Pearl Global Industries Limited (PGIL) AI Stock Analysis

• Market Cap: ₹71.87B
• Dividend Yield: 0.77%
• Average Volume (3M): 4.36K
• Price to Earnings (P/E): 25.4
• Beta (1Y): 1.72
• Revenue Growth: 24.93%
• EPS Growth: 20.57%
• Country: IN
• Employees: 9,116
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Apparel - Manufacturers
• EPS (TTM): 15.90
• Shares Outstanding: 46,088,467
• 10 Day Avg. Volume: 1,886
• 30 Day Avg. Volume: 4,360
• PEG Ratio: 0.68
• Price to Book (P/B): 5.34
• Price to Sales (P/S): 1.37
• P/FCF Ratio: 109.57
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ₹1,594.00 ▼(-1.74% Downside)

Pearl Global Industries' strong financial performance is the most significant factor, supported by robust revenue growth and improving profitability. However, technical indicators suggest caution due to overbought conditions, and the valuation appears stretched with a high P/E ratio. These factors combined result in a moderate overall stock score.

Positive Factors

Revenue Growth

Sustained ~25% revenue growth signals durable demand pull and expanding order book from global customers. Over 2-6 months this supports capacity utilization, scale advantages in sourcing and production, and a stronger base for reinvesting in product development and capabilities.

Margin Sustainability

Consistently healthy gross and operating margins reflect effective cost control, production efficiency and pricing power with customers. Durable margin structure supports free cash generation and resilience to moderate cost inflation over the medium term, benefiting return metrics.

Operating Cash Generation

Positive operating cash flow demonstrates strong conversion of earnings into cash, enabling funding of working capital and capex without immediate equity raises. This underpins long-term sustainability of manufacturing operations and flexibility for strategic investments or debt reduction.

Negative Factors

Rising Debt Levels

A rising debt trend, even from a manageable base, reduces financial flexibility and increases interest expense sensitivity. In a cyclical apparel market higher leverage can constrain the ability to capex, absorb order volatility, or pursue growth initiatives without increasing refinancing risk.

Variable Free Cash Flow / Financing Reliance

Volatile free cash flow and dependence on external financing create execution risk for capex and working-capital cycles. Over several months this can force higher borrowing or equity raises, limiting strategic choices and increasing cost of capital during adverse demand or supply shocks.

Export / Input-Cost and FX Exposure

A business model tied to exports and global retail customers leaves margins exposed to currency swings and volatile fabric, trim, labor and freight costs. Structural sensitivity to FX and commodity inputs can compress margins absent robust hedging or pass-through mechanisms over the medium term.

Pearl Global Industries Limited Business Overview & Revenue Model

Company Description

Pearl Global Industries Limited, together with its subsidiaries, manufactures and exports readymade garments. The company offers knits, woven, and bottoms for men, women, and kids. It also provides supply chain solutions. The company offers its products through retailers in India, the United States, Bangladesh, Indonesia, Hong Kong, Vietnam, Spain, the United Kingdom, rest of Europe, and internationally. In addition, it is involved in the trading of garments through online. The company was formerly known as House of Pearl Fashions Limited. Pearl Global Industries Limited was founded in 1987 and is based in Gurugram, India.

How the Company Makes Money

PGIL generates revenue primarily through the manufacturing and export of garments and textiles. The company's revenue model is largely based on contract manufacturing, where it produces apparel for established brands, thereby earning a margin on the cost of production. Key revenue streams include sales of woven and knitted garments, as well as fabric sales to other manufacturers. Additionally, PGIL may benefit from strategic partnerships with global brands that help secure long-term contracts and provide a stable demand for its products. Factors contributing to its earnings include efficient production processes, a reputation for quality, and an ability to adapt to changing fashion trends and consumer preferences.

Pearl Global Industries Limited Financial Statement Overview

Summary

Pearl Global Industries demonstrates strong financial health with robust revenue growth and improving profitability. The balance sheet is stable, though rising debt levels should be monitored. Cash flows are positive, with strong operational cash generation, though variations in free cash flow and reliance on external financing necessitate careful financial management.

Income Statement

Pearl Global Industries has shown robust revenue growth, with a significant increase in total revenue from 2021 to 2025. The gross profit margin has remained strong, indicating effective cost management. The net profit margin has improved, reflecting enhanced profitability. EBIT and EBITDA margins are healthy, showcasing operational efficiency and solid earnings before interest and taxes. Overall, the income statement reflects a company on a positive growth trajectory with increasing profitability.

Balance Sheet

The company's balance sheet shows a stable financial position with a reasonable debt-to-equity ratio, suggesting manageable leverage levels. The return on equity has been improving, indicating effective use of shareholder funds. The equity ratio is solid, highlighting a good proportion of equity financing. However, the increasing debt levels warrant cautious monitoring to ensure they do not pose significant risk in the future.

Cash Flow

Operating cash flow remains positive, indicating strong cash generation from core business operations. The free cash flow has shown variability, reflecting fluctuating capital expenditures over the years. The ratio of operating cash flow to net income suggests effective conversion of earnings into cash. However, the cash flow from financing activities indicates a reliance on external financing, which could be a potential risk if not managed carefully.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	46.81B	45.06B	34.36B	31.58B	27.14B	14.91B
Gross Profit	21.94B	21.34B	5.78B	15.29B	9.00B	5.61B
EBITDA	4.41B	4.04B	3.17B	3.09B	1.95B	1.02B
Net Income	2.51B	2.48B	1.75B	1.49B	681.46M	172.71M
Balance Sheet
Total Assets	0.00	25.96B	19.85B	17.81B	17.81B	12.94B
Cash, Cash Equivalents and Short-Term Investments	5.66B	5.66B	3.66B	3.00B	1.55B	1.24B
Total Debt	0.00	7.73B	5.88B	5.58B	6.45B	4.40B
Total Liabilities	-11.46B	14.49B	11.68B	10.38B	11.66B	7.64B
Stockholders Equity	11.46B	11.56B	8.02B	7.22B	5.99B	5.17B
Cash Flow
Free Cash Flow	0.00	562.89M	2.23B	2.77B	-1.75B	628.15M
Operating Cash Flow	0.00	1.76B	3.52B	3.65B	-914.98M	946.14M
Investing Cash Flow	0.00	-1.04B	-1.28B	-256.99M	-396.32M	-260.47M
Financing Cash Flow	0.00	1.01B	-1.52B	-2.00B	1.53B	-619.42M

Pearl Global Industries Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1622.20
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PGIL, the sentiment is Positive. The current price of 1622.2 is above the 20-day moving average (MA) of 1481.61, above the 50-day MA of 1575.17, and above the 200-day MA of 1398.39, indicating a neutral trend. The MACD of -30.37 indicates Negative momentum. The RSI at 57.20 is Neutral, neither overbought nor oversold. The STOCH value of 87.94 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:PGIL.

Pearl Global Industries Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PGIL	66 Neutral	₹71.87B	25.41	―	0.77%	24.93%	20.57%
SANGAMIND	64 Neutral	₹22.95B	38.12	―	0.45%	13.88%	-0.56%
ICIL	63 Neutral	₹46.75B	27.31	―	0.74%	10.86%	-47.15%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
JINDWORLD	61 Neutral	₹25.39B	35.67	―	0.13%	12.93%	-17.47%
REDTAPE	61 Neutral	₹68.35B	36.38	―	0.60%	7.29%	14.72%
HIMATSEIDE	50 Neutral	₹13.06B	14.66	―	0.21%	-7.55%	-30.11%