Synopsis:
PG Electroplast is in focus after its subsidiary signed an MoU with the Maharashtra government to invest Rs. 1,000 crore in a greenfield consumer electronics manufacturing facility.
An Indian Electronic Manufacturing Service provider, specialized in ODM and OEM, is in the spotlight after signing an MoU with the Government of Maharashtra to invest Rs. 1,000 crore.
With the market capitalization of Rs. 15,528.71 crore, the shares of PG Electroplast Ltd trading at Rs. 548.50, up by 2.89 percent from its previous day’s close price of Rs. 533.10 per equity share, and it has reached an intraday high of Rs. 557.05.
What’s the News?
PG Electroplast’s step-down subsidiary, Next Generation Manufacturers Pvt Ltd, has signed an MoU with the Government of Maharashtra to invest Rs. 1,000 crore in a greenfield consumer electronics manufacturing facility at Kamargaon, Ahilyanagar.
Part of the Magnetic Maharashtra initiative, the project will produce air conditioners, washing machines, refrigerators, and allied products, creating over 5,000 direct and indirect jobs and boosting the consumer electronics ecosystem in western India.
Commentary
Maharashtra Chief Minister Devendra Fadnavis called the MoU a major milestone, promising government support at every stage to ensure smooth implementation, an investor-friendly environment, and faster industrial growth through initiatives such as the Maitri Portal and lower power tariffs under the new energy policy.
Vishal Gupta, MD – Finance, stated that the Rs. 1,000 crore project reflects PG Electroplast’s commitment to creating a world-class, vertically integrated consumer electronics manufacturing in India. This will boost the local components ecosystem, create large-scale employment, and contribute to Maharashtra’s industrial growth with strong government support.
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About the Company & Others
PG Electroplast Limited (PGEL) is a leading provider of electronic manufacturing services (EMS) and contract manufacturing for top consumer durable and electronics brands in India, with large plastic injection molding capacity and capabilities across Original Equipment Manufacturing (OEM) and Original Design Manufacturing (ODM) products, including washing machines, room ACs, air coolers, and LED TVs.
In Q1FY26, the company reported revenue of Rs. 1,504 crore, up 13.8 percent YoY from Rs. 1,321 crore but down 21.3 percent QoQ from Rs. 1,910 crore. Net profit was Rs. 67 crore, down 20.2 percent YoY from Rs. 84 crore and 53.8 percent QoQ from Rs. 145 crore, reflecting strong annual growth in sales but a decline in profitability both sequentially and yearly.
At the movement, the company’s P/E stands at 57.1x higher as compared to industry average of 27.2x. With ROE of 14.9 percent, ROCE of 19.4 percent and Debt to Equity ratio of 0.14, indicated the company’s strong financial position.
Written by Akshay Sanghavi
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