PG Electroplast delivered robust topline development in This autumn, with revenues rising 77% YoY to Rs 19 billion, pushed largely by strong demand within the product enterprise—particularly within the room AC and washer segments. FY2025 as a complete was a standout yr, with consolidated revenues rising 77.3% to Rs 48.70 billion, regardless of declining common promoting costs throughout classes.
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Nirmal Bang Report
PG Electroplast Ltd. has guided for consolidated gross sales of no less than Rs 63 billion in FY26. Revenues from its subsidiary Goodworth are anticipated to be round Rs 8.55 billion, taking the group’s complete projected revenues to ~Rs 72 billion. Web revenue steerage for PG Electroplast stands at Rs 4 billion. The product enterprise—which incorporates Washing Machines, Room Air Conditioners, and Coolers—is predicted to contribute round Rs 47 billion.
We mannequin PG to ship a strong income/PAT CAGR of 31%/37%, over FY25–FY27E.
The inventory presently trades at 56x/42x its estimated EPS for FY26/FY27, and whereas these premium valuations are supported by the corporate’s robust execution and scalable enterprise mannequin, we see restricted near-term upside following a pointy run-up of ~300% previously yr, 35% within the final six months, and 10% at present.
Because of this, we preserve our Maintain score with a goal value of Rs 960 (46x FY27E EPS), remaining structurally constructive however preferring to attend for extra engaging entry factors. That mentioned, ROE is predicted to settle at ~16% by FY27—not significantly excessive—reflecting the impression of rising capex and dealing capital wants in new enterprise traces.
Whereas some assist might come from demand in room AC and scale advantages in low working capital classes like PCBA and IT {hardware}, these are unlikely to completely offset the drag within the close to time period.
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