Pearl Global Industries (PGIL IN) – Initiating Coverage – A Multi-Country Platform Built for the New World – BUY
Published on 05 Jun 2026
PGIL is a global manufacturer and exporter of Ready-Made Garments (RMG), counting several leading fashion brands among its clients. The company is on a clear growth path driven by 1) diversified geographic presence; 2) timely and strategic expansion of its manufacturing capabilities; 3) favorable global trade dynamics; and 4) efficiency gains arising from cost optimization and other sustainability initiatives. It targets to increase the capacity by 50% or more compared to FY24, to reach 120-130mn pieces by FY28. We expect revenue/EBITDA/PAT to grow at ~12%/22%/25% CAGR over FY26-28E primarily driven by the capacity addition, and improved utilization. Given the well-timed capacity expansion along with improved utilization, volume-driven revenue growth, improving margin profile and superior capital returns relative to close peers, we initiate coverage on PGIL with ‘BUY’ and TP of INR2,070.
