EduInvesting.in | May 12, 2025

While the market was busy crying over interest rates and watching Paytm drama unfold, PG Electroplast Ltd. just dropped a quarterly bombshell so hot, it could melt copper wires.

The result? A 5x jump in quarterly profits, operating leverage firing on all cylinders, and a performance that says: “Yes boss, we’re built different.”

🔌 PG Electroplast Q4 FY25: High Voltage Zone

This ain’t just a “good quarter.” This is an electrocution of expectations.

⚙️ What Does PG Electroplast Do Again?

For those late to the circuit, PG Electroplast is a leading electronics manufacturing services (EMS) company. They make:

• Plastic components
• Air conditioners (white goods OEM)
• LED TVs & consumer appliances

They’re basically the silent arm behind your noisy gadgets.

So when demand surges and companies outsource manufacturing, PGEL laughs its way to the bank.

🧮 Let’s Talk Valuation

• EPS this quarter alone: ₹5.32
• TTM EPS (estimated): ~₹13+
• CMP: (You check, but let’s assume around ₹240–260)

At ₹250, the P/E is around 19, but with 100%+ YoY growth, this may still be cheap for its momentum.

Fair value at P/E 25 = ₹325
At P/E 30 = ₹390
At P/E 35 = ₹455

🧠 EduInvestor’s Analysis: Why This Is Not Just Hype

✅ 77% YoY revenue growth
✅ 105% PAT growth — margins are back, baby
✅ Zero signs of slowdown — management said “hold my PCB”
✅ Non-controlling interest: negligible. The profits are all ours 😎

And unlike many penny-packers, this one actually makes real products and real profits.

⚠️ Any Risks?

Sure — no stock is risk-free, even if it makes fridges:

⚠️ OEM contracts are high volume, low margin — any loss of volume = trouble
⚠️ Heavy dependency on consumer electronics — if demand crashes, so does the stock
⚠️ High raw material costs (plastic, chips) can squeeze margins

📈 Verdict: The Chart May Zigzag, But The Fundamentals Slap

“PGEL didn’t just beat expectations — it nuked them. With triple-digit profit growth, EPS boost, and visible scale-up, this smallcap is no longer a secret. It’s an operational beast in disguise.”

🔥 EduInvesting Rating: 4.6/5 Masala Stars 🌟🌟🌟🌟✨

🎯 Investor Cheat Sheet

• Buy Zone: ₹220–250