Mukul Agrawal Stock Declares Rs 12.50/Share Dividend & 1:2 Stock Split: Buy?

Pearl Global Industries Limited is a small-cap company in the consumer discretionary sector. Pearl Global is a global end-to-end clothing provider and vendor that was founded in 1987. This reputable apparel manufacturer operates many production facilities in Bangladesh, Vietnam, Indonesia, and India. The company announced its interim dividend of 125% for FY24 along with its financial results for the quarter that ended on September 30, 2023.

Pearl Global Industries Dividend

The Board of Directors have "Declared Second interim dividend (Special dividend) of Rs.12. 5/-per Equity Share i.e. 125% on face value of Rs. 10/-each for the financial year 2023-24 considering the continuously improved business performance of the entire group over the last few quarters. Such Dividend will be paid within 30 days from the date of declaration to those Members entitled thereto. Record Date is fixed on Wednesday, November 22, 2023, for the purpose of determining entitlement of the Members for such Interim Dividend," said Pearl Global Industries in a stock exchange filing.

Pearl Global Industries Stock Split

The Board has also declared stock split in a 1:2 ratio i.e., the existing 1 equity share of face value of Rs. 10/- each fully paid up shall be subdivided/ split into 2 equity shares of face value of Rs. 5/- each fully paid up.

"The Sub-Division/ Split of Equity Shares of the Company from face value of Rs. 10/-each to Rs.5/each, subject to approval of the Members. The record date for Sub-division/Split will be intimated in due course subject to compliance of necessary laws," said the company in a stock exchange filing.

The company informed stock exchanges that the stock split has been announced to encourage wider participation of small investors and to enhance the liquidity of the equity shares of the company in the stock market.

Pearl Global Industries Q2 Results

On a standalone basis, the company reported Rs 218.50 crore in the September 2023 quarter down 27.29% from Rs. 300.52 crore in the September 2022 quarter. The company reported a standalone net profit of Rs. 1.20 crore in Q2FY24 down 78.63% from Rs. 5.60 crore in Q2FY23. EBITDA reached Rs. 14.36 crore in the quarter under review down 28.02% from Rs. 19.95 crore in the year-ago quarter.

Consolidated, the company's revenue from operations for the quarter that ended on September 30, 2023, was Rs. 960.59 crore, up 11.65% from Rs. 860.33 crore in the same period the previous year. Consolidated net profit improved 71.48% from Rs. 23.14 crore in Q2FY23 to Rs. 39.68 crore in Q2FY24. EBITDA jumped by 40.95% to Rs. 84.81 crore in the September 2023 quarter from Rs. 60.17 crore in the same September 2022 quarter.

Pearl Global Industries Share Price Target

KKunal V Parar, Vice President - Technical and Algo at Choice Broking said, "On a daily chart, the stock is forming pennant formation which is a continuation formation and suggesting good upside move if the stock gives breakout of the same. Moreover, the stock is trading above its long-term moving average which suggests an uptrend only. However, a daily momentum indicator RSI is showing weak breath in the counter after returning from the Overbought zone which points out a time-based consolidation in the counter. Based on the above technical structure, we are expecting a good upside if the stock gives a breakout of 1380 level while downside support comes at 1200.00."

Deven Mehata-Equity Research Analyst said, "PGIL's recent performance has been noteworthy, trading at 1292 levels and displaying a consistent pattern of higher highs and higher lows on monthly charts. Over the past four months, the stock has experienced a remarkable surge, increasing by more than 140% from 600 to its peak at 1470."

"Investors who entered positions at lower levels are advised to consider booking partial profits, given the substantial price appreciation. Additionally, a prudent approach involves trailing stop loss orders to protect gains, with a suggested level at 1200. This aligns with the support of the 20-Day Exponential Moving Average (EMA), providing a safety net. The stock encounters a smaller resistance level around 1380. A successful breach of this resistance could pave the way for further upward momentum, potentially reaching and surpassing the all-time high levels of 1470. Investors should monitor the stock closely, as breaking through this resistance could present additional opportunities," said Deven Mehata.

Pearl Global Industries Shareholding Pattern

During Q2FY24, the company reported promoters' shareholding of 66.58%, FIIs stake of 5.30%, DIIs stake of 0.50% and public stake of 27.61%. As per the shareholding pattern of Pearl Global Industries for the July-September 2023 quarter, ace investor Mukul Mahavir Agrawal held 7,50,000 shares in his portfolio or 3.46% fully-paid up equity stake in the company.

Disclaimer

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