PG Electroplast soars 8%, hits new high on strong business outlook

For FY23, the company has maintained sales guidance of Rs 1,800 crore, up 64 per cent over FY22

Shares of PG Electroplast hit a new high of Rs 1,228 as they rallied 8 per cent on the BSE in Tuesday's intra-day trade, in an otherwise range-bound market. The stock of the consumer electronics company surpassed its previous high of Rs 1,184, touched on January 12, 2023. In comparison, the S&P BSE Sensex was down 0.01 per cent at 60,938 at 02:26 PM.

PG Electroplast is a partner for manufacturing solutions for leading consumer durables and consumer electronics companies in India. It has one of the biggest capacities in the plastic injection molding and has capabilities across the value chain for producing components and fully built Home Appliances and Electronics Manufacturing Services (EMS) industries.

In the past six months, the stock has rallied 31 per cent, as compared to 8.7 per cent rise in the S&P BSE Sensex. Further, in the past one year, it has zoomed 70 per cent as against 6 per cent gain in the benchmark index.

In the first half (April to September) of the financial year 2022-23 (H1FY23), PG Electroplast's net profit more-than-doubled to Rs 23.57 crore from Rs 4.24 crore in the same period last fiscal. Net sales jumped 156.9 per cent year-on-year to Rs 863 crore.

Operating profit margins ex-of forex loss have remained largely stable, softening commodity prices, and operating leverage in coming quarters should help the margins during the rest of the year, the company said.

The management said the outlook for the company remains strong as the product business continues to scale up to its potential through addition of new clients and through increases in wallet share from its existing clients.

For FY23, the company has maintained the sales guidance of Rs 1,800 crore, which is a growth of 64 per cent over FY22 consolidated sales, and operating profit guidance of Rs 125 crore, which is a growth of 68 per cent over FY22 operating profit of Rs 75 crore.

The growth in product business i.e., washing machines, room air conditioners and coolers is expected to be around 120 per cent from Rs 478 crore in FY22 to Rs 1,050 crore in FY23, the company had said while announcing Q2 results on November 14.