Pearl Global Industries is one of the companies that will affect 50 % of US President Donald Trump’s tariff. It exports garment. In the last one month, the stock of this company has crashed 11 percent. However, the company performed well in the June quarter. Its revenue increased by 16.6 percent on a year after year. The company had a big hand in Vietnam and Indonesia operations. During this period, the company’s operating margin declined by 20 basis points on a year -on -year basis. The reason for this was the increase in the cost from operation loss and additional tariffs from its new facilities in Guatemala and Bihar.
Good volume growth in June quarter
Pearl Global The shipment volume of the Ki Shipment increased by 1.72 crore pieces in the June quarter. This year after year is 3 percent more. However, the company’s global manufacturing diversified. This has reduced the impact of trade related uncertainty. The average Relations increased in the June quarter. The major reason for this was its business performance in Vietnam and Indonesia. Apart from this, the company exported well to jackets and related products in western markets.
60 million piece of increase in capacity
In the financial year 2025-26, the company’s revolution is estimated to be Rs 625-650 per piece. Bangladesh has been the most beneficial production hub of the company. The reason for this is the good availability of skilled labor and a facewritable trade incentive. The company’s capacity has now increased to 5.48 crore pieces annually. The company is soon to increase the capacity of 50-60 lakh pieces. Guatemala business has benefited from 10 % tariff. This market is close to America. Despite the loss in the beginning last year, the operation and further growth from the new product line is expected to be good.
UK Free-Trade Agreement will benefit
Indian companies will have to export 50 percent of US tariffs. In view of this, Pearl Global has planned to supply the US order from Vietnam, Bangladesh, Indonesia and Guatemala. On the other hand, the company will get the benefit of the free-trade agreement between India-UK. This has eliminated 10-12 percent of the difference in duty on Indian garments. Now India has come in equal to countries like Bangladesh and Vietnam. However, the UK holds 5 per cent of Pearl Global Revenue. In the next two years, the UK expects a three -fold bounce in Indian exports. Pearl Global will benefit from this.
Should you invest?
The US tariff will have a less impact on Pearl Global than the second garment exparting companies. Trading is being done in its shares at 18 times the estimated Earings of Financial Year 2026-27. This valuation seems fine. However, American tariff may affect Pearl Global Business. This is the reason that the company’s stock has declined sharply in the last one month. On August 1, the company’s stock closed at Rs 1,240 with a strength of 0.53 per cent.