PG Electroplast share price crashed 15% in early trade on Monday, extending its slide to the fourth consecutive trading session. PG Electroplast shares fell as much as 15% to hit the lower circuit of ₹500.70 apiece on the BSE.
Over the past four trading sessions, PG Electroplast share price has slumped 37%, and the stock is now down 50% from its 52-week high of ₹1,054.95 apiece, hit on January 06, 2025.
Why are PG Electroplast shares falling?
The steep fall in PGEL shares came after the electronic manufacturing services (EMS) company slashed its FY26 growth guidance.
PG Electroplast cut the PAT guidance by 23% YoY to ₹310 crore as it lowered products’ growth guidance to 18% (from 30% earlier) in the wake of cancellations (70% in June and July).
The company expects its consolidated revenue in FY26 to grow 17%-19%, while net profit to grow 3%-7% YoY. Product business revenue is estimated to grow between 17% to 21% to between ₹4,140 crore and ₹4,280 crore, as compared with its earlier guidance of ₹4,770 crore. Electronics revenue is expected to rise 29% YoY to ₹450 crore in FY26.
PG Electroplast reported a net profit of ₹67 crore in the first quarter of FY26, registering a fall of 21% from ₹85 crore in the year-ago period. The company’s revenue in Q1FY26 increased 14% YoY to ₹1,504 crore.
PG Electroplast is an Indian electronic manufacturing services (EMS) provider, specialising in Original Design Manufacturing (ODM) and Original Equipment Manufacturing (OEM) for consumer durable brands.
“The early arrival of the monsoon impacted seasonal sales for Room ACs, making Q1 a more subdued start to the year. However, underlying demand indicators remain robust, and we see significant long-term potential given the relatively low penetration levels in core categories like Room ACs and Washing Machines,” said Vishal Gupta, Managing Director – Finance, PG Electroplast.
“While near-term growth may moderate, our medium and long-term outlook remains strong. We are committed to building a resilient, high-performing organisation that delivers industry-leading capital efficiency and growth,” he added.
Nuvama cuts PG Electroplast’s share price target
Brokerage firm Nuvama Institutional Equities has cut PG Electroplast’s FY26E, FY27E and FY28E EPS (Earnings Per Share) estimates by 36%, 25% and 10%, respectively, as it lowers RAC growth and margin assumptions and also bakes in higher interest costs for FY26E.
Nuvama has a ‘Buy’ rating on PGEL shares, and slashed the target price to ₹710 apiece (45x June 2027E EPS) from ₹1,100 earlier, based on 55x Jun-27E EPS.
PG Electroplast share price has fallen 36% in one month, and has dropped 40% in six months. The stock has declined 32% on a year-to-date (YTD) basis, while it has risen 13% in one year. However, PG Electroplast shares have delivered multibagger returns of 200% in two years and a staggering 10,265% in five years.
At 9:40 AM, PG Electroplast share price was still locked at 15% lower circuit of ₹500.70 apiece on the BSE.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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