PG Electroplast
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
PG Electroplast's management has expressed cautious optimism for FY27, highlighting a strategic shift towards backward integration to enhance supply chain stability and improve margins. Despite facing significant challenges in FY26, including demand shocks and supply chain disruptions, the company anticipates a structural recovery driven by operational efficiencies and a focus on high-value ODM business. Vista's financial outlook reflects an expectation of accelerating revenue growth beyond historical trends, supported by a stable margin environment and a disciplined capital allocation strategy aimed at achieving a 4x asset turn by 2029. The EMS sector's steady growth, bolstered by government support and a shift towards higher-margin markets, further underpins PGEL's positive trajectory. However, key risks include currency volatility and commodity price fluctuations, which could impact profitability. Over the next 12-24 months, PGEL's opportunities lie in leveraging its expanded manufacturing capabilities and launching new products, while watchpoints include the successful scaling of these initiatives and managing external economic pressures
Why We Like This Stock
- Management's focus on backward integration is expected to enhance supply chain stability and improve long-term margins
- The EMS sector's growth trajectory and government support provide a favorable backdrop for PGEL's expansion efforts
- Operational efficiencies from SAP migration and scaling of the washing machine business are anticipated to drive revenue growth
Things To Watch Out For
- Continued volatility in the INR/USD exchange rate poses a risk to profitability
- Commodity price inflation remains a significant concern that could impact margins
- The successful scaling of new product categories like refrigerators and ceiling fans is uncertain and may affect market share
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 2,746 | 4,870 | 5,288 | 6,086 | 7,876 |
| Profit Before Tax (Cr.) | 177 | 365 | 252 | 280 | 394 |
| PBT Margin | 6.4% | 7.5% | 476.6% | 4.6% | 5.0% |
| Net Profit (Cr.) | 137 | 295 | 204 | 224 | 314 |
| Earnings Per Share | 4.8 | 10.3 | 7.1 | 7.8 | 11.0 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Anand Rathi | ▲ Buy | 675 | 29-May-2026 |
| JMFinancials | ▲ Buy | 570 | 29-May-2026 |
Company Overview
Show Company Profile
PG Electroplast Limited provides electronic manufacturing services for original equipment manufacturers in India and internationally. The company manufactures and/or assembles various consumer electronic components and finished products, such as kitchen appliances, air conditioners sub-assemblies, air cooler, washing machines, mobile handsets, and LEDs for third parties. It also offers automotive components; printed circuit board assemblies; LED televisions; bathroom fittings; and consumer electronics components. In addition, the company provides plastic moulding and other component, as well as engages in sheet metal parts and advanced tool manufacturing. PG Electroplast Limited was founded in 1977 and is based in Greater Noida, India.