The shares of Pearl Global Industries Limited opened 15 percent higher at Rs 413.60 levels on Wednesday as against its previous close of Rs 359. The scrip jumped after the company posted robust quarterly results. 

In Q3FY23, the company reported total revenue from operations of Rs 717 Crore, a jump of 2 percent Year on Year from Rs 700 Crore. However, on a sequential basis, their revenue declined by 17 percent from Rs 860 Crore. 

Their net profit in the period was Rs 37.4 Crore which was an increase of 122 percent YoY from Rs 16.8 Crore. In the September quarter, their profits stood at Rs 25.9 Crore. 

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Pearl Global is a leading apparel manufacturer offering end-to-end sustainable solutions to the fashion industry which offers products such as Knits, Wovens, Denim, Outerwear, Activewear & Athleisure. It has a presence across 8 countries such as India, Indonesia, Bangladesh, Vietnam, the USA, Spain, Hong Kong, and the U.K. 

Some of the Marquee Clientele of the company include names like Kohl’s, Macy’s, Tommy Hilfiger, Gap, Old Navy, NEXT, and Nordstrom among others. 

The stock has been volatile and has shed approximately 6 percent in the past six months and 18 percent in the past year. It reached a 52-week high of Rs 618 in September last year and is currently trading 32 percent away from those levels. 

The small-cap company has a market capitalization of Rs 886 Crores. The TTM Price to Earnings (PE) ratio of the stock is 8.56 compared to the industry average of 38.62, which means that it is undervalued compared to its peers. 

The stock forms part of ace investor Mukul Mahavir Agrawal’s portfolio. He holds 7,50,000 shares or a 3.46 percent stake in the company with a holding value of Rs 31.3 Crores. In addition to this, the promoters hold a 66.58 percent stake in the company with zero shares pledged and the Foreign Institutional Investors (FIIs) hold a 5.25 percent stake. 

Written by Anoushka Roy


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