Buy Pearl Global; target of Rs 1550: Motilal Oswal

Moneycontrol • 2 days ago

Original source

Key Investment Pillars

  • Strong revenue growth driven by volumes and realizations, with 37.2% YoY growth in 2QFY27.
  • Margin expansion supported by favorable product mix, with gross margin expanding 340bp YoY to 48.2%.
  • Capacity additions across geographies, including India, Bangladesh, Vietnam, and Indonesia, to support future growth.
  • Operating leverage and strategic capex to drive long-term EBITDA margin target of 12-14% by FY30.

Thesis Validation Checklist

  • Monitor revenue growth and margin expansion over the next 12 months.
  • Track capacity utilization and additions across geographies.
  • Watch for signs of operating leverage and cost optimization.
  • Keep an eye on the impact of trade agreements, such as the India-UK FTA, on the company's growth prospects.