About Company -
Pioneer Embroideries Ltd is India's largest manufacturer - exporter of Embroideries, Bobbin laces, Raschel laces and other garment accessories. PEL owns the No. 1 retail brand Embroidered clothings named "Hakoba". The company have seven manufacturing units spans 5 states from Tamil Nadu to Haryana. Apart from the domestic sales PEL exports its products to Latin America, North America, Europe, Africa and the Middle East.
Why to invest into it?
1. Company is showing growth potential -
The company's top-line growth is satisfactory since the past decade and unfortunately its bottom-line is not so. In 2008 (up to 2008, PEL having a regular dividend paying track record), to meet the financial requirement for setting up a Dope Dyed Polyester Yarn (DDPY) division, the company had issued FCCBs for $30mn, which were proposed to convert into shares but not happened that because of the sharp fall in its share prices on account of the Global financial crisis. (In fact just $2 mn converted in 2008, $16 mn restructured in FY 2014 and $11 mn was pending). Recently, the company had bought back the remaining FCCBs. It has settled the defaulted dues with ICICI bank by one time settlement. As per the CDR package instruction, in March, 2013 the promoters of the company had subscribed 1651978 shares at Rs. 21.22 per shares and another 3125948 shares at Rs. 19.77 per shares to aggregate Rs. 9.7 crore. Last week PEL has completed the OTS with State Bank of Patiala. So it is clear that the company management is confident with the company's overall growth in the coming years.
2. Well known brand -
- 
- The word itself conjures up images of embroidery. Not surprising coz over the years 
has become synonymous with embroidery. Infact it is one of the most respectable brands in the country (with its fame spread overseas as well) and enjoys a heritage brand status. is also documented in the Indian fashion industry.
- The word itself conjures up images of embroidery. Not surprising coz over the years has become synonymous with embroidery. Infact it is one of the most respectable brands in the country (with its fame spread overseas as well) and enjoys a heritage brand status. is also documented in the Indian fashion industry.
3. Bottom line will improve fast -
Finance cost reduced considerably in the first HY of the current FY. We believe the trend will continue in the coming quarters, once it fully settled the dues as per the schedule and arranged the low cost fund. We hope that the company's financial performance, especially in the bottom-line will considerably improve in the future and it would reflect in its stock price too.
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