Emkay initiates India's Pearl Global Industries with "Buy"

Pearl Global Industries

21/08/2026 08:02

** Emkay initiates Pearl Global Industries PGIL.NS with "Buy" and PT of 2,800 rupees
** Shares of cloth manufacturer up 0.2% at 2,382.7 rupees
** Brokerage says unlike its peers, PGIL says EBITDA margin is improving in FY26 despite the pressures looming from U.S. tariffs and conflict in the Middle East
** Notes its multi-geography asset base in key exporting nations allows it to dilute the impact of unfavorable tariffs, rising labor costs, or political instability in a particular geography
** Expects co's volume to grow at a CAGR of 12% over FY26-29E, as its existing and new capacities ramp up
** Expects EBITDA margin to reach 11.5% in FY29E 
** PGIL keeps a tight grip on working capital; estimate total capex of about 5 billion rupees over FY27-29 - brokerage
** Stock rated as "Buy" on average by 7 analysts; median PT at 2,682 rupees - data compiled by LSEG
** YTD, stock up 47.8%
     

(Reporting by Mridula Kumar in Bengaluru)
((Mridula.Kumar@thomsonreuters.com))