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Textile Stock Hits 52-Week High on Ambitious Plans
25 Sep
Summary
- Pearl Global Industries' shares hit a 52-week high following new growth targets.
- PL Capital upgraded the stock to 'Buy' with a raised target price of INR1,500.
- The company aims for INR60 billion revenue by FY30 and 115 million garment pieces by FY27.
Pearl Global Industries experienced a significant rise in its share price, culminating in a fresh 52-week high on Friday. This surge followed the apparel exporter's recent announcement of its strategic growth objectives through FY30 and its forward-looking development roadmap.
Following these announcements, PL Capital revised its rating for Pearl Global Industries, upgrading the stock to 'Buy' from 'Accumulate' and elevating its price target. The brokerage highlighted the company's steady advancements across various markets, with Bangladesh identified as a crucial region for ongoing expansion.
PL Capital's report indicated that Pearl Global Industries is currently surpassing its prior performance targets across key operational metrics. Projections suggest the company will achieve its INR60 billion revenue goal ahead of the initial FY28 deadline. Furthermore, garment production capacity is expected to exceed 115 million pieces by FY27.
The brokerage has updated its financial forecasts to FY29, anticipating substantial growth in revenue, EBITDA, and PAT over the FY26-29 period. Margins are projected to improve, driven by operational efficiencies and backward integration. Consequently, PL Capital has set a new target price of INR1,500 for the stock.
