This small-cap firm which falls under the sector of trading saw its shares rise by 5 percent to an intraday high of Rs 590 apiece from its previous close after a prominent Domestic institutional investor bought fresh 10,00,000 equity shares in the firm for a price of Rs 554.97 per share.
The shares of PDS limited generated a positive return of 80 percent in the past year and a multi-bagger return of 785 percent from the past 5 years. With the market capitalization standing at Rs 7,631.92 crores, the stock climbed around 4 percent trading at Rs 577.95 levels at 1:28 pm on Wednesday’s market session.
What happened:
According to BSE bulk deal data as of 30th July 2024, the domestic institutional investor ICICI PRUDENTIAL MUTUAL FUND bought 1,000,000 fresh equity shares in PDS Limited for a price of Rs 554.97 apiece.
Financials:
Reviewing the financials of PDS Limited on a QoQ basis, the revenues fell by 18.4 percent from Rs 3,215 crores in Q4FY24 to Rs 2,621 crores in Q1FY25. In the same time frame, the net profits decreased from Rs 65 crores to Rs 31 crores, demonstrating a 31 percent decrease.
Ratios:
The trailing 12 months’ ROE and ROCE of PDS limited stood at 13 percent and 16 percent respectively. Also for the same period the Debt to equity ratio of the firm stood at 0.9 times.
Plans for driving growth and profitability:
As per the latest investor presentation published by PDS Limited, the firm has plans to expand its manufacturing and CMT ( cut, make trim ) setup beyond Bangladesh and Sri Lanka. The firm has also plans for category expansion in footwear, accessories, and Health & beauty.
Global presence:
PDS Limited operates globally in over 20 countries with more than 90 locations, including China, Bangladesh, Turkey, Germany, Egypt, and more.
Industry overview:
The global apparel retail market is expected to reach USD 2.2 trillion by 2028. Asia Pacific leads with 36 percent of global revenue, followed by the Americas with 34 percent, Europe with 26 percent, and the Middle East and Africa with 4 percent. The key growth drivers contributing to this include the increasing young population, Rising disposable incomes, growing awareness of Fashion trends, and Urbanization.
Ace Investor Holdings:
According to the latest shareholding pattern, Ace Investor Mukul Mahavir Agrawal who entered the stock on September 21 currently holds approximately 3,393,874 equity shares equivalent to a 2.57 stake in this company. The current holding value of the investment amounts to Rs 197.7 crores.
Shareholding Pattern:
As of June 2024, PDS Limited’s shareholding pattern stood at 65.73 percent of the stakes held by the promoters, 29.50 percent held by the public, 3.69 percent for the foreign institutional investors, and 0.91 percent of the stakes held by the domestic institutional investors.
About the Company:
PDS Limited is engaged in the trading of garments, investment holding, design, development, marketing, sourcing, and distribution of readymade garments of all kinds and other consumer products worldwide.
Written By Zahal
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