Indian benchmark indices snapped a five-day losing streak and ended higher on July 26 with Nifty touching a fresh lifetime high of 24,861.15.
At close, the Sensex was up 1,292.92 points or 1.62 percent at 81,332.72, and the Nifty was up 428.70 points or 1.76 percent at 24,834.80.
Listed below is one such Small cap stock that has delivered multibagger returns of 10,898 percent to its stakeholders in 4 years:
PG Electroplast Ltd
With a market capitalization of Rs. 11,490 crores, the shares of the electronic manufacturing services provider started Friday’s trading session, on a higher note at Rs. 464.10 compared to its previous close of Rs. 449.55. During the trading session, the shares hit a low of Rs. 434.50, losing around 2 percent and closed the day at Rs. 441 apiece.
Financials:
Looking at the company’s financial performance, the revenue increased by 23 percent from Rs. 1,077 crores during the March quarter to Rs. 1,321 crores in the June quarter. In addition, net profits surged by 20 percent from Rs. 70 crores to Rs. 84 crores during the same period.
Comparing the same metrics on a YoY basis, the revenue zoomed by 95 percent from Rs. 678 crores during Q1FY24 to Rs. 1,321 crores in Q1FY25. On the other hand, the net profits magnified by 147 percent from Rs. 34 crores to Rs. 84 crores during the same timeframe.
Returns:
In July 2020, the stock price was trading at Rs. 4 exhibiting a gain of around 10,898 percent compared to the current price. For example, if someone had invested Rs. 10,000 into the company’s stock 4 years ago, it would have converted to approximately Rs. 10.99 lakhs now.
Management Guidance for FY25:
PG Electroplast Limited expects its consolidated revenue to reach Rs 3,650 crores in FY25 representing a 32.9 percent increase from a revenue of Rs 2,746 crores in FY24.
This growth is projected even though the TV business revenue will now be counted under a joint venture company, Goodworth Electronics Ltd., which is expected to generate Rs. 600 Crores in revenue.
The company expects a net profit of Rs. 216 crores in FY25, reflecting a 57.7 percent increase over the FY2024 net profit of Rs. 137 crores. In FY2025, the company’s management anticipates a slight increase in EBITDA margins.
Additionally, growth in the product business covering WM, RAC, and Coolers is expected to rise by approximately 58.8 percent, reaching over Rs. 2,650 crores, up from Rs.1,668 crores in FY2024.
Furthermore, the company is developing new offerings in focus segments and will be launching the same in the coming quarters.
Shareholding Pattern:
According to the latest shareholding pattern, Promoters possess 74.18 percent of the shares, while Foreign Institutional Investors (FIIs) hold 6.95 percent, Domestic Institutional Investors (DIIs) maintain an 8.86 percent stake, and Retail Investors account for the remaining 10.01 percent.
Important Financial Ratios:
In terms of key financial metrics, the company reported a return on equity of 12.99 percent and a return on capital employed of 16.97 percent for the period spanning FY23-24. Additionally, the net profit margin stood at 4.98 percent during the same timeframe.
Company Profile:
PG Electroplast Limited (PGEL) is the flagship company of PG Group. While the PG Group started its journey in 1977, PG Electroplast was formally set up in 2003 and is a leading, diversified Indian Electronic Manufacturing Services provider.
It specializes in Original Design Manufacturing (ODM), Original Equipment Manufacturing (OEM) and Plastic Injection Molding, catering to 50+ leading Indian and Global brands.
Written By Vaibhav Patil
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