Multibagger PG Electroplast stock gains over 8% to record high on solid Q4 show, up 3670% in 5 years

Shares of PG Electroplast, the flagship institution of PG Group, surged by 8.4% successful aboriginal greeting trading today, reaching a caller all-time precocious of ₹2598.90 apiece pursuing the merchandise of the company's Q4 and afloat fiscal (FY24) twelvemonth show connected Wednesday.

The stock's existent rally has resulted successful a singular summation of 611% implicit the past 3 years and an astounding 3670% implicit the past 5 years.

In the March quarter, the company's operating revenues totaled ₹1,076.6 crore, marking a 30.0% year-over-year growth. Quarterly EBITDA stood astatine ₹119.8 crore, compared to ₹76.9 crore successful 4QFY2023, representing a robust maturation of 55.8%.

On the bottommost line, the institution reported a nett net of ₹71.59 crore for the quarter, up from ₹40.17 crore successful 4QFY2023, marking a maturation of 78.2%. 

For the afloat fiscal year, the company's revenues from operations accrued by 27.2% year-over-year to ₹2,746.5 crore, portion nett net surged to ₹137.0 crore from ₹77.5 crore, representing a maturation of 76.9%.

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For the archetypal time, consolidated revenues for FY24 surpassed ₹2,746 crore, with merchandise concern income crossing ₹1,668 crore. PGEL’s 100% subsidiary, PG Technoplast, achieved revenues of implicit ₹1,450 crore successful its 3rd twelvemonth of operations.

The merchandise concern contributed 72% of the full revenues successful 4QFY24 and 60.7% for FY2024, increasing by 25% year-over-year for the 4th and 24% for the afloat fiscal year. The institution emphasised that its bid publication for the merchandise concern remains robust and anticipates important scaling of the merchandise concern successful FY2025.

The company's TV and electronics concern contributed 13.6% of the full revenues and experienced a singular 132% maturation successful FY2024. The institution announced that the TV concern volition displacement to the caller 50% JV, Goodworth Electronics, successful FY2025.

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Despite capex and the acquisition of NGM, nett indebtedness decreased by astir ₹325 crore successful FY24, the institution said successful its net report. 

Guidance for FY2025

PG Electroplast is 1 of the starring diversified Indian Electronic Manufacturing Services providers and declaration manufacturing to the starring user durables and electronics brands successful India. 

The institution has 1 of the biggest capacities successful integrative injection molding and has capabilities crossed the worth concatenation successful archetypal instrumentality manufacturing (OEM) and archetypal plan manufacturing (ODM) products similar washing machines, country ACs, aerial conditioners, and LED TVs.

PGEL projects revenues to soar to ₹3,400 crores, marking a important 23.8% surge implicit the erstwhile fiscal year's consolidated revenues, contempt the modulation of its TV concern to Goodworth Electronics. 

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Additionally, the institution anticipates nett net to skyrocket to ₹200 crores, reflecting a robust 46.0% maturation implicit the FY2024 nett net of ₹137.0 crores.

"The gross guidance for Goodworth Electronics is for ₹600 crores successful FY2025, implying radical revenues of ₹4000 crore. The maturation successful the merchandise business, i.e., washing machines, country aerial conditioners, and aerial coolers, is expected to beryllium 44% to ₹2,400 crores from ₹1668 crores successful FY2024," the institution said successful its Q4 net report. 

In enactment with its maturation trajectory, PGEL plans a capex ranging from ₹370–380 crores for FY2025. The institution volition usage these funds to found 2 caller greenfield facilities successful North India and further grow its Supa facilities.

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Future Outlook 

Government reforms specified arsenic Digital India, Make successful India, Power for All, and the Jan Dhan-Aadhar-Mobile Trinity are injecting caller momentum into the user appliance and durable industry. The accelerated gait of urbanisation, coupled with a increasing young colonisation and rising income levels, is fostering the emergence of a important mediate people successful India, indicating important imaginable request for the user appliance and durable marketplace successful the coming years.

Low penetration levels, declining prices of durables and electronics, and the evolving lifestyles of Indian consumers are expected to stay large request catalysts for the user durables and electronics manufacture successful India successful the adjacent future.

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Furthermore, the government's initiatives to beforehand physics manufacturing and dainty the manufacture arsenic a cardinal pillar of the Digital India Program are opening up caller and breathtaking opportunities for the industry.

PG Electroplast is optimistic astir the wide accidental size and anticipates precocious maturation rates successful the manufacture segments wherever the institution has a presence.

With its recently acquired capacities and capabilities, the institution believes it is uniquely positioned successful the user durables and plastics abstraction successful India.

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In the coming years, the institution aims to execute industry-leading gross growth, gradual borderline betterment done operational efficiencies and operating leverage, and best-in-class superior ratio resulting from improved currency flows and equilibrium expanse optimisation.

Disclaimer: The views and recommendations fixed successful this nonfiction are those of idiosyncratic analysts. These bash not correspond the views of Mint. We counsel investors to cheque with certified experts earlier making immoderate concern decisions.

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Published: 23 May 2024, 10:24 AM IST