Multibagger: Pearl Global Industries stock zooms 220% in 6 months; up 737% in 3 years
Over the last six months, the stock has seen a significant increase in value, climbing from ₹438 apiece to ₹1,404, generating a return of 220%.
Pearl Global Industries shares have been performing exceptionally well on Dalal Street, rewarding their shareholders massively in a relatively short period of time. In just three months, the stock more than doubled investors' wealth by delivering a return of nearly 121%.
Over the last six months, the stock has seen a significant increase in value, climbing from ₹438 apiece to ₹1,404, generating a return of 220%. This recent rally in the stock has resulted in a massive return of 358% in the last two-year period and 737% in the last three years. In addition, from its CY20 low of ₹82.50, the stock has skyrocketed 1600% to date.
Impressively, since its listing in CY12, the stock has closed only two years with negative returns. The current year has been outstanding, with the stock surging by 239% so far, marking its most substantial yearly gain since its listing.
Established in 1989, Pearl Global is a vendor to most leading global brands, offering total supply chain solutions to customers. The company’s product range includes denims, casual wears, formal wear, knits, wovens, and bottoms across men’s, women’s, and children’s wear segments.
It caters to a diverse range of customers, from high-end fashion brands to large retailers and mass-market brands. The company has a diversified and de-risked manufacturing base across India, Indonesia, Bangladesh, and Vietnam, along with an office set up in Spain for marketing purposes.
With a total capacity to manufacture around 80 million garments per year, Pearl Global generates more than 61% of its revenue from exports to the United States, serving premium retailers like GAP, Kohl’s, Macy’s, Walmart, Nordstrom, Ann Taylor, Chico’s, and Target Australia, among others.
As per a report by IMARC, the Indian textile and apparel industry achieved a market size of $172.3 billion in 2022 and will continue to expand at a CAGR of 14.59% from 2023 to 2028, with a forecasted market value of $387.3 billion in 2028.
This impressive growth is attributed to various factors, including the increasing demand for high-quality clothing and footwear, the government’s implementation of schemes to empower weavers, and the rising popularity of ethically sourced sustainable materials.
Meanwhile, in the recent Union Budget 2023–24, the grant for Pradhan Mantri Mega Integrated Textile Region was raised to ₹200 crore from ₹3 crore earlier.
In FY23, the company recorded a 16.4% YoY increase in revenue and an 81.8% YoY increase in EBITDA. This can be attributed to the company’s improved operational efficiencies, integration of the Alpha unit in Bangladesh, better product mix, and higher profitability in Vietnam and Bangladesh.
The company aims at achieving a 15%–20% CAGR in revenue over the next 3–4 years and at least maintaining a margin of 7%–8% in the short term for the current financial year and improvement thereafter, according to the company's FY23 annual report.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
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