A leading player in the electronic manufacturing services sector has drawn attention with its strong revenue guidance of Rs.4,850 crore. This outlook reflects the company’s efforts to expand its operational capacity and capture emerging opportunities in the market.
Share Price Movement
In Friday’s trading session, PG Electroplast Ltd’s share price rose by 5 percent, hitting an intra-day high of Rs.1,009.70 per share, up 5 percent from the previous close of Rs.962.60 per share. The shares have since retreated and closed at Rs.991.00 per share. Over the past five years, the stock has delivered over 17,500 percent returns.
What happened
For FY25, PG Electroplast has revised its operating revenue guidance to at least Rs.4,250 crore, with an additional Rs.600 crore expected from its joint venture, Goodworth Electronics, totaling Rs.4,850 crore in operating revenue. This represents a 77 percent growth compared to FY24.
The company has also updated its net profit guidance to at least Rs.250 crore, marking an 83 percent increase from FY24’s Rs.137 crore. The product businesses, including washing machines, room air conditioners, and air coolers, are anticipated to grow by 78 percent, reaching Rs.2,975 crore from Rs.1,668 crore.
Capital expenditure guidance is set between Rs.370 to Rs.380 crore, with progress on infrastructure and capacity expansion proceeding as planned. The company is on track to meet its expansion targets for the year.
Recent Developments
PG Electroplast has recently announced key strategic developments across various sectors. On December 24, 2024, it partnered with Whirlpool of India to produce semi-automatic washing machines, enhancing its role in the growing consumer electronics market.
The company also completed a Qualified Institutional Placement (QIP), raising Rs.1,500 crore to fund capacity expansion and technological upgrades.
Additionally, through its subsidiary PG Technoplast, it entered the electric vehicle (EV) market, signing an agreement with Spiro Mobility in November 2024 to manufacture EVs and lithium-ion batteries, positioning itself to leverage the rising demand for EVs in India.
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Financials
In its recent financial updates, PG Electroplast Ltd reported a 46 percent increase in revenue to Rs.671 crore in Q2 FY25 compared to Rs.460 crore in the same quarter last year, while net profits surged 58 percent to Rs.19 crore from Rs.12 crore in the same period.
Shareholding Pattern
As per the shareholding pattern for September 2024, the promoters of PG Electroplast Ltd hold a 49.37 percent stake, while Foreign Institutional Investors (FIIs) own 11.17 percent. Domestic Institutional Investors hold 14.81 percent and Retail investors hold 24.47 percent of the company’s shares.
About the Company
PG Electroplast Limited (PGEL) is a prominent Indian EMS provider, specializing in OEM and ODM for consumer electronics and appliances. The company delivers comprehensive solutions, including plastic injection molding and PCB assemblies, to top global brands in industries such as automotive and consumer durables.
Written by – Siddesh S Raskar
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