This smallcap stock has gained 106% in 3 months; up 307% in so far in FY25
Source: Business Standard
Illustration by Binay Sinha
PG Electroplast stock price today: Shares of PG Electroplast (PGEL) hit a new high of Rs 675, as they rallied 7 per cent on the BSE in Wednesday’s intra-day trade in otherwise subdued market strong growth outlook. The stock surpassed its previous high of Rs 647.75 touched on September 18, 2024. In comparison, the BSE Sensex trading 0.12 per cent lower at 84,812 at 01:05 pm.
In three months, stock of consumer electronics company has zoomed 106 per cent from level of Rs 327.75. Thus far in financial year 2025 (FY25), the stock market price of PG Electroplast has skyrocketed 307 per cent from Rs 165.70 levels.
On July 10, 2024, PG Electroplast stock turned ex-split in the ratio of 10:1 i.e. from Rs 10 to Rs 1. PGEL had said the rationale behind stock split with a view to enhance the liquidity of company’s equity shares and to encourage participation of retail investors by making equity shares of the Company more affordable.
What does PG Electroplast do?
PG Electroplast is one-stop solution provider for Electronic Manufacturing Services (EMS) and contract manufacturing to most leading consumer durable and electronics brands in India. The company has one of the biggest capacities in Plastic Injection molding and has capabilities across the value chain in Original Equipment Manufacturing (OEM) and Original Design Manufacturing (ODM) products like Room ACs, Washing Machines, Air-Coolers, and LED TVs.
The management sees increased opportunities in the existing and new clients based on the current business environment. With new capacities and capabilities, the company is uniquely positioned in the consumer durables & plastics space in India. In coming years, the company aspires to have Industry-leading growth in Revenues, gradual improvement in margins due to operational efficiencies and operating leverage, best-in-class capital efficiency resulting from improved cash flows & balance sheet optimization.
PG Electroplast said the Immediate global economic outlook remains mixed as though global inflation is expected to cool off in coming months, but employment picture is also showing signs of moderation, continued trade wars and geopolitical tension in Europe and Middle East further complicate the situation.
Given the positive demographic changes and increasing household incomes, strong structural growth is expected in the consumer durable segment in India. Therefore the management believes that in coming years, the company has huge potential market in existing areas of focus and large new opportunities are emerging due to shift in global supply chains.
Meanwhile, PG Electroplast revised its revenue and net profit guidance upwards for the financial year 2025 (FY25).
“Revenues guidance is now revised to Rs 3,650 crore, which will be a growth of 32.9 per cent over FY24, consolidated revenues (despite the shift of TV business to Goodworth Electronics). Revised net profit guidance now stands at Rs 216 crore, which will be a growth of 57.7 per cent over the FY24 net profit of Rs 137 crore,” the company had said in press release.
Earlier, PGEL had guided revenue and net profit of Rs 3,400 crore and Rs 200 crore for FY25, respectively.
The growth in product business is expected to be around 59 per cent to Rs 2,650 crore from Rs 1,668 crore in FY2024. This growth can be attributed to strong demand for washing machines, air coolers and room air conditioners. To support this growth, the Company plans to expand its manufacturing capacity by establishing a new integrated unit in Rajasthan for room ACs and a new greenfield facility in Greater Noida for washing machines, further enhancing its capital efficiency and business growth.
First Published: Sep 25 2024 | 1:59 PM IST
