NSEI:PGIL

Stock Analysis Report

Pearl Global Industries

Executive Summary

Pearl Global Industries Limited, together with its subsidiaries, manufactures and exports readymade garments.

Rewards

PE ratio (4.9x) is below the Indian market (12.9x)

Earnings grew by 117.1% over the past year

Risk Analysis

Interest payments are not well covered by earnings

Unstable dividend track record

Large one-off items impacting financial results

Shareholders have been diluted in the past year

+ 1 more risk


Snowflake Analysis

Proven track record and slightly overvalued.


Similar Companies

Kitex Garments

BSE:521248

Share Price & News

How has Pearl Global Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PGIL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.8%

PGIL

0.5%

IN Luxury

-2.4%

IN Market


1 Year Return

12.6%

PGIL

9.8%

IN Luxury

6.8%

IN Market

Return vs Industry: PGIL exceeded the Indian Luxury industry which returned 9.8% over the past year.

Return vs Market: PGIL exceeded the Indian Market which returned 6.8% over the past year.


Shareholder returns

PGILIndustryMarket
7 Day-0.8%0.5%-2.4%
30 Day-16.2%-0.4%-0.6%
90 Day8.4%7.7%7.2%
1 Year14.9%12.6%10.6%9.8%8.9%6.8%
3 Year17.2%11.2%60.5%58.5%31.8%24.8%
5 Year-25.8%-31.3%104.6%101.0%40.3%27.8%

Price Volatility Vs. Market

How volatile is Pearl Global Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Pearl Global Industries undervalued compared to its fair value and its price relative to the market?

4.86x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PGIL (₹152.35) is trading above our estimate of fair value (₹41.82)

Significantly Below Fair Value: PGIL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PGIL is good value based on its PE Ratio (4.9x) compared to the Luxury industry average (10.3x).

PE vs Market: PGIL is good value based on its PE Ratio (4.9x) compared to the Indian market (12.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PGIL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PGIL is overvalued based on its PB Ratio (0.7x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

How is Pearl Global Industries forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

20.6%

Forecasted Consumer Durables industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Pearl Global Industries has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Pearl Global Industries performed over the past 5 years?

11.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PGIL has a large one-off gain of ₹182.0M impacting its September 30 2019 financial results.

Growing Profit Margin: PGIL's current net profit margins (3.9%) are higher than last year (1.9%).


Past Earnings Growth Analysis

Earnings Trend: PGIL's earnings have grown by 11.9% per year over the past 5 years.

Accelerating Growth: PGIL's earnings growth over the past year (117.1%) exceeds its 5-year average (11.9% per year).

Earnings vs Industry: PGIL earnings growth over the past year (117.1%) exceeded the Luxury industry 1%.


Return on Equity

High ROE: PGIL's Return on Equity (13.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Pearl Global Industries's financial position?


Financial Position Analysis

Short Term Liabilities: PGIL's short term assets (₹6.7B) exceed its short term liabilities (₹4.7B).

Long Term Liabilities: PGIL's short term assets (₹6.7B) exceed its long term liabilities (₹2.3B).


Debt to Equity History and Analysis

Debt Level: PGIL's debt to equity ratio (73.7%) is considered high.

Reducing Debt: PGIL's debt to equity ratio has increased from 50.9% to 73.7% over the past 5 years.

Debt Coverage: PGIL's debt is not well covered by operating cash flow (15.8%).

Interest Coverage: PGIL's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet

Inventory Level: PGIL has a high level of physical assets or inventory.

Debt Coverage by Assets: PGIL's debt is covered by short term assets (assets are 1.8x debt).


Next Steps

Dividend

What is Pearl Global Industries's current dividend yield, its reliability and sustainability?

1.99%

Current Dividend Yield


Dividend Yield vs Market

company2.0%marketbottom25%0.6%markettop25%2.5%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: PGIL's dividend (1.99%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: PGIL's dividend (1.99%) is low compared to the top 25% of dividend payers in the Indian market (2.48%).


Stability and Growth of Payments

Stable Dividend: PGIL has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: PGIL's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (9.7%), PGIL's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Pearl Global Industries's salary, the management and board of directors tenure and is there insider trading?

