Multibagger PG Electroplast stock jumps 16% to record high on solid Q1 show, up nearly 10000% in 5 years

Shares of PG Electroplast, the flagship entity of the PG Group, experienced a notable 16% increase in early trading today, reaching a new all-time high of ₹464 per share. This surge follows the company's announcement of its Q1 FY25 financial results on Wednesday.

The company's shares have been trading on an ex-split basis since July 10, following a 10:1 split ratio. Over the past three years, the stock has achieved an impressive 1054% gain, and over the past five years, it has soared by a staggering 9853%.

The company reported consolidated revenues of ₹1,320 crore for the quarter, with product business sales accounting for ₹993 crore. The product segment, which includes room air conditioners, washing machines, and coolers, contributed 75.2% of total revenues in 1QFY2025. 

Notably, the Room AC business grew by 130% to ₹882 crore, the Washing Machines segment saw a 72% increase, and the Coolers segment surged by an impressive 287%.

The company's order book for the product business remains strong, and it is poised to significantly expand this segment in FY2025. Meanwhile, the TV & Electronics division contributed 7.6% of total revenues and grew by 104% in the same quarter.

Operating margins improved to 10.2% from 9.9% in Q1 FY24, driven by effective cost control and operational leverage. Profit after tax surged by 151% year-over-year to ₹84.93 crore, with the profit margin increasing by 6.4%.

PG Electroplast also reported a reduction in net debt by approximately ₹103 crore during the quarter, with strong operating cash flow and an ongoing focus on working capital optimization.

The company specializes in original design manufacturing (ODM), original equipment manufacturing (OEM), and plastic injection moulding, providing one-stop solutions to over 70 leading Indian and global brands.

Guidance has been revised higher for FY25

The company has revised its revenue guidance for FY25 upwards, now targeting ₹3,650 crores, reflecting a 32.9% increase over FY24 consolidated revenues. This adjustment accounts for the shift of the TV business to Goodworth Electronics. The updated net profit guidance stands at ₹216 crore, marking a substantial 57.7% growth from FY24’s net profit of ₹137 crore.

For Goodworth Electronics, the revenue projection is set at ₹600 crore for FY25, contributing to a total group revenue estimate of ₹4,250 crore.

The company expects the product business, including washing machines and room air conditioners, to grow by approximately 59%, reaching ₹2,650 crore from ₹1,668 crore in FY24.

Capital expenditure for FY25 is projected to be between ₹370 and 380 crores, with plans to invest in two new greenfield facilities in North India and further expand the Supa facilities, according to the company's earnings report. 

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