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Pioneer Embroideries
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Pioneer Embroideries Ltd (PEL), promoted by Rajkumar Sekhani and Manak Chand Baid, was incorporated in Oct.'91 at Bombay to design and manufacture embroidery fabrics and laces at GIDC. The Company is a manufacturer of Special Polyester Filament Yarn (SPFY), Embroidery & Lace Products. It has 4 manufacturing units located at Kala-amb in Himachal Pradesh for SPFY and Sarigam in Gujarat, Naroli in Daman & Nagar Haveli, Coimbatore in Tamil Nadu for Embroidery and Laces.
PEL came out with a public issue in Sep.'93 to part-finance this project. The project was delayed by six months due to non-arrival of machinery and technical problems and went on stream only in Mar.'94.
During 1996-97, to improve the bottom lines of the company and to meet the growing demand in fashion industry, it has taken up a expansion project at Silvassa by importing 12 computerised embroidery machines having installed capacity of 46 lac meters p.a. The financing was done through by way of equity issue or optional redeemable convertable preference shares to the promoters, Directors, their friends,relatives and associates and the same was commissioned during 1997-98.
During 1999-2000 the Crochet Lace Division started commercial production. The Company in order to consolidate its manufacturing base in embroidery has signed a memorandum of understanding with promoters of Salzer Textiles Limited, an Embroideries Manufacturer for taking over that company.
The company has acquired the management control of Coimbatore based Salzer Textiles Limited(STL), a 100% EOU and embroidery manufacturer by acquiring 49.11% stake in the company during 2000-01. STL has an installed capacity of 540 million stitches p.a. In 2001-02 it has increased it stake to 52.49% making the Salzer Textiles as Subsidiary company.
The company has also acquired the manufacturing base of Fancy Corporation Limited at Borivali,Mumbai and has installed 3 latest computerized embroidery machines in 2001-02. Out of the 4 machines three machines were installed in 2002-03 and erection of two more machines was also completed and the commercial production is expected in the second quarter of the current financial year. The machines were installed at the Borivali plant. The total cost of the expansion were Rs.2650 lac.
The expansion of bobbin lace division under 100% EOU unit at Silvassa was also completed as per the schedule at a estimated outlay of Rs.350 lac which were funded through internal accruals of the company. The Brand Hakoba has also been acquired from Fancy Corporation Ltd.
The company has expanded the installed capacity of Embrodiery during the financial year 2003-04 by 1976470000(Nos) and with this expansion,the total capacity has risen to 3358870000(Nos).
During 2003-04, two Group Companies, Salzer Textiles Ltd. and J J Textiles Ltd. got merged with the Company through the Scheme of Amalgamation, which became effective from March 25, 2004. As per the Scheme of Amalgamation, with a total of 873,684 equity shares of pioneer was allotted to erstwhile shareholders of Salzer Textiles Ltd. and J. J. Textiles Ltd., and resulting the equity of the Company was enhanced to Rs 6.87 Crores, post merger. The erstwhile Salzer Textiles Limited, in which the Company had 54.84% stake, was merged with the Company, and hence ceases to be a subsidiary.
The Company set up a wholly-owned subsidiary, Hakoba Lifestyle Limited (HLL), to carry out the Group's initiative in the retail embroidery sector during the year 2004. Bennett, Coleman and Co. Ltd. (BCCL), India's largest media house, acquired 15% stake in HLL on preferential basis for total consideration of Rs. 10.60 Crores and HLL ceased to be the Company's wholly owned subsidiary during the year 2004-05.
During the year 2006-07, the amalgamation of Grant Apparel Private Limited and Royal Embroideries Private Limited with the Company was implemented and as the said Scheme of Amalgamation, the Company allotted 13,33,333 equity shares on 30th March, 2007 to the shareholders of Royal Embroideries Pvt. Ltd.
The Company expanded its Dope Dyed Polyester Yarn (DDPY) capacity from 7200 TPA to 10500 TPA at Kala Amb, (HP) in the year 2010-11, which became effective from July, 2011.
The Company increased its shareholding in Hakoba Lifestyle Ltd.(HLL) during the year 2016 by Rs 34.97 Crores, following a right issue by HLL. The Company further acquired 20,24,117 equity shares of Rs 10/- each from a minority shareholder of HLL and HLL became a wholly owned subsidiary of the Company during 2016.
