Pearl Global (BSE: 544602) sits at a pivotal inflection point, with Motilal Oswal targeting a 14% upside to ₹1,500 from its current market price of ₹1,318. The brokerage identifies capacity scaling as the primary growth engine, projecting an expansion from ~108 million pieces to 120–140 million by FY28 and 170–175 million by FY30, all while maintaining roughly 80% utilization. This isn’t just volume; it’s a structural shift in margins.
The financial trajectory is steep. Motilal Oswal estimates a 17% revenue CAGR, 32% EBITDA CAGR, and a striking 38% PAT CAGR between FY26 and FY28. EBITDA margins are slated to expand into the 12–14% band, with RoCE climbing to 22–25%. Management has outlined a ₹6.75–7.25 billion capex plan through FY30, splitting the spend between capacity expansion (₹3.25–3.50 billion) and vertical integration in knitting/dyeing (₹3.5–3.75 billion). This move aims to lift knits from 26% to 35% of capacity while slashing washing outsourcing from 60% to just 20–25%, a direct lever for margin protection.
Indegene (BSE: 543281) offers a different value proposition in the healthcare technology space. The brokerage rates it a BUY, targeting ₹708 against a CMP of ₹608, implying a 16% gain. The thesis rests on the surge in pharma outsourcing, where life sciences firms are shedding non-core operations to focus on R&D. Indegene’s integrated platform—spanning clinical, regulatory, and commercial ops—positions it to capture this shift.
Operationally, Indegene remains in the top quartile for revenue per employee. The model projects a 19% revenue CAGR and 27% PAT CAGR over FY26-28. The key metric here is margin recovery; EBITDA is expected to bounce back to 19–20% by the fourth quarter of FY27, driven by operating leverage as the company scales its data and analytics backbone.
For the week commencing September 28, 2026, these two picks represent a mix of manufacturing scale-up and services deleveraging. Investors should note that Motilal Oswal’s targets assume stable macro conditions and successful execution of the outlined capex plans.