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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 532808 | NSE: PGIL

Pearl Global Industries Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 20, 2024, 9:15 pm

Market Cap 5,023 Cr.
Current Price 1,095
High / Low1,149/522
Stock P/E25.1
Book Value 232
Dividend Yield0.80 %
ROCE21.4 %
ROE21.9 %
Face Value 5.00
PEG Ratio0.41

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Pearl Global Industries Ltd

Competitors of Pearl Global Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Haria Exports Ltd 6.43 Cr. 5.569.36/3.8758.4 12.20.00 %0.64 %0.64 % 10.0
Haria Apparels Ltd 9.10 Cr. 5.956.80/4.3716.5 3.620.00 %18.6 %18.2 % 10.0
Garment Mantra Lifestyle Ltd 47.4 Cr. 2.364.61/2.2015.6 1.920.00 %7.86 %6.85 % 1.00
Cityman Ltd 30.7 Cr. 26.226.5/14.3 5.490.00 %4.69 %% 10.0
Bindal Exports Ltd 11.9 Cr. 25.825.8/16.128.3 22.10.00 %6.61 %2.96 % 10.0
Industry Average5,284.89 Cr1,803.3353.80141.680.19%12.96%15.23%7.28

All Competitor Stocks of Pearl Global Industries Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales4366817008968518607177308949617048771,053
Expenses418641657856784808644667811883639796954
Operating Profit18404340675273638377658198
OPM %4%6%6%4%8%6%10%9%9%8%9%9%9%
Other Income812318471237731415
Interest1291313161618162024172223
Depreciation12131213121213141416161917
Profit before tax2302132443244565846355473
Tax %131%15%21%11%16%19%16%5%18%14%2%10%15%
Net Profit-1261728362637534739344962
EPS in Rs0.045.663.786.268.425.347.7111.9911.109.168.2011.7814.99

Last Updated: October 17, 2024, 4:33 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: October 17, 2024, 4:33 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales3,8204,6991,0241,3931,5381,4961,7581,6851,4912,7143,1583,4363,595
Expenses3,7274,6409741,3331,4651,4501,6571,6031,4242,5552,8833,1113,272
Operating Profit9359506173461008267159275325323
OPM %2%1%5%4%5%3%6%5%4%6%9%9%9%
Other Income17602424304751443637343140
Interest344023213538435347618210087
Depreciation27291617192326424448516468
Profit before tax49513447493283311186176192208
Tax %38%13%29%23%15%29%19%30%-54%18%13%12%
Net Profit30442437422367221770153169184
EPS in Rs5.498.925.798.479.385.5615.544.983.9915.7434.4740.1144.13
Dividend Payout %9%11%19%18%16%18%10%0%0%16%11%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)46.67%-45.45%54.17%13.51%-45.24%191.30%-67.16%-22.73%311.76%118.57%10.46%
Change in YoY Net Profit Growth (%)0.00%-92.12%99.62%-40.65%-58.75%236.54%-258.47%44.44%334.49%-193.19%-108.11%

Pearl Global Industries Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:-3%
5 Years:14%
3 Years:32%
TTM:16%
Compounded Profit Growth
10 Years:15%
5 Years:27%
3 Years:172%
TTM:27%
Stock Price CAGR
10 Years:26%
5 Years:68%
3 Years:87%
1 Year:80%
Return on Equity
10 Years:11%
5 Years:13%
3 Years:19%
Last Year:22%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 7:54 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital22222222222222222222222223
Reserves5926742963233593734484794965777017801,040
Borrowings506605167217253315333463440645558588664
Other Liabilities610609250264282226298288339538501595616
Total Liabilities1,7301,9107348259169371,1001,2521,2961,7811,7811,9862,342
Fixed Assets328372213210256274338422390448500612643
CWIP3153111688364715333540
Investments264211191337333855556030169
Other Assets1,3731,4815075856306177227568041,2631,1881,3091,490
Total Assets1,7301,9107348259169371,1001,2521,2961,7811,7811,9862,342

