₹47 to ₹1,435: This multibagger textile stock turns ₹1 lakh into ₹31 lakh in 6 years

Multibagger Small-cap stock: In the fast-paced world of investing, finding a multibagger stock that delivers extraordinary returns within a short period is the dream of every investor. This dream turned into reality for investors in Pearl Global Industries, as the company's shares delivered a phenomenal return.

Five years ago, the shares were trading at ₹60 apiece. Since then, they have surged 2,291% to the current market price of ₹1,435. Over the last six years, the stock has skyrocketed by nearly 3,000% as it rallied from ₹47 to the current price.

This remarkable performance is reflected in its consistent yearly gains. In CY23, the stock delivered a whopping 217% return, following a 17% gain in CY22 and an impressive 74% surge in CY21. Looking further back, it gained 29% in CY20 and 15% in CY19. In the current year, the stock is down just 3%, significantly outperforming the Nifty Smallcap 100 index, which has declined by 20%.

If an investor had invested ₹1 lakh in the stock six years ago and held onto it, their wealth would have grown to a staggering ₹31 lakh, showcasing the stock market’s potential to multiply wealth when the right investments are made.

Pearl Global Industries specialises in the design, manufacturing, and distribution of apparel, offering an extensive product range that includes denim, casual and formal wear, knits, woven garments, and bottoms for men, women, and children.

It is the only listed India-based Ready-Made Garment (RMG) manufacturer with a diversified production base across Bangladesh, India, Vietnam, Indonesia, and Guatemala. The company has strategic partnerships with key global retailers such as GAP, Kohl’s, Inditex, PVH, Macy’s, Ralph Lauren, Old Navy, Muji, and Talbots, among others.

Financial Performance

The company reported a 45.3% YoY increase in revenue for Q3 FY25, reaching ₹1,022.5 crore, while 9M FY25 revenue grew by 28.1% YoY to ₹3,277.2 crore. This strong growth was driven by higher sales volumes across geographies.

Adjusted EBITDA growth remained in line with revenue growth, with Q3 FY25 Adjusted EBITDA rising 35.1% YoY to ₹92.6 crore, and 9M FY25 Adjusted EBITDA increasing 25.5% YoY to ₹291.8 crore. 

In Bangladesh, the company said that operations continued their robust performance in Q3 FY25. With a strong order book, management is confident of sustained growth in the coming quarters. All factories are operating at optimum utilization, and the company is actively exploring value-accretive capacity expansion opportunities, as per the company's earnings filing. 

Strategic Positioning

While India’s role in the RMG trade is expanding, countries like Bangladesh and Vietnam remain significant players due to their established ecosystems. Analysts said that the company's global multi-country presence allows it to leverage India’s growth story while benefiting from cost advantages and capabilities in other regions.

Going forward analysts believe that the company is well-positioned to capture market share in the fragmented Indian RMG export market. 

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.