🧾 At a glance

PG Electroplast Ltd (PGEL) has gone from a niche plastic moulder to one of India’s most aggressive ODM/OEM growth stories. In just 5 years, revenue is up 7x (₹703 Cr → ₹4,870 Cr), net profit is up 24x (₹12 Cr → ₹288 Cr), and their stock has returned 182% CAGR over 5 years. You were busy watching Dixon; PGEL was busy becoming Dixon.

FY25 Revenue near ₹5,000 Cr. Profit up 24x. And still nobody knows who they are.

🏭 About PG Electroplast

• 🏢 Founded: 2003 (but group roots go back to 1977)
• 🔧 Core biz: OEM + ODM + plastic injection moulding
• 📺 Products: Air conditioners, LED TVs, washing machines, air coolers, set-top boxes, plastic parts for electronics
• 🛠 Subsidiary: PG Technoplast Pvt Ltd – key for consumer durables (ACs etc.)
• 🤝 JV: Tied up with Goodworth Electronics in FY24 to enter TV manufacturing in a bigger way

In short, they’re making all the gadgets your mom thinks are “Made in Samsung.”

👨‍💼 Key Managerial Personnel (KMP)

Family-run, but professionally evolving. PGEL is turning into a polished electronics ecosystem play.

📊 Financial Recap: FY21 to FY25

📈 Fair Value Estimate: ₹620–₹700

• FY26E EPS: ₹12–₹14
• Sectoral P/E: ~50–60x
• Fair valuation range = ₹620–₹700
• 📉 CMP = ₹769 → Already pricing in aggressive FY26–27 growth

Margin of safety? Not quite. Growth visibility? Solid.

🌱 Growth Outlook

What’s fueling this rampage?

• 📦 Huge demand for Indian EMS (Electronics Mfg Services)
• 🧩 Backward integration: From plastic to PCB to full assembly
• 🇮🇳 PLI Schemes: Massive beneficiary
• 🤝 JV with Goodworth = expanding TV play
• 🔋 New segments like EV plastic housing, LED lighting accessories

They’re basically doing everything Dixon does, but without the TEDx talks.

🔍 Segment Insights

• Air conditioners & components – Fastest growing
• TVs & LED – Revamped via JV
• Washing Machines & Air Coolers – Niche but profitable
• Plastic Injection Moulding – Old school strength

⚠️ Still largely B2B → dependent on consumer brands doing well (LG, Godrej, Haier, Lloyd, etc.)

💰 Balance Sheet & Working Capital

• ✅ Debt has come down: From ₹577 Cr (FY23) to ₹384 Cr (FY25)
• ✅ Reserves zoomed: From ₹173 Cr (FY21) to ₹2,800 Cr (FY25)
• ⛔️ Working Capital Days ~70 (little stretched)
• ⚙️ Capex-intensive: ₹1,200 Cr+ invested in 2 years

They’re spending like Ambani, but sweating like a startup. Respect.

📉 Cash Flow Check

Net cash burn in FY25 ≈ 🔥 ₹1,200 Cr in plant, capacity, and scaling. But clearly, investors are funding this party.

🤝 Shareholding Trends

FII + DII entry = validation. But the promoter dilution rate deserves a raised eyebrow.

💬 EduInvesting Take

“PG Electroplast didn’t just play catch-up — it made Dixon look over its shoulder.”

• 🔥 FY25 profit = ₹288 Cr → up 24x from FY21
• 📈 5-year stock CAGR = 182% – that’s not a stock, that’s crypto in formalwear
• 🔋 Debt-controlled growth with positive ROCE/ROE = rare combo
• ❌ But promoter holding erosion + valuation froth = slow down, cowboy!

Verdict: PGEL is now a serious EMS player. But at 75x P/E, it better keep the 100% growth coming.

⚠️ Risks & Red Flags

• ❌ Stock P/E = 75.7 – already priced for FY27
• ❌ Working capital heavy business → cash can vanish in cycles
• ❌ Promoter holding ↓ 16.3% in 3 years
• ❌ Thin dividend (0.03%) – basically just a formality

If this growth machine stumbles, it’ll be a long fall from ₹1,000 dreams.

📈 Stock Performance

They say lightning doesn’t strike twice. PGEL’s chart disagrees.

🏷️ Tags

PG Electroplast, PGEL stock analysis, EMS India, OEM ODM stocks, PG Technoplast, PG Electroplast FY25 results, EduInvesting stock recap, Dixon rival, Make in India electronics, 5-year stock growth

✍️ Author: Prashant Marathe

📅 Date: 10 June 2025