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-58432251533756495-92365352
Cash from Investing Activity +-34-82-55-22-49-58-59-85-26-40-26-128
Cash from Financing Activity +40692241131-1415-62153-200-152
Net Cash Flow171-2027-2362-672213972

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-413.00-546.00-117.00-156.00-180.00-269.00-233.00-381.00-373.00-486.00-283.00-263.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days735243503835464859492428
Inventory Days352911980939399119133131115108
Days Payable5746113825148768211710688105
Cash Conversion Cycle523549488079698576745232
Working Capital Days574757555457657590854841
ROCE %9%8%6%12%13%10%14%10%5%12%19%21%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Jul 2024
Promoters66.58%66.58%66.58%66.58%66.58%66.58%66.58%66.58%66.23%66.19%66.17%63.21%
FIIs5.81%5.66%5.59%5.33%5.25%5.17%5.03%5.30%5.25%5.45%5.39%4.74%
DIIs1.20%1.43%1.45%1.29%1.22%1.24%1.05%0.50%0.43%0.49%0.61%5.69%
Public26.40%26.32%26.37%26.79%26.95%27.01%27.32%27.61%28.09%27.87%27.84%26.35%
No. of Shareholders13,60013,47713,50213,73613,61913,40013,83914,77617,07116,31419,28421,431

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Tata Multicap Fund307,7970.8428.31307,7972024-11-160%
Franklin India Balanced Advantage Fund102,7000.419.45307,7972024-11-16-66.63%
Franklin India Equity Hybrid Fund102,6990.469.45307,7972024-11-16-66.63%
Franklin India Pension Plan - Dividend34,1990.63.15307,7972024-11-16-88.89%
Franklin India Pension Plan - Growth34,1990.63.15307,7972024-11-16-88.89%
Franklin India Debt Hybrid Fund - Plan A3,0000.130.28307,7972024-11-16-99.03%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue5.0010.0010.0010.0010.00
Basic EPS (Rs.)40.2668.9031.467.979.95
Diluted EPS (Rs.)40.0568.7931.467.979.95
Cash EPS (Rs.)53.5394.0654.6728.4329.44
Book Value[Excl.RevalReserv]/Share (Rs.)187.56342.86283.82244.72237.05
Book Value[Incl.RevalReserv]/Share (Rs.)187.56342.86283.82244.72237.05
Revenue From Operations / Share (Rs.)788.401457.911252.56688.21777.85
PBDIT / Share (Rs.)78.05128.4880.3438.8053.53
PBIT / Share (Rs.)63.32105.0558.0218.4434.13
PBT / Share (Rs.)44.0781.1739.615.2414.42
Net Profit / Share (Rs.)38.8070.6232.368.0710.03
NP After MI And SOA / Share (Rs.)40.1168.8928.697.979.95
PBDIT Margin (%)9.898.816.415.636.88
PBIT Margin (%)8.037.204.632.674.38
PBT Margin (%)5.585.563.160.761.85
Net Profit Margin (%)4.924.842.581.171.28
NP After MI And SOA Margin (%)5.084.722.291.151.27
Return on Networth / Equity (%)21.7920.6510.373.334.30
Return on Capital Employeed (%)25.0323.6114.455.1510.00
Return On Assets (%)8.808.383.491.331.72
Long Term Debt / Equity (X)0.120.120.200.240.19
Total Debt / Equity (X)0.550.620.940.620.71
Asset Turnover Ratio (%)1.820.860.860.760.90
Current Ratio (X)1.451.421.371.471.38
Quick Ratio (X)0.870.790.770.920.86
Inventory Turnover Ratio (X)3.041.561.711.161.49
Dividend Payout Ratio (NP) (%)27.9610.880.000.0030.13
Dividend Payout Ratio (CP) (%)20.458.120.000.0010.21
Earning Retention Ratio (%)72.0489.120.000.0069.87
Cash Earning Retention Ratio (%)79.5591.880.000.0089.79
Interest Coverage Ratio (X)4.084.273.732.042.76
Interest Coverage Ratio (Post Tax) (X)3.043.142.361.121.53
Enterprise Value (Cr.)2448.251060.391355.13585.78498.70
EV / Net Operating Revenue (X)0.710.330.490.390.29
EV / EBITDA (X)7.203.817.796.974.30
MarketCap / Net Operating Revenue (X)0.680.280.340.240.14
Retention Ratios (%)72.0389.110.000.0069.86
Price / BV (X)2.941.231.540.700.47
Price / Net Operating Revenue (X)0.680.280.340.240.14
EarningsYield0.070.160.060.040.09

