Mukul Agarwal Stock With Harvard Case Study On The Business; Here Is All You Need To Know

A small-cap stock, involved in the trading, investment holding, design, development, marketing, sourcing, and distribution of readymade garments, is gaining attention after its business model was deemed significant enough to be featured in a Harvard Case Study.

Price Movement

During Friday’s trading session, shares of PDS Ltd reached an intra-day high of Rs.458.80 per share, rising 1.37 percent from its previous close of Rs.453.30 per share. However, the stock later declined and is currently trading at Rs.495.80 each. 

Unique Preposition

PDS Limited’s inclusion in a Harvard Business Case Study highlights its innovative business model, financial discipline, and focus on trust, people, and partnerships. The company’s business model features a decentralized structure with 45 independent business units led by CEOs who hold equity. This design-led sourcing platform promotes entrepreneurship while ensuring centralized oversight in areas like finance and risk management. 

The company follows an asset-light model, maintaining financial stability with a low debt. This approach has allowed PDS to grow sustainably and navigate crises, including the COVID-19 pandemic, while supporting operations and partners.

PDS is committed to sustainability and ethical practices, gaining trust from global retailers like Tesco, Primark, and Sainsbury’s. Its operations span 22 countries, with a diverse customer base of 200 brands, providing resilience against market disruptions.

Also read: Stock skyrockets 16% after receiving 20-year US patent for its Cross Sealing Device

Growth Strategy

The company has outlined an ambitious growth target known as “555,” which aims to achieve a GMV of $5 billion and a turnover of approximately $3.5 billion within the next five years. This long-term goal reflects the company’s determination to scale its operations and increase market presence significantly.

As an interim milestone, PDS targets a GMV of $3 billion and a turnover of around $2.2 billion within the next two years. Key drivers of growth include strengthening relationships with existing customers, pursuing strategic acquisitions, and expanding into high-value categories, with a particular focus on the U.S. market.

Recent Acquisitions

PDS has revealed plans to acquire a 55% stake in Knit Gallery India Private Limited, a company that specializes in manufacturing baby wear and children’s apparel. The acquisition, valued at ₹41 crores, is expected to be completed by May 2025. This move will strengthen PDS’s manufacturing capabilities and align with the Make in India initiative.

Future Guidance

The management remains confident about achieving the interim target of $3 billion GMV, with growth expected to be fueled by both the existing business and ongoing strategic initiatives. The company’s focus on expanding its market presence and leveraging new opportunities positions it well for continued success.

Currently, the order book is valued at around $425 million, with design-led sourcing accounting for more than 87 percent of revenue. This segment has shown strong growth, with a year-over-year increase of 25 percent, reflecting the company’s solid performance and potential for further expansion.

Financial Performance

According to its latest financial update, PDS Ltd reported consolidated revenue of Rs.3,125 crores in Q3 FY25, showing a 21 percent incline from Rs.2,580 crores in Q3 FY24. Additionally, the company saw a surge in net profit to Rs.42 crores, rising 62 percent from Rs.26 crores in the same period last year.

Shareholding Pattern

As of December 2024, the shareholding pattern of PDS Ltd shows that promoters hold 61.52 percent stake, while Foreign Institutional Investors hold 5.15 percent, Domestic Institutional Investors hold 5.74 percent, and Retail Investors hold 27.44 percent stake in the company. Ace investor Mukul Mahavir Agrawal holds 2.46 percent stake in PDS.

Written by – Siddesh S Raskar

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