Multibagger PG Electroplast share price surges 5% as Q2 results beat estimates. Should you buy?

Multibagger stock: PG Electroplast share price climbed almost 5% after the company reported strong Q2 results. Brokerage Nuvama Institutional Equities noted in its report that the Electronic Manufacturing Services and Plastic Molding company achieved an impressive Q2FY25, with revenues rising 46% year-on-year to ₹671.30 crore, driven by robust growth in the product sector (RACs increased by 211% YoY), surpassing forecasts by 10%.

As per the brokerage report, EBITDA increased by 50% year-over-year, reaching ₹56.4 crore, while adjusted PAT rose by 56% year-over-year to ₹19.3 crore, highlighting PG Electroplast's operational robustness and market resilience exceeding expectations. Importantly, management has elevated their revenue and PAT guidance by 16%, reflecting PG Electroplast’s strong momentum.

“We reckon PG Electroplast shall post a revenue/PAT CAGR of 29%/43% over FY24–27E, valuing the stock at 50x Dec-26E EPS yielding a target price of ₹765 (earlier ₹710); retain ‘BUY’. Key risks: Unfavourable weather conditions and delay in new category ramp-up,” said Nuvama in its report.

Additionally, the brokerage pointed out that the company's rapid expansion in room air conditioners (RACs) and washing machines (WM) is driving its product sector, with RAC maintaining market leadership and WM having a competitive advantage in semi-automatic models. The firm’s entry into LED TVs, IT equipment, and EMS, backed by the PLI scheme, offers a strong growth buffer against the seasonal fluctuations in RAC sales. The company plans to allocate ₹370–380 crore in FY25 to fuel growth through the establishment of two new facilities in North India and an expansion of the Supa site, enhancing both its production capabilities and market presence.

PG Electroplast share price

According to trendlyne, PG Electroplast share price has surged 232.35% and outperformed its sector by 137.3% in the past year. PG Electroplast share price today opened at ₹631.40 apiece on BSE, the stock touched an intraday high of 680.95, and an intraday low of ₹624.40 per share.

According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, after Monday's selloff, prices are attempting a bounce back in today's session. Prices are holding on to a key support of 20DEMA and as long it holds one can expect the uptrend to resume. ₹640 is strong support whereas ₹700 is resistance.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.