PG Electroplast surges 16% on strong Q1 results; zooms 194% in 4 months

PG Electroplast stock rises: Shares of PG Electroplast (PGEL) hit a new high of Rs 464.85, surging 16 per cent on the BSE in Thursday’s intra-day trade in an otherwise weak market.

The uptick in the share price came after PGEL reported a robust performance as its net profit jumped 151.2 per cent year-on-year (Y-o-Y) to Rs 84.93 crore in June quarter (Q1FY25), on back of strong operational performance. The consumer electronics company had posted profit of Rs 33.81 crore in Q1FY24.

Earnings before interest, taxes, depreciation, and amortisation (Ebitda) doubled to Rs 134.52 crore from Rs 67.1 crore in a year ago quarter. Ebitda margin improved 30 basis points (bps) to 10.2 per cent during the quarter. Operating revenues for the quarter rose 94.9 per cent Y-o-Y at Rs 1,320.68 crore.

 

At 09:49 AM, the stock was trading 9 per cent higher at Rs 437.90, as compared to 0.65 per cent decline in the BSE Sensex. In past four months, the market price of PGEL has zoomed 194 per cent from level of Rs 157.85 (adjusted to 1:10 stock split).

Meanwhile, PGEL 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 said in press release.

Earlier, PGEL had guided revenue and net profit of Rs 3,400 crore and Rs 200 crore for FY25, respectively.

Capital expenditure (Capex) for FY25 will also be in the range of Rs 370-380 crore, and the company will invest in 2 new green field facilities in North India and further expand Supa facilities, PGEL said.

PGEL specialises in Original Design Manufacturing (ODM), Original Equipment Manufacturing (OEM) and Plastic Injection Moulding, providing One Stop Solutions to over 70 leading Indian and global brands.

The management said PG's product division has accomplished significant success; demonstrating strong growth leadership in key areas such as room air conditioners (RACs) and Washing Machines.

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 and the gradual improvement in margins due to operational efficiencies and operating leverage.