The shares of leading electronics manufacturing services providers gained up to 2 percent after the company’s subsidiary received approval from the Government of India under the Production Linked Incentive (PLI) Scheme.
With a market capitalization of Rs 22,963.14 crore, the shares of PG Electroplast Limited were trading at Rs 810.65 per share, decreased around 5.29 percent as compared to the previous closing price of Rs 855.95 apiece.
Reason for Rise
According to the company filing, Next Generation Manufacturers Private Limited, a step-down subsidiary of PG Electroplast Limited, has received approval from the Government of India under the Production Linked Incentive (PLI) Scheme for 3rd Round of White Goods under the Air Conditioner Components category. It will be investing Rs 121.35 Crores over a period of five years.
Management guidance
According to the recent concall, PG Electroplast Limited is targeting a compound annual growth rate (CAGR) of 35-40 percent over the next three to four years, with plans to double its revenue while maintaining margins at 7.5-8%.
Moreover, the company will also consider revising its 2024-25 revenue guidance from the current target of Rs 4,205 crore with the third quarter tracking well so far, said Managing Director Vikas Gupta.
PG Electroplast’s growth is driven by its partnership with Whirlpool, which exclusively collaborates with the company for washing machines, contributing 20% of its revenue. With plans to expand washing machine production capacity to 2.4 million units annually, this partnership underscores strong growth potential.
PG Electroplast expects ₹450-500 crore revenue from washing machines in 2024-25 and plans to start EV and battery pack production for two-wheelers by Q1 FY26. The company targets ₹500-600 crore in revenue from the EV bike segment within two years of operations.
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Financial performance
Looking forward to the company’s financial condition, revenue increased slightly by 46 percent from Rs 460 crore in Q2FY24 to Rs 671 crore in Q2FY25, net profit increased by 58 percent from Rs 12 crore to Rs 19 crore.
Product Segment Growth
The company’s Room AC revenue reached ₹1,118 crore, up 143% YoY while washing machines grew 41% and air coolers surged 267% YoY. A strong order book and robust product visibility signal significant growth potential in FY25 across its key segments.
Market Dynamic
The management is focused on boosting capital efficiency by improving asset turns, while growing interest from new and existing clients signals robust future growth prospects, reflecting strong market dynamics and a strategic approach to sustaining and accelerating business performance.
Company profile
PG Electroplast is a significant and diverse Indian provider of electronic manufacturing services. It specializes in Original Design Manufacturing (ODM), Original Equipment Manufacturing (OEM), and Plastic Injection Molding, serving over 50 major Indian and global businesses.
Written by Abhishek Singh
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