational ready to wear apparel manufacturing conglomerate. The company also provides supply chain solutions for the fashion industry globally along with warehousing and distribution networks in the UK and the US. They currently operate in 11 strategic locations and six continents, leveraging the strengths of each country in creating a strong value for its clients. They provide global supply chain solutions for the fashion industry. They have a complete control on the entire value chain from design and development, manufacturing or sourcing till offering a range of pre-retailing services, warehousing and delivering at the door step on a call off basis. On October 24, 2000, pursuant to a scheme of merger approved by the Delhi High Court, the company acquired the properties, rights and claims of Seth Real Estates, Passion Estates, India Watch Company, Atlanta Estates, Pearl Housing (India) and J R Apparel and the Transferor Companies merged with and into the company effective April 1, 1999. They have teams of international designers working in New York, Los Angeles, London, Hong Kong and India, who are constantly looking at the latest fashion trends, exchanging ideas and feeding design inputs to all its offices across the globe. They manage two brands Kool Hearts, DCC in the United States of America. The brand Kool Hearts focuses on the young fashion, whereas the focus of DCC is more towards Missy segment.

Milestones:

1987 -

  • Pearl Global started operations

1994 -

  • Pearl Global lists at the BSE, NSE, DSE and ASE

1998 -

  • Establishment of international presence with incorporation of Norwest Industries in Hong Kong

2002 -

  • PT Norwest, Indonesia started production setting up of sourcing office in China
  • Setting up of sourcing office in China

2004 -

  • The company acquired import and distribution businesses in the US.and the UK and also consolidated overseas entities

2005 -

  • Setting up of sourcing office in Bangladesh
  • Nor Pearl and Norp Knit, subsidiaries in Bangladesh commenced operations

2006 -

  • Reorganization of group companies and consolidation of operations under House of Pearl Fashions Limited
  • HoP (US), new subsidiary incorporated in the US.

2007 -

  • The company’s subsidiary signs a Collaboration agreement with DLF Retail Developers Ltd. for development of its real estate property situated on prime location on NH-8, Gurgaon, measuring 9.20 acres.
  • The company’s subsidiary ventures into into real estate, infrastructure and education activities.
  • House of Pearl Fashions announced that it has acquired FX Imports, UK based import and distribution company through is subsidiary Poetiegem UK. FX Imports, is a supplier to the mid market fashion retailer. 
  • House of Pearl Fashions has bagged orders for $ 7.5 million, Rs 30 crore approx., from US buyers, including JC Penney/H & M/GAAP/KOHLS. This is a substantial growth over the last financial year, as these orders are equal to the entire year of sales for this division. 

2008 -

  • House of Pearl Fashions has through Multinational Textiles Group, Mauritius, a wholly-owned subsidiary of the company, entered into a Share Purchase Agreement for acquisition of 38% of ordinary shares of Nam Long Garment Joint Stock Company, Vietnam.
  • Multinational Textiles Group, Mauritius, a wholly-owned subsidiary of our company, has entered into an agreement for purchase of 1,87,500 ordinary shares of Re 1 each (being 75% of the issued ordinary shares) and 31,90,000 redeemable preference shares of Re 1 each (being 100% of issued preference shares) of simple approach, Hong Kong.

2009 -

  • House of Pearl Fashions’ subsidiary company, Nor Pearl Knitwear, Bangladesh, is in the process of restructuring its business due to problems it has faced in executing orders for the past 3-4 months. This entails in a temporary closure of its manufacturing facility till June 30, 2009, located at Comilla Export Processing Zone, Comilla, Bangladesh. The management will in due course review its decision of closure of factory. 
  • House of Pearl Fashions through its subsidiary, House of Pearl Fashions (US) has signed a Multi-Year License Agreement with Geoffrey Beene, LLC for Mens's Casual Slacks, Casual Shorts and Dress Slacks under Geoffrey Beene Label. 

Products:

  • Men's Wear 
  • Women's Wear 
  • Kids Wear

Business Divisions:

  • Design and development - Over 30 designers working across the group constantly provide latest design inputs on latest design trends internationally and presentation of product ideas from across the globe gives the buyer a sense of cross-country styles of trends. It has got dedicated fabric development and sampling unit in China and India.
  • Manufacturing - It is currently operating ten modern ready to wear apparel manufacturing facilities, of which seven are located in India, two in Bangladesh and one in Indonesia.
  • Sourcing - Hong Kong is one of the biggest hubs for garment sourcing across the world.
  • Marketing - It has integrated marketing and merchandising teams in Canada, Europe, HK, UK, and US, closely interacting with existing and potential customers at their doorstep.
  • Logistics and warehousing - The company has warehousing, logistics and distribution infrastructure in the UK and the US. It also offers services such as - logistics and transportation, garment processing, Ironing and storage, quality control and reverse logistics.

Subsidiaries:

India

  • Pearl Global, North India
  • Pearl Global, South India

Bangladesh

  • Norp Knit Industries
  • Nor-Pearl Knitwear
  • Norwest Industries

UK

  • Poeticgem
  • Pacific Logistics

Canada

  • Poeticgem, Canada 

Hong Kong

  • Norwest Industries
  • Norwest Industries, simple approach

China

  • Norwest Industries

USA

  • Depa International Inc., New York
  • House of Pearl Fashions US
  • Depa International Inc., New Jersey

Indonesia

  • PT Norwest Industries

Clients:

  • Walmart
  • TESCO
  • Banana Republic
  • NEXT
  • LeeCooper
  • Primark
  • Springfield
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