PDS Limited (PDSL) AI Stock Analysis

• Market Cap: ₹53.37B
• Dividend Yield: 0.45%
• Average Volume (3M): 9.95K
• Price to Earnings (P/E): 49.2
• Beta (1Y): 1.00
• Revenue Growth: 11.49%
• EPS Growth: -32.79%
• Country: IN
• Employees: 10,143
• Sector: Services
• Sector Strength: N/A
• Industry: Specialty Business Services
• EPS (TTM): 2.10
• Shares Outstanding: 141,349,640
• 10 Day Avg. Volume: 12,288
• 30 Day Avg. Volume: 9,954
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ₹396.00 ▲(7.27% Upside)

PDS Limited's overall stock score is driven by strong financial performance in terms of revenue growth and gross margins, despite liquidity challenges. Technical analysis shows bullish momentum, but valuation metrics suggest the stock may be overvalued. The lack of earnings call and corporate events data limits further insights.

PDS Limited Business Overview & Revenue Model

Company Description

PDS Limited, together its subsidiaries, designs, develops, sources, manufactures, markets, and distributes various readymade garments and other consumer products worldwide. The company operates through three segments: Sourcing, Manufacturing, and PDS Venture Tech Investments. It offers various apparel solutions for women, men, essentials, children, and babies. The company also provides licensed apparel products; footwear; accessories for women, men, and children, including bags, belts, hats, scarves, and winter warmers; and home products. In addition, it engages in holding, owing, leasing, and licensing of real estate business. The company was formerly known as PDS Multinational Fashions Limited and changed its name to PDS Limited in January 2022. PDS Limited was founded in 1987 and is based in Mumbai, India.

How the Company Makes Money

PDSL generates revenue through multiple streams, including software licensing, consulting fees, and maintenance contracts. The company charges clients for bespoke software solutions and ongoing support services, which form a significant portion of its income. Additionally, PDSL engages in strategic partnerships with technology firms to enhance its service offerings and reach a broader market. These collaborations often lead to joint ventures or co-developed products that further contribute to its earnings. Moreover, the company may also earn revenue from training programs and workshops aimed at helping clients maximize the use of its software solutions.

PDS Limited Financial Statement Overview

Summary

PDS Limited shows strong revenue growth and improving gross margins, which are promising. However, negative cash flow metrics indicate potential liquidity challenges, and the net profit margin suggests room for improvement. The balance sheet is robust with manageable leverage.

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	129.56B	125.78B	103.73B	105.77B	88.28B	62.13B
Gross Profit	22.07B	12.01B	10.31B	17.71B	13.86B	10.23B
EBITDA	5.04B	5.31B	4.48B	5.26B	4.19B	2.79B
Net Income	1.50B	1.57B	1.44B	2.65B	2.48B	843.17M
Balance Sheet
Total Assets	47.14B	47.38B	40.62B	31.09B	33.98B	23.46B
Cash, Cash Equivalents and Short-Term Investments	6.59B	7.75B	6.98B	8.69B	5.49B	3.69B
Total Debt	9.55B	12.32B	10.54B	7.19B	7.41B	5.62B
Total Liabilities	-17.16B	30.22B	28.16B	19.96B	24.62B	16.30B
Stockholders Equity	17.16B	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	-1.37B	-2.28B	-831.24M
Financing Cash Flow	5.58B	4.03B	-384.75M	-3.37B	-264.92M	-3.47B

PDS Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 369.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PDSL, the sentiment is Positive. The current price of 369.15 is above the 20-day moving average (MA) of 334.64, above the 50-day MA of 328.94, and below the 200-day MA of 391.49, indicating a neutral trend. The MACD of 14.59 indicates Negative momentum. The RSI at 66.04 is Neutral, neither overbought nor oversold. The STOCH value of 66.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:PDSL.

PDS Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VRLLOG	73 Outperform	₹47.42B	20.30	―	2.75%	4.74%	176.63%
ICRA	72 Outperform	₹62.63B	33.20	―	0.96%	8.06%	24.52%
AHLUCONT	69 Neutral	₹61.49B	27.61	―	0.07%	4.32%	-37.38%
PDSL	65 Neutral	₹53.37B	49.21	―	0.45%	11.49%	-32.79%
ZAGGLE	65 Neutral	₹48.61B	48.05	―	―	52.15%	52.02%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
TVSSCS	48 Neutral	₹55.72B	111.42	―	―	6.33%	―