Pioneer Embroideries Limited (PIONEEREMB) AI Stock Analysis

• Market Cap: ₹886.32M
• Dividend Yield: N/A
• Average Volume (3M): 6.87K
• Price to Earnings (P/E): 101.4
• Beta (1Y): 0.96
• Revenue Growth: -4.46%
• EPS Growth: -77.27%
• Country: IN
• Employees: 1,088
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): N/A
• Shares Outstanding: 30,807,192
• 10 Day Avg. Volume: 13,985
• 30 Day Avg. Volume: 6,866
• PEG Ratio: 3.21
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.31
• P/FCF Ratio: 7.95
• 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: 57 Neutral
• Price Target: ₹28.00 ▼(-0.07% Downside)

The score is primarily supported by improving fundamentals (revenue growth, better operating cash flow, and positive free cash flow) but is held back by weak technical trend signals (below key moving averages with negative MACD) and an expensive valuation (very high P/E).

Positive Factors

Improved cash generation

The material improvement in operating cash flow and a return to positive free cash flow in 2025 indicates the business is converting operations into cash. That durable cash-generation boost supports reinvestment, debt service and strategic flexibility over the coming months.

Healthy equity base and moderate leverage

A healthy equity ratio with only moderate leverage provides a structural financial buffer against cyclical downturns. This balance sheet position preserves capacity for capital spending or working-capital needs without immediate refinancing pressure, aiding medium-term resilience.

Revenue trend and improved net margin

Reported revenue growth alongside a slight net margin improvement suggests improving demand and better cost control. Sustained top-line expansion with margin gains supports durable earnings power and the ability to invest in value-added embroidery capabilities over time.

Negative Factors

Rising total debt

An increasing absolute debt level raises interest and refinancing risk, potentially constraining capital allocation. If revenue or margins weaken, servicing higher debt could pressure liquidity and limit strategic options over the next several quarters.

Declining gross margin and weak operating margins

A falling gross margin and suboptimal EBIT/EBITDA margins point to compression at the production or pricing level. Structural margin pressure reduces sustainable profitability and limits the firm's ability to absorb cost shocks or fund value-added initiatives without further efficiency gains.

Suboptimal cash conversion

Although free cash flow is positive, the weak conversion ratio indicates earnings aren’t fully translating to cash. Persistent cash-conversion inefficiencies from working capital or timing issues can restrict funding for growth, capex or distributions over the medium term.

Pioneer Embroideries Limited Business Overview & Revenue Model

Company Description

Pioneer Embroideries Limited, together with its subsidiaries, manufactures and sells embroideries, torchon/bobbin laces, raschel laces, and other garment accessories in India. The company's products include dope dyed polyester yarns; specialty polyester filament yarns; embroidered laces-fabric and guipure, and embroidered dress materials; braided and fancy laces; embroidered fabrics, allover fabrics, and laces; and apparel. It also provides elastics, flat bed knitted laces, and motifs/collars/necks. In addition, the company engages in the retail of embroidered clothing, as well as sarees, salwar kameez dupatta, and fashion fabrics under the Hakoba brand; and men's wear, such as unstitched and stitched kurta pyjama. It also exports its products. The company was founded in 1961 and is based in Mumbai, India.

How the Company Makes Money

Pioneer Embroideries generates revenue primarily through the sale of its embroidered and printed textile products. The company's revenue model is centered around bulk orders from apparel manufacturers and retailers, who require customized embroidery designs for their clothing lines. Key revenue streams include direct sales, long-term contracts with major textile companies, and partnerships with fashion brands that rely on Pioneer Embroideries for unique, high-quality embellishments. Additionally, the company benefits from economies of scale due to its extensive production capabilities, allowing it to optimize costs and maintain competitive pricing, which further enhances its profitability.

Pioneer Embroideries Limited Financial Statement Overview

Summary

Financials are mixed: revenue is growing and net margin slightly improved, while gross margin declined and EBIT/EBITDA margins indicate operational efficiency needs work. Balance sheet is supported by a healthy equity ratio and moderate leverage, but rising debt is a risk. Cash flow improved with positive free cash flow in 2025, though cash conversion could be better.

Income Statement

Pioneer Embroideries Limited shows a positive trend in revenue growth, increasing from 2024 to 2025. The gross profit margin remains strong, though it declined in 2025 compared to 2024. Net profit margin has slightly improved, indicating better cost control. However, EBIT and EBITDA margins reveal room for enhancement in operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is moderate, suggesting a balanced approach to financing. However, the rising total debt in recent years presents a potential risk. Return on equity has shown fluctuations, indicating inconsistent profitability. The equity ratio is healthy, reflecting a solid financial base.

Cash Flow

Operating cash flow has improved significantly, showcasing strong cash generation capabilities. The free cash flow has turned positive in 2025, indicating improved capital efficiency. However, free cash flow to net income ratio suggests that cash conversion could be optimized further.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.64B	3.75B	3.36B	2.97B	2.91B	2.26B
Gross Profit	1.29B	895.35M	311.95M	1.14B	1.22B	1.07B
EBITDA	324.48M	315.52M	253.22M	238.04M	263.58M	282.36M
Net Income	53.49M	44.86M	37.23M	84.95M	110.45M	192.58M
Balance Sheet
Total Assets	0.00	3.22B	3.32B	2.93B	1.99B	1.88B
Cash, Cash Equivalents and Short-Term Investments	28.75M	28.75M	25.59M	107.82M	24.08M	62.42M
Total Debt	0.00	961.74M	1.10B	968.77M	314.93M	324.47M
Total Liabilities	-1.55B	1.66B	1.86B	1.64B	772.92M	779.66M
Stockholders Equity	1.55B	1.55B	1.46B	1.29B	1.21B	1.10B
Cash Flow
Free Cash Flow	0.00	145.55M	-223.85M	-592.28M	67.25M	97.35M
Operating Cash Flow	0.00	238.35M	115.52M	102.72M	133.77M	181.66M
Investing Cash Flow	0.00	-88.22M	-337.21M	-650.43M	-102.70M	-82.04M
Financing Cash Flow	0.00	-138.07M	159.97M	602.15M	-79.77M	-51.69M

Pioneer Embroideries Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.02
• 50DMA: Positive
• 100DMA: Negative
• 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:PIONEEREMB, the sentiment is Positive. The current price of 28.02 is above the 20-day moving average (MA) of 26.21, above the 50-day MA of 27.93, and below the 200-day MA of 36.58, indicating a neutral trend. The MACD of -0.34 indicates Negative momentum. The RSI at 59.94 is Neutral, neither overbought nor oversold. The STOCH value of 73.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:PIONEEREMB.

Pioneer Embroideries Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
PIONEEREMB	57 Neutral	₹886.32M	101.43	―	―	-4.46%	-77.27%
INDTERRAIN	48 Neutral	₹1.81B	-26.75	―	―	-5.67%	71.26%
SHIVAMAUTO	47 Neutral	₹3.00B	-4.23	―	―	-11.18%	-22.17%
CELEBRITY	44 Neutral	₹547.85M	-3.32	―	―	-28.56%	-16.49%