In textiles plays
- Focus remains on Garmenters coz of US restocking PGIL is a top focus where IC reports was a must read + arvind fashion
- Fabric & yarn plays are something to stay away from coz Demand visibility is not there right now. Assuming this is coz of bangladesh. Cust plants were shut - social unrest - some plant are permanently shut. Players like sportsking have lost a lot of business. Visibility and demand looks weak.
- Technical textiles is something to check for sure. Management commentary if available can be checked too. Precot Garware technical
Yeah Bangladesh is one of the top textile markets so more often than not this geography will come up in almost every important concall in textiles sector. cheapest Labor when it comes textiles - Indian textiles sector struggles to compete sometimes on that front.
. PGIL’s multi-country presence allows it to leverage India’s growth story while benefiting from the cost advantages and capabilities of these other regions.
Contribution from Bangladesh could dwindle too, but the Demand is still robust globally which makes PGIL a good play in a geo heightened environment
checkout Indonesia M&A which they increased just recently. Diversifying.
This kind of subsidiary is beneficial and makes sense. Increases the terminal value - think using that angle once.
RRG charts - Note PGIL moved to LEADING Sector
Fyi, inventories
PGIL - GAP and others
Checkout PGIL MD : Pallab Banerjee
He is an Ex-GAP personnel. And checkout the inventories table for GAP.
Source : Avendus report on Pearl Global PGIL