A hidden-gem textile stock, backed by investor Mukul Agrawal, is currently trading at a 40 percent discount, presenting a potential investment opportunity. With strong backing and favorable market conditions, this stock is one to watch for investors looking to capitalize on future growth in the textile sector.
Price Movement
As of April 25, the shares of PDS Ltd are currently trading at Rs.382.95 each, representing a 42 percent drop from its 52-week high price of Rs.659.00 per share. In the past month, the stock has fallen by over 15 percent.
Business Overview
PDS Limited is a prominent global fashion infrastructure company that excels in product development, sourcing, manufacturing, and distribution for leading brands and retailers across the globe. Operating with an asset-light, platform-based model, PDS focuses on design-driven sourcing and manufacturing. The company serves as a comprehensive sourcing and manufacturing platform, empowering global apparel retailers to procure garments from a network of factories worldwide.
Business Segments
PDS Limited operates across multiple business segments, with sourcing being its primary revenue driver, connecting global brands to manufacturers and managing the supply chain. The company also has in-house manufacturing facilities in Bangladesh and Sri Lanka, ensuring quality control and timely delivery. Additionally, PDS invests in technology-driven supply chain solutions and engages in real estate activities as part of its diversified business model.
Future Outlook
PDS Limited manages a Gross Merchandise Value (GMV) of approximately $1.8 billion and operates across 22 countries, serving leading global brands and retailers. The company has set an ambitious “555” target, aiming to reach a GMV of $5 billion and a turnover of around $3.5 billion within the next five years. As an interim goal, PDS aims to achieve a GMV of $3 billion and a turnover of approximately $2.2 billion within the next two years.
Financial Performance
In its latest financial update, PDS Ltd reported consolidated revenue of Rs.3,125 crores for Q3 FY25, reflecting a 21.11 percent increase from Rs.2,580 crores in Q3 FY24. The company also saw a notable 61.54 percent rise in net profit, which reached Rs.42 crores, compared to Rs.26 crores in the same quarter last year.
Ratio Analysis
The company has a Return on Capital Employed (ROCE) of 13.69 percent and a Return on Equity (ROE) of 9.52 percent. Its Price-to-Earnings (P/E) ratio stands at 34.26, lower than the industry average of 45.05. Furthermore, the company maintains a current ratio of 1.94, a debt-to-equity ratio of 0.69, and an Earnings Per Share (EPS) of Rs.11.49.
Shareholding Pattern
As of March 2025, the shareholding pattern of PDS Ltd shows that promoters hold 61.41 percent stake, while Foreign Institutional Investors hold 5.15 percent, Domestic Institutional Investors hold 5.74 percent, and Retail Investors hold 27.44 percent stake in the company. Ace investor Mukul Mahavir Agrawal holds 2.46 percent stake in PDS.
Written by – Siddesh S Raskar
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