PDS Limited (PDSL) AI Stock Analysis

• Market Cap: ₹45.62B
• Dividend Yield: 1.04%
• Average Volume (3M): 9.59K
• Price to Earnings (P/E): 29.7
• Beta (1Y): 1.07
• Revenue Growth: 19.10%
• EPS Growth: -1.73%
• Country: IN
• Employees: 10,143
• Sector: Services
• Sector Strength: N/A
• Industry: Specialty Business Services
• EPS (TTM): 0.90
• Shares Outstanding: 141,339,630
• 10 Day Avg. Volume: 11,083
• 30 Day Avg. Volume: 9,589
• PEG Ratio: 9.08
• Price to Book (P/B): 3.61
• Price to Sales (P/S): 0.47
• P/FCF Ratio: -46.75
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹360.00
• Price Target Upside: 12.36% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: ₹360.00 ▲(12.36% Upside)

PDS Limited's overall stock score is primarily influenced by its robust financial performance marked by significant revenue growth and improved profitability. However, this is offset by negative cash flow trends, suggesting liquidity risks. The technical analysis indicates bearish momentum, and the valuation shows potential overvaluation concerns. These factors collectively lead to a moderate stock score.

PDS Limited Business Overview & Revenue Model

Company Description

PDS Limited (PDSL) is a diversified company operating across multiple sectors including consumer goods, pharmaceuticals, and industrial solutions. The company is engaged in the manufacturing, distribution, and retail of a wide range of products, catering to both domestic and international markets. PDSL is recognized for its commitment to quality and innovation, delivering solutions that meet the evolving needs of its customers.

How the Company Makes Money

PDS Limited generates revenue through various streams, primarily from the sale of its manufactured goods across its core sectors. In the consumer goods segment, PDSL earns income by producing and selling household products, personal care items, and packaged foods. In the pharmaceutical sector, the company produces and distributes generic and branded medications to healthcare providers and through retail pharmacies. The industrial solutions division contributes to revenue by supplying machinery, equipment, and technical services to businesses. PDSL enhances its earnings through strategic partnerships and joint ventures, expanding its market reach and leveraging shared resources. Additionally, the company may engage in licensing agreements and consultancy services that add to its revenue base.

PDS Limited Financial Statement Overview

Summary

PDS Limited exhibits strong revenue growth and improving gross margins, signaling effective cost management. However, concerning cash flow challenges with negative operating and free cash flows in 2025 highlight potential liquidity issues. The balance sheet is solid with modest leverage, but low ROE suggests room for improvement in shareholder returns.

Income Statement

PDS Limited has demonstrated strong growth and profitability. The company showed a remarkable revenue growth rate, particularly from 2024 to 2025 with over 21% increase. Gross profit margin improved to approximately 20.1% in 2025, up from 10.0% in 2024, indicating effective cost management. The net profit margin is stable at around 1.25% over recent years. Despite a dip in EBIT margin from 3.8% in 2023 to 2.8% in 2024, there's a recovery to 2.8% in 2025. EBITDA margin remains steady at around 3.6%. Overall, PDS Limited's revenue growth and improving gross margins are significant strengths, although the net profit margin indicates room for improvement.

Balance Sheet

PDS Limited's balance sheet reflects prudent financial management with a modest leverage profile. The debt-to-equity ratio increased to 0.75 in 2025 from 0.90 in 2024, showing improved financial leverage. The equity ratio of 34.8% in 2025 reflects a solid equity base. Return on equity (ROE) is relatively low, at 9.5% in 2025, indicating moderate return on shareholders' equity. The company's growing stockholders' equity and reduced net debt are positive indicators, though the company could benefit from further improving its ROE.

Cash Flow

PDS Limited's cash flow situation presents challenges. The operating cash flow turned negative in 2025, contrasting with positive values in previous years, indicating potential operational cash generation issues. Free cash flow also turned negative in 2025, primarily due to increased capital expenditures. The free cash flow to net income ratio reveals a worrying trend, with negative values in 2025, highlighting pressures on cash flows. The company should focus on improving cash generation to support sustainable growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	125.78B	125.78B	103.73B	105.77B	88.28B	62.13B
Gross Profit	22.35B	25.31B	10.38B	17.71B	13.86B	10.23B
EBITDA	4.89B	4.57B	4.48B	5.26B	4.19B	2.79B
Net Income	1.57B	1.57B	1.44B	2.65B	2.48B	843.17M
Balance Sheet
Total Assets	47.38B	47.38B	40.62B	31.09B	33.98B	23.46B
Cash, Cash Equivalents and Short-Term Investments	7.75B	7.75B	6.08B	8.69B	5.49B	3.69B
Total Debt	12.32B	12.32B	10.54B	7.19B	7.41B	5.62B
Total Liabilities	30.22B	30.22B	28.16B	19.96B	24.62B	16.30B
Stockholders Equity	16.50B	16.50B	11.66B	10.54B	8.72B	6.47B
Cash Flow
Free Cash Flow	-1.93B	-1.28B	229.77M	4.51B	3.58B	3.53B
Operating Cash Flow	-1.40B	-365.52M	1.90B	5.10B	4.03B	3.79B
Investing Cash Flow	-331.59M	-2.58B	-3.14B	-1.64B	-2.28B	-831.24M
Financing Cash Flow	5.58B	4.03B	-384.75M	-3.37B	-218.65M	-3.47B

PDS Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 320.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PDSL, the sentiment is Negative. The current price of 320.4 is below the 20-day moving average (MA) of 357.28, below the 50-day MA of 384.99, and below the 200-day MA of 457.44, indicating a bearish trend. The MACD of -18.22 indicates Positive momentum. The RSI at 10.94 is Positive, neither overbought nor oversold. The STOCH value of 7.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:PDSL.

PDS Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VRLLOG	71 Outperform	₹49.08B	22.36		3.59%	8.04%	221.22%
ICRA	67 Neutral	₹58.89B	33.18		0.99%	10.80%	21.15%
ZAGGLE	65 Neutral	₹50.01B	53.56		―	68.10%	82.40%
AHLUCONT	61 Neutral	₹63.10B	31.22		0.05%	6.31%	-46.09%
Sector *	57 Neutral	$1.60B	-3.70	3.73%	4.29%	5.38%	-37.86%
TVSSCS	55 Neutral	₹58.26B	115.80		―	6.33%	―
PDSL	54 Neutral	₹45.62B	29.71		1.04%	19.10%	-1.73%