PG Electroplast, a notable player in Electronic Manufacturing Services (EMS) and Plastic Molding, witnessed a 5% surge in its share price following the release of impressive Q2FY25 results. A brokerage firm highlighted that PG Electroplast achieved a 46% year-on-year increase in revenue, reaching ₹671.30 crore, driven by exceptional growth in the product sector. Revenue from room air conditioners (RACs) surged by 211% year-on-year, surpassing forecasts by 10%. This performance cements PG Electroplast’s reputation as a multibagger stock, making it a compelling option for share market investment.
According to the report, the company’s operational efficiency was reflected in its EBITDA, which rose by 50% year-over-year to ₹56.4 crore, while adjusted Profit After Tax (PAT) climbed by 56% to ₹19.3 crore. These figures underscore PG Electroplast’s resilience and ability to outperform in a competitive market, prompting management to raise revenue and PAT guidance by 16% for the coming quarters.
Strategic growth across product categories
PG Electroplast’s expansion in room air conditioners (RACs) and washing machines (WMs) has driven growth in the product sector. The company holds a strong position in the RAC market and a competitive advantage in semi-automatic washing machine models. Additionally, its recent entry into LED TVs, IT equipment, and other EMS categories, supported by the Production-Linked Incentive (PLI) scheme, offers significant growth potential. This diversification is expected to act as a buffer against seasonal fluctuations in RAC sales, thereby providing stable revenue streams.
To fuel its growth ambitions, PG Electroplast plans to allocate ₹370–380 crore in FY25 to expand its production capabilities. The company intends to establish two new facilities in North India and expand its existing site at Supa, strengthening both its manufacturing footprint and market reach. These expansion plans indicate a robust strategy for sustained growth, which should appeal to those considering share market investment in the manufacturing sector.
Analyst insights and price targets
Analysts have given a ‘BUY’ rating on PG Electroplast, with an upgraded target price of ₹765 (up from ₹710), based on a projected price-to-earnings multiple of 50x for the expected Dec-26 earnings. A brokerage report projects a compound annual growth rate (CAGR) of 29% for revenue and 43% for PAT over FY24–27, affirming the stock’s strong momentum. However, it cautioned that risks such as unfavourable weather conditions and potential delays in ramping up new product categories could impact the company’s growth trajectory.
PG Electroplast share price performance and market trends
Over the past year, PG Electroplast’s share price has surged by an impressive 232.35%, outperforming its sector by 137.3%. The stock opened at ₹631.40 on the BSE, reached an intraday high of ₹680.95, and dipped to a low of ₹624.40, demonstrating a steady upward trend.
For investors interested in share market investment, PG Electroplast represents a high-growth opportunity, particularly with its strong product diversification and recent expansion plans. As the company scales its operations in response to growing demand across various product categories, it could continue to deliver substantial returns in the coming years.
Is PG Electroplast a smart share market investment?
PG Electroplast’s solid Q2FY25 performance, impressive revenue growth, and strategic expansion into new product categories make it an attractive option for share market investment. With favourable analyst ratings, strong support levels, and a forward-looking strategy, the stock holds the potential for long-term gains. However, as with any investment, prospective investors should keep an eye on market trends and potential risks as PG Electroplast continues its growth journey.
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