Pearl Global Industries Ltd.
ISIN: INE940H01022 • Market Cap: ₹11,136 Cr
The 5-Pillar Quality Audit for Pearl Global Industries Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (9.7%), Return on Capital Employed (23.5%), and equity compounding (19.0%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.47 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (15.7%) and 3Y PAT CAGR (20.2%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 35.88 vs PEG of 2.42 and Dividend Yield of 0.6%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 61.1%, backed by 26.0% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 23.5%)
Pearl Global Industries Ltd. generates exceptional return on capital employed of 23.5%, reflecting pricing power and competitive moat.
Robust Equity Compounding (ROE: 19.0%)
Shareholder equity compounds at a healthy 19.0%, exceeding average Indian equity benchmarks.
Strong Topline Expansion (3Y Sales CAGR: 15.7%)
Revenue has expanded at 15.7% CAGR over 3 years, signaling industry market-share gains.
High-Velocity Profit Compounding (3Y PAT CAGR: 20.2%)
Net earnings have compounded at 20.2% annualized, demonstrating operating leverage.
Deep Institutional Sponsorship (26.0%)
Mutual funds, domestic DIIs, and foreign FIIs hold 26.0%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Textiles)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Textiles space.
Quantitative Strategy Eligibility
Checking PGIL against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 77/100 and clean gearing.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Textiles Sector Peer Comparison
Compare PGIL directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Pearl Global Industries Ltd. (PGIL)Current | 77/100 | ₹11,136 Cr | 35.88 | 23.5% | 0.47 | — |
| Page Industries Ltd. (PAGEIND) | 77/100 | ₹39,485 Cr | 52.24 | 63.8% | 0.01 | View |
| K.P.R. Mill Ltd. (KPRMILL) | 67/100 | ₹38,367 Cr | 42.05 | 20.2% | 0.10 | View |
| Vardhman Textiles Ltd. (VTL) | 63/100 | ₹17,217 Cr | 20.30 | 10.8% | 0.13 | View |
| Welspun Living Ltd. (WELSPUNLIV) | 67/100 | ₹17,124 Cr | 61.68 | 15.4% | 0.51 | View |
| Arvind Ltd. (ARVIND) | 64/100 | ₹14,096 Cr | 34.04 | 15.5% | 0.36 | View |
Frequently Asked Questions: Pearl Global Industries Ltd.
Q:What is the 5-Pillar Fundamental Score for Pearl Global Industries Ltd. (PGIL)?
Pearl Global Industries Ltd. has a RupeeTools Fundamental Score of 77/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (75/100), Financial Health (77/100), Growth (86/100), Valuation (63/100), and Ownership Quality (78/100).
Q:Is PGIL fundamentally strong for long-term investment?
Yes, PGIL exhibits solid fundamental strength with a 77/100 score, driven by a return on equity of 19.0% and a debt-to-equity ratio of 0.47.
Q:Does PGIL pass the Coffee Can Investing filter?
Yes! PGIL satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does PGIL compare against other Textiles peers?
Within India's Textiles sector, PGIL trades at a P/E of 35.88 and generates an ROCE of 23.5%. Compare its 5-Pillar score of 77/100 against top sector peers like Page Industries Ltd. (77/100), K.P.R. Mill Ltd. (67/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.