The shares of leading electronics manufacturing services provider gained up to 5 percent after the company signed a definitive agreement with Whirlpool.
With a market capitalization of Rs 27,574.74 crore, the shares of PG Electroplast Limited were trading at Rs 975.05 per share, increasing around 2.22 percent as compared to the previous closing price of Rs 953.80 apiece.
Reason for rise:-
The shares of the company have seen bullish movement after PG Electroplast Limited has signed a Definitive Agreement for the contract production of various models of Whirlpool-branded semi-automatic washing machines. Under the agreement, PGEL will produce certain of Whirlpool’s SKUs at its facility in Roorkee.
Moreover, PGEL is already an existing supplier of Whirlpool branded Air Conditioners and both companies will continue to evaluate the potential expansion opportunities.
Mr. Vikas Gupta, Managing Director (Operations) of PG Electroplast Limited said, “We are pleased to deepen our relationship with Whirlpool. As a leading home appliance manufacturer in India, Whirlpool is renowned for their industry-leading products. With this association we aim to unlock new opportunities for growth and help Whirlpool deliver exceptional value to its customers while setting new benchmarks in efficiency.”
Looking into PG Electroplast Ltd, the company’s revenue increased by 45 percent, from Rs 460 crore in Q2FY24 to Rs 671 crore in Q2FY25. During the same period, 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.
Guidance:-
The company revised FY25 revenue guidance to ₹4,850 crore (77% YoY growth), including ₹600 crore from Goodworth Electronics. Net profit is projected at ₹250 crore (83% YoY growth). CAPEX is set at ₹370-380 crore, focusing on infrastructure and capacity expansion, with progress on track.
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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