Share price of one of the leaders in Electronic Manufacturing Services and Plastic Molding in India, hit a fresh 52-week high at Rs. 2,639.8 in the morning trading session of Thursday, after reporting a rise in net profit of 272.33 percent QoQ and 78.2 percent YoY.
With a market capitalisation of Rs. 6,568.8 crore, at 12:01 p.m., the shares of PG Electroplast Limited (PGEL) were trading in the green at Rs. 2519.95, up by 5.9 percent.
The fluctuations in the share prices were observed after the company announced the financial results for Q4 FY23-24 and FY24, through the recent filings with the stock exchanges on Wednesday post-market hours.
In FY23-24, the company successfully expanded its capacities in the RAC business and formed new partnerships for the Electronic and IT hardware business.
The revenue from operations stood at Rs. 1,076.6 crore in Q4 FY23-24, indicating a growth of 102.4 percent QoQ from Rs. 531.88 crore in Q3 FY23-24, while on a year-on-year basis, it increased by 30 percent from Rs. 828.22 crore in Q4 FY22-23.
PGEL witnessed a rise in the net profit to Rs. 71.6 crore in Q4 FY23-24, increasing from Rs. 19.23 crore in Q3 FY23-24 by 272.33 percent QoQ, and from Rs. 40.2 crore in Q4 FY22-23 by 78.2 percent YoY.
On a year-on-year basis, the company’s Earnings Before Interest, Taxes, Depreciation, and Amortisation, or EBITDA stood at Rs. 119.8 crore in Q4 FY23-24, as against Rs. 76.9 crore in Q4 FY22-23, registering a growth of 55.8 percent.
During FY23-24, the company increased its capacity across Room AC with new greenfield capacity in Bhiwadi and increased its Product business by over 24 percent.
In FY23-24, the company’s Return on Capital Employed (RoCE) stood at 21.6 percent and its Return on Equity (RoE) post-capital raise was 19.1 percent, along with the improvement in capital efficiency.
PGEL’s management sees increased opportunities in the existing and new clients based on the current business environment, while with new capacities and capabilities, the company is uniquely positioned in the consumer durables & plastics space in India.
PGEL expects to make around Rs. 3,400 crore in revenue, which is a 23.8 percent growth from FY23-24, despite TV business revenues shifting to JV
company Goodworth Electronics Ltd., and also anticipates a net profit of Rs. 200 crore, a 46 percent rise from Rs. 137 crore in FY23-24.
Goodworth Electronics is projected to generate Rs. 600 crore in revenue for FY24-25, resulting in a total group revenue of Rs. 4,000 crore.
The growth in product business i.e., Washing Machines, Room Air Conditioners and Air Coolers is expected to be nearly 44 percent to Rs. 2,400 crore in FY24-25 from Rs. 1,668 crore in FY23-24.
The company’s capex for FY24-25 will be in the range of Rs. 370-380 crores and will invest in 2 new green field facilities in North India and expand Supa facilities further.
Additionally, the company’s Board approved the stock split in the ratio of 1:10, implying that each Rs. 10 paid-up share will be subdivided into 10 shares of Re. 1 each, and has also approved the final dividend of Rs. 0.20 on each split share of Rs. 1 face value.
The stock has delivered positive returns of nearly 72.3 percent in one year and around 5 percent in the last six months. So far in 2024, the company has given about 6 percent of positive returns.
PG Electroplast Limited provides Electronic Manufacturing Services (EMS) and contract manufacturing to the leading consumer durable and electronics brands in India.
The company has one of the biggest capacities in Plastic Injection moulding and has capabilities across the value chain in Original Equipment Manufacturing (OEM) and Original Design Manufacturing (ODM) products like Washing Machines, Room ACs, Air-Coolers and LED TVs.
Written by Shivani Singh
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