Some key developments in the past 2-3 mnths

1. Pref allotment announced to Madhu Kela and team for INR 85 crores and promoter Oilmax at 127/share
2. Mgmt change… MD of Oilmax (promoter) is now the CEO
3. Promoter holding significantly increased… in past 2 quarters (from ~59% to ~64%)… promoter has been buying 80 rs to 130 rs
4. Order book stands at INR 950 crores … FY 2023 sales were only INR 110 crores… recent order wins imply that lot of it will be complete it in the current financial year
5. Valuation is now ~INR 550 crores… downside is that company has very bad track record of write offs
6. Recent order wins indicate diverisfying order book and expect to up further
7. Good recent thread https://twitter.com/ambeecious/status/1683177472999792640

Plan to meet the company to really identify what is going on. ANybody tracking this?

Do you see any growth trigger on this business in next 6 months , for past 2.5 years there is no growth in sales but its consistent

@kb_snn

Do you have any views on dividend yield category mutual funds, which more or less have the same returns like multi cap funds, to the tune of 15%, over the past 5 or 10 years. SBI fund has an AUM of 4700 crores in 6 months, and their management has spoken very high about the category, that the category can reach 1 lakh crores.

Do you compare these funds with Nifty 50 Value 20, considering the fact that once can accumulate whenever they fall, and sell in the future as need be.

@Vamshipendli Have you looked at this?

Pearl Global have given decent results from last few quarters. This quarter result is more significant as it comes in background of not so good results from other companies in this sector. The results of PDS Ltd, Gokaldas Exports, KPR Mills have all showing profit degrowth, but PGIL have given stellar results with confidence of growing topline and bottomline in coming quarters.

The acquisition of company in Guatemala will give PGIL easy and fast access to the North American Market

The most significant part of the result is increase of per unit price. The increase in realisations per unit means the company is moving upwards of value chain

PGIL have consistently shown improved performance in CAGR sales growth, profit growth and most importantly stock price. There return on equity have also improved

Hope experts will guide more with pros and cons of the company.

Agree Sunray!

Moreover Q2,Q3, Q4 would be a good test to check if there is a room for footfall growth- if it comes due to the operating leverage full year profits could be a lot better this year