This Garments Trading Company Incorporates Tritron Fashion FZCO in UAE with Rs 14.23 Lakh Investment, Holding 60 per cent Stake
With a PE ratio of 39.5x, the company trades at a discount compared to the industry PE of 30.4x.
PDS Limited has announced the incorporation of a new entity, Tritron Fashion FZCO, in the United Arab Emirates (UAE) as a subsidiary of its wholly-owned step-down subsidiary, PDS Multinational FZCO. This development was disclosed on March 6, 2025, and marks the company's strategic move to broaden its business scope.
Tritron Fashion FZCO, incorporated on March 3, 2025, will focus on supplying, distributing, and marketing apparel and consumer goods, including sports clothes and uniforms. The incorporation was executed with a cash consideration amounting to Rs 14,23,179.19 (equivalent to AED 60,000 or USD 16,337.64), with PDS Limited holding a 60 per cent stake in the new entity. This expansion aligns with PDS Limited's aim to strengthen its presence in the global market, particularly in the clothing and allied sectors.
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PDS Ltd is engaged in trading of garments, investment holding, design, development, marketing, sourcing and distribution of readymade garments of all kinds and other consumer products worldwide
PDS Ltd has a market capitalisation of Rs 6,412 crore and is currently trading at Rs 454. The stock has reached a 52-week high of Rs 659 and a low of Rs 335 over the past year. The one-year return is -11.79 per cent, and 233 per cent returns in 5 years. The company has been maintaining a healthy dividend payout of 22.2 per cent.
In the Quarterly Results of December 2024, the company reported revenue of Rs 3,124.88 crore, reflecting a year-on-year growth of 21.13 per cent but a quarter-on-quarter decline of 5.49 per cent. Net profit stood at Rs 24.85 crore, marking a 70.44 per cent increase compared to December 2023 but a 65.41 per cent decline from September 2024. The net profit margin for December 2024 was 0.80 per cent, compared to 2.17 per cent in September 2024 and 0.57 per cent in December 2023.
For the full financial year 2024, the company's revenue was Rs 10,372.65 crore, showing a decline of 1.93 per cent from Rs 10,577.00 crore in FY23. The net profit for FY24 stood at Rs 162.37 crore, reflecting a 41.07 per cent decrease compared to Rs 162.22 crore in FY23. The net profit margin for FY24 was 1.56 per cent, lower than the 2.60 per cent recorded in FY23.
With a PE ratio of 39.5x, the company trades at a discount compared to the industry PE of 30.4x. The company has ROCE of 17.5 per cent and ROE of 13 per cent.
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Disclaimer: The article is for informational purposes only and not investment advice