Pearl Global Industries Limited

Consumer Cyclical — Apparel Manufacturing · NSE

₹1,295.00+₹31.70 (+2.51%)

DalalBaazaar Score

65 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

The 60-second version of Pearl Global Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Pearl Global Industries Limited, together with its subsidiaries, manufactures and sells readymade garments in India and internationally.

IndustryApparel Manufacturing

SectorConsumer Cyclical

Employees10,256

Annual revenue₹4,944 Cr

How does it make money?

Turns over ₹4,944 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation. Each of its 10,256 employees supports ₹48.2 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹48.2 lakh

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 20.1%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 19.0% against a peer median of 25.9% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE25.9%

What is the outlook?

8 analysts covering the stock expect revenue to grow about 14.5% and earnings to grow about 30.4% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+14.5%

Est. earnings growth+30.4%

Analysts8

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +62% while net margin moved +15% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+62%

Margin effect+15%

DalalBaazaar Score

65/ 100

Good

Weighted across six categories. Every point is explained below.

• P/E of 38.6x already prices in growth
✗ P/E is 165% above its own historical median of 14.6x — expensive by its own standards
✗ P/B of 8.19x is a steep premium to book

Quality vs. Valuation

Company Quality

73/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

41/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

38.6x

3Y Median

14.6x

40 monthly readings · mean 14.0x · range 5.8x–21.5x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 165% above its 3y median of 14.6x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 44% below the peer median of 69.2x.

vs. its own history

Expensive

14.6x median over 40 months · +165%

vs. sector peers

Cheap

69.2x median of 4 peers · -44%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

26.7x

PEG

1.68

What's Good / What's Bad

🟢 What's Going Well2

High return on capital employed
ROCE of 20.1% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 22.3% to 20.1% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 69% over 3 years, from ₹558 Cr to ₹943 Cr.
🟡Receivables growing faster than salesFinancial
Receivables up 95% against revenue up 62% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 20.1% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Cheaper than its peers
It trades 44% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 95% against revenue up 62%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
The price already assumes success
The stock trades 165% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 13% a year✓ 17.5% CAGR
Latest reported year was 24.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 7%✓ 9.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✓ ₹207 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 17%✓ 20.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✗ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 4 neutral · 1 weak

Market Cap

₹11,963 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

38.6x

Fair

Fairly valued against the generic band

P/B Ratio

8.19x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹33.54

Profitable

Profitable on a per-share basis

ROE

19.0%

Strong

Strong capital efficiency

ROCE

20.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.66x

Moderate

Moderate leverage

Revenue Growth (YoY)

24.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

48.5%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.56%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹207 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

24.3x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

9.0%

Average

Average margins

Net Margin

5.8%

Average

Average bottom-line conversion

Current Ratio

1.60

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.03

Defensive

Steadier than the market

52W Range Position

91%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

1267.4 / 1215.4

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

42.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹3,051 Cr	₹3,380 Cr	₹4,415 Cr	₹4,944 Cr	+17.5%
EBITDA	₹256 Cr	₹317 Cr	₹386 Cr	₹457 Cr	+21.4%
EBITDA Margin	8.4%	9.4%	8.8%	9.2%	—
PAT (Net Profit)	₹149 Cr	₹175 Cr	₹248 Cr	₹278 Cr	+23.0%
EPS	₹34.4	₹40.05	₹52.87	₹60.16	+20.5%
ROE	20.7%	21.8%	21.5%	19.0%	—
ROCE	22.3%	23.0%	21.8%	20.1%	—
Total Debt	₹558 Cr	₹588 Cr	₹773 Cr	₹943 Cr	+19.1%
Free Cash Flow	₹277 Cr	₹223 Cr	₹57 Cr	₹207 Cr	-9.2%

🟢 Revenue has grown at 17.5% a year over 3 years.

🟢 EBITDA has grown at 21.4% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 9.2% over 3 years.

🟢 PAT (Net Profit) has grown at 23.0% a year over 3 years.

🟢 EPS has grown at 20.5% a year over 3 years.

🔴 ROE has fallen from 20.7% to 19.0% over 3 years (-1.6 pts).

🔴 ROCE has fallen from 22.3% to 20.1% over 3 years (-2.1 pts).

🔴 Total Debt has grown at 19.1% a year over 3 years.

🔴 Free Cash Flow has shrunk at 9.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3,245 Cr

Total Liabilities

₹1,807 Cr

Cash & Equivalents

₹704 Cr

Operating Cash Flow

₹398 Cr

Capex

-₹191 Cr

Shareholding (proxy)

Institutional Holding

24.8%

Insider Holding

60.3%

Corporate Actions

Dividend Rate

₹7.25

Ex-Dividend Date

21 May 2026

Analyst Consensus

Recommendations

7 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹1,450.61

+12.0% vs CMP

Target Range

₹1,039.5 – ₹1,801

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

3 positive1 mixed2 general

Pearl Global Industries (NSEI:PGIL) Stock Forecast & Analyst Predictions

Simply Wall Street, 09 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Pearl Global: This multibagger textile stock gets back-to-back target price upgrades—should investors buy now?

Livemint, 14 OctAnalyst view

🟢Potentially positiveAn analyst opinion changing, which moves the price without changing the business.

Pearl Global Industries soars 15% in 2 days, hits new high; here's why

Business Standard, 23 Sept

Pearl Global Industries Ltd Dividend History, Yield & Record Date

INDmoney, 09 OctCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Pearl Global Shares: Multibagger Textile Stock Gets Back-to-Back Target Price Upgrades, Should Investors Buy Now?

Univest, 14 OctAnalyst view

🟢Potentially positiveAn analyst opinion changing, which moves the price without changing the business.

Buy Pearl Global Industries; target of Rs 1400: Emkay Global Financial

Moneycontrol.com, 25 Sept

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Growth · Profitability

MiddlingBusiness Quality · Risk

WeakValuation

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 5 tripwires tripped — Debt / EBITDA stays below 2x · see Key things to watch ↑