6.5yrs

Average management tenure


CEO

Pulkit Seth (39yo)

6.5yrs

Tenure

₹12,050,400

Compensation

Mr. Pulkit Seth serves as the Managing Director of Pearl Global Industries Limited since June, 2013. Mr. Seth has been Managing Director of Pearl Global Limited since April 1, 2005. Mr. Seth has been Manag ...


CEO Compensation Analysis

Compensation vs Market: Pulkit's total compensation ($USD169.06K) is above average for companies of similar size in the Indian market ($USD33.67K).

Compensation vs Earnings: Pulkit's compensation has been consistent with company performance over the past year.


Management Age and Tenure

6.5yrs

Average Tenure

40yo

Average Age

Experienced Management: PGIL's management team is seasoned and experienced (6.5 years average tenure).


Board Age and Tenure

7.9yrs

Average Tenure

64yo

Average Age

Experienced Board: PGIL's board of directors are considered experienced (7.9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.8%.


Management Team

  • Pulkit Seth (39yo)

    Vice-Chairman & MD

    • Tenure: 6.5yrs
    • Compensation: ₹12.05m
  • Sandeep Sabharwal

    Company Secretary

    • Tenure: 11.6yrs
    • Compensation: ₹1.79m
  • Vinod Vaish (60yo)

    Whole-Time Director

    • Tenure: 7.9yrs
    • Compensation: ₹1.73m
  • Shifalli Seth (38yo)

    Whole-Time Director

    • Tenure: 7.9yrs
    • Compensation: ₹7.55m
  • Pankaj Bhasin (46yo)

    Chief Executive Officer of Sampling & Merchandising

    • Tenure: 0yrs
  • Amit Mohan (53yo)

    Group Chief Financial Officer

    • Tenure: 0yrs
  • Sumit Kumar (37yo)

    Executive Assistant Chairman

    • Tenure: 0yrs
  • Raghav Garg (36yo)

    Chief Financial Officer

    • Tenure: 0.8yrs
    • Compensation: ₹5.17m
  • Manish Sareen (48yo)

    Senior Vice President of Marketing & Operations

    • Tenure: 0yrs
  • Ashutosh Sharma (40yo)

    Assistant Vice President of Human Resource

    • Tenure: 0yrs

Board Members

  • Chittranjan Dua (68yo)

    Non-Executive Independent Director

    • Tenure: 13.3yrs
    • Compensation: ₹40.00k
  • Pulkit Seth (39yo)

    Vice-Chairman & MD

    • Tenure: 6.5yrs
    • Compensation: ₹12.05m
  • Anil Nayar (69yo)

    Non-Executive Independent Director

    • Tenure: 7.9yrs
    • Compensation: ₹40.00k
  • Deepak Seth (68yo)

    Non-Executive Chairman

    • Tenure: 0yrs
    • Compensation: ₹10.00k
  • Rajendra Aneja (70yo)

    Non-Executive Independent Director

    • Tenure: 13.3yrs
    • Compensation: ₹10.00k
  • Vinod Vaish (60yo)

    Whole-Time Director

    • Tenure: 7.9yrs
    • Compensation: ₹1.73m
  • Shifalli Seth (38yo)

    Whole-Time Director

    • Tenure: 7.9yrs
    • Compensation: ₹7.55m
  • Abhishek Goyal (38yo)

    Non-Executive Independent Director

    • Tenure: 2.6yrs
    • Compensation: ₹50.00k

Company Information

Pearl Global Industries Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Pearl Global Industries Limited
  • Ticker: PGIL
  • Exchange: NSEI
  • Founded: 1987
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: ₹3.268b
  • Shares outstanding: 21.66m
  • Website: https://www.pearlglobal.com

Location

  • Pearl Global Industries Limited
  • Pearl Tower
  • Plot No. 51
  • Gurugram
  • Haryana
  • 122001
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532808BSE (Mumbai Stock Exchange)YesEquity SharesININRFeb 2007
PGILNSEI (National Stock Exchange of India)YesEquity SharesININRFeb 2007

Biography

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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/09 12:45
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.