The Company had undertaken two planned CAPEX during the year 2023. Under SPFY spinning capacity increased from 18,000 MTA to 26,000 MTA, this has gone on stream beginning June 2023. Modernisation of Embroidery project at Dhule Dist. of Maharashtra, commenced commercial production from August, 2023.
The Draft Scheme of Arrangement between the Company (PEL) and Pioneer Realty Limited involving the Demerger of Embroidery & Bobbin Lace (ELD), or the 'ELD Business' Undertaking, from the Demerged Company into Pioneer Realty Limited was implemented during the year 2022-23.
Pioneer Embroideries share price reflects investor sentiment toward the company and is impacted by various factors such as financial performance, market trends, and economic conditions. Share price is an indicator which shows the current value of the company's shares at which buyers or sellers can transact.
Market capitalization of Pioneer Embroideries indicates the total value of its outstanding shares. Marketcap is calculated by multiplying share price and outstanding shares of the company. It is a helpful metric for assessing the company's size and market Valuation. It also helps investors understand how Pioneer Embroideries is valued compared to its competitors.
Pioneer Embroideries PE ratio helps investors understand what is the market value of each stock compared to Pioneer Embroideries 's earnings. A PE ratio higher than the average industry PE could indicate an overvaluation of the stock, whereas a lower PE compared to the average industry PE could indicate an undervaluation.
The PEG ratio of Pioneer Embroideries evaluates its PE ratio in relation to its growth rate. A PEG ratio of 1 indicates a fair value, a PEG ratio of less than 1 indicates undervaluation, and a PEG ratio of more than 1 indicates overvaluation.
Return on Equity (ROE) measures how effectively Pioneer Embroideries generates profit from shareholders' equity. A higher ROE of more than 20% indicates better financial performance in terms of profitability.
Return on Capital Employed (ROCE) evaluates the profitability of Pioneer Embroideries in relation to its capital employed. In simple terms, ROCE provides insight to investors as to how well the company is utilizing the capital deployed. A high ROCE of more than 20% shows that the business is making profitable use of its capital.
Total debt of Pioneer Embroideries shows how much the company owes to either banks or individual creditors. In simple terms, this is the amount the company has to repay. Total debt can be a very useful metric to show the financial health of the company. Total debt more than equity is considered to be a bad sign.
The Debt-to-Equity (DE) ratio of Pioneer Embroideries compares its total debt to shareholders' equity. A higher Debt to Equity ratio could indicate higher financial risk, while a lower ratio suggests that the company is managing its debt efficiently.
CAGR shows the consistent growth rate of Pioneer Embroideries over a specific period, whether it is over a month, a year, or 10 years. It is a key metric to evaluate the company’s long-term growth potential. Main metrics for which CAGR is calculated are net sales, net profit, operating profit, and stock returns.
Technical analysis of Pioneer Embroideries helps investors get an insight into when they can enter or exit the stock. Key components of Pioneer Embroideries Technical Analysis include:
There are usually multiple support levels, but the main support levels for a stock are S1, S2, S3. Support levels indicate price points where stock might get support from buyers, helping the stock stop falling and rise.
There are usually multiple resistance levels, but the main resistance levels for a stock are R1, R2, R3. Resistance levels represent price points where Pioneer Embroideries shares often struggle to rise above due to selling pressure.
Dividends refer to the portion of the company’s profits distributed to its shareholders. Dividends are typically paid out in cash and reflect Pioneer Embroideries ’s financial health and profitability.
Bonus shares are usually given by companies to make the stock more affordable, increase liquidity, boost investor confidence, and more.
Stock split increases the number of its outstanding shares by dividing each existing share into multiple shares. When the company offers a stock split, the face value of the stock reduces in the same proportion as the split ratio.
The financials of Pioneer Embroideries provide a complete view to investors about its net sales, net profit, operating profits, expenses, and overall financial health. Investors can analyze financial data to assess the company’s stability and also understand how the company has been growing financially.
The profit and loss statement of Pioneer Embroideries highlights its net sales, net profit, total expenditure, and operating profits in the current financial year. This Profit and Loss statement is crucial for evaluating the profitability and financial stability of Pioneer Embroideries .
The balance sheet presents a snapshot of Pioneer Embroideries ’s assets, liabilities, and equity of shareholders, providing insights into the financials of the company.
Cashflow statements track the company's cash inflows and outflows over a period. It is an essential tool for understanding how well the company manages its liquidity and finances.
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