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Pearl Global Industries Ltd as of November 21, 2024 is: 1,285.48

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 21, 2024, Pearl Global Industries Ltd is Undervalued by 17.40% compared to the current share price 1,095.00

Intrinsic Value of Pearl Global Industries Ltd as of November 21, 2024 is: 2,078.82

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 21, 2024, Pearl Global Industries Ltd is Undervalued by 89.85% compared to the current share price 1,095.00

Last 5 Year EPS CAGR: 61.72%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (549.08 cr) compared to borrowings (442.62 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (1.92 cr) and profit (80.69 cr) over the years.
  1. The stock has a low average ROCE of 11.58%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 60.92, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 60.92, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Pearl Global Industries Ltd:
    1. Net Profit Margin: 4.92%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 25.03% (Industry Average ROCE: 12.96%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 21.79% (Industry Average ROE: 14.18%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 3.04
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.87
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 25.1 (Industry average Stock P/E: 38.96)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.55
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Pearl Global Industries Ltd. is a Public Limited Listed company incorporated on 05/07/1989 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L74899DL1989PLC036849 and registration number is 036849. Currently Company is involved in the business activities of Manufacture of wearing apparel, except fur apparel. Company’s Total Operating Revenue is Rs. 933.77 Cr. and Equity Capital is Rs. 21.66 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Textiles - Readymade ApparelsC-17/1, Paschimi Marg, New Delhi Delhi 110057investor.pgil@pearlglobal.com
http://www.pearlglobal.com
Management
NamePosition Held
Mr. Deepak SethChairman
Mr. Pulkit SethVice Chairman
Mr. Pallab BenerjeeManaging Director
Mr. Shailesh KumarWhole Time Director
Mr. Deepak KumarWhole Time Director
Mrs. Shifalli SethNon Executive Director
Mr. Abhishek GoyalIndependent Director
Mrs. Madhulika BhupatkarIndependent Director
Ms. Neha KhannaIndependent Director
Dr. Rajiv KumarIndependent Director
Mr. Sanjay KapoorIndependent Director
Mr. Ashwini AgarwalIndependent Director

FAQ

What is the latest intrinsic value of Pearl Global Industries Ltd?

The latest intrinsic value of Pearl Global Industries Ltd as on 21 November 2024 is ₹1285.48, which is 17.40% higher than the current market price of ₹1,095.00.

What is the Market Cap of Pearl Global Industries Ltd?

The Market Cap of Pearl Global Industries Ltd is 5,023 Cr..

What is the current Stock Price of Pearl Global Industries Ltd as on 21 November 2024?

The current stock price of Pearl Global Industries Ltd as on 21 November 2024 is ₹1,095.

What is the High / Low of Pearl Global Industries Ltd stocks in FY 2024?

In FY 2024, the High / Low of Pearl Global Industries Ltd stocks is 1,149/522.

What is the Stock P/E of Pearl Global Industries Ltd?

The Stock P/E of Pearl Global Industries Ltd is 25.1.

What is the Book Value of Pearl Global Industries Ltd?

The Book Value of Pearl Global Industries Ltd is 232.

What is the Dividend Yield of Pearl Global Industries Ltd?

The Dividend Yield of Pearl Global Industries Ltd is 0.80 %.

What is the ROCE of Pearl Global Industries Ltd?

The ROCE of Pearl Global Industries Ltd is 21.4 %.

What is the ROE of Pearl Global Industries Ltd?

The ROE of Pearl Global Industries Ltd is 21.9 %.

What is the Face Value of Pearl Global Industries Ltd?

The Face Value of Pearl Global Industries Ltd is 5.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Pearl Global Industries Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE