Pearl Global shares rise 6% on receiving 'Buy' rating post analyst meet; target price
MOFSL said Pearl Global's analyst meet reinforced a structurally stronger mid-to-high teens growth framework, with management targeting 16-18% revenue growth over FY26-30 and around 15% volume growth.
- Sep 25, 2026,
- Updated Sep 25, 2026 12:58 PM IST
Pearl Global Industries Ltd shares rose 6% in Friday's trade as Motilal Oswal Financial Services (MOFSL) reiterated its 'Buy' rating on the stock and raised its target price, citing capacity expansion, product diversification, backward integration and improving margins. The brokerage expects the company's revenue, Ebitda and PAT to grow at CAGRs of 17%, 32% and 38%, respectively, over FY26-28.
MOFSL said Pearl Global's analyst meet reinforced a structurally stronger mid-to-high teens growth framework, with management targeting 16-18% revenue growth over FY26-30 and around 15% volume growth. Ebitda margins are targeted to expand to 12-14%, supported by operating leverage and a higher contribution from knit products.
Pearl Global Industries shares rose 6.12% on Friday, hitting a high of Rs 1,353, compared with the previous close of Rs 1,274.95 apiece on BSE.
MOFSL retained its Buy rating and raised its target price to Rs 1,500 from Rs 1,360, valuing the stock at 18 times FY28E Ebitda. The revised target implies an upside of around 18% from the brokerage's reference price of Rs 1,274.
The brokerage said Pearl Global's FY28 revenue target of Rs 6,000 crore is likely to be achieved well ahead of schedule. Management has also set a revenue target of Rs 9,000-10,000 crore by FY30, implying a 16-18% CAGR from FY26.
Capacity expansion is a key growth driver. Pearl Global currently has capacity of around 108 million pieces, which is targeted to rise to 120-140 million pieces by FY28 and 170-175 million pieces by FY30, with utilisation targeted at around 80%. The company plans total capex of Rs 675-725 crore through FY30, including Rs 325-350 crore for capacity expansion.
Pearl Global plans to reduce its reliance on outsourced washing from around 60% to 20-25% through laundry facilities in Bangladesh. Management estimates that the shift could expand margins by around 40 basis points on Rs 6,000 crore of revenue.
MOFSL expects Pearl Global's FY27 revenue to reach Rs 5,900 crore, with Ebitda of Rs 640 crore and adjusted PAT of Rs 390 crore. For FY28, it estimates revenue of Rs 6,930 crore, Ebitda of Rs 810 crore and adjusted PAT of Rs 530 crore.
Pearl Global Industries Ltd shares rose 6% in Friday's trade as Motilal Oswal Financial Services (MOFSL) reiterated its 'Buy' rating on the stock and raised its target price, citing capacity expansion, product diversification, backward integration and improving margins. The brokerage expects the company's revenue, Ebitda and PAT to grow at CAGRs of 17%, 32% and 38%, respectively, over FY26-28.
MOFSL said Pearl Global's analyst meet reinforced a structurally stronger mid-to-high teens growth framework, with management targeting 16-18% revenue growth over FY26-30 and around 15% volume growth. Ebitda margins are targeted to expand to 12-14%, supported by operating leverage and a higher contribution from knit products.
Pearl Global Industries shares rose 6.12% on Friday, hitting a high of Rs 1,353, compared with the previous close of Rs 1,274.95 apiece on BSE.
MOFSL retained its Buy rating and raised its target price to Rs 1,500 from Rs 1,360, valuing the stock at 18 times FY28E Ebitda. The revised target implies an upside of around 18% from the brokerage's reference price of Rs 1,274.
The brokerage said Pearl Global's FY28 revenue target of Rs 6,000 crore is likely to be achieved well ahead of schedule. Management has also set a revenue target of Rs 9,000-10,000 crore by FY30, implying a 16-18% CAGR from FY26.
Capacity expansion is a key growth driver. Pearl Global currently has capacity of around 108 million pieces, which is targeted to rise to 120-140 million pieces by FY28 and 170-175 million pieces by FY30, with utilisation targeted at around 80%. The company plans total capex of Rs 675-725 crore through FY30, including Rs 325-350 crore for capacity expansion.
Pearl Global plans to reduce its reliance on outsourced washing from around 60% to 20-25% through laundry facilities in Bangladesh. Management estimates that the shift could expand margins by around 40 basis points on Rs 6,000 crore of revenue.
MOFSL expects Pearl Global's FY27 revenue to reach Rs 5,900 crore, with Ebitda of Rs 640 crore and adjusted PAT of Rs 390 crore. For FY28, it estimates revenue of Rs 6,930 crore, Ebitda of Rs 810 crore and adjusted PAT of Rs 530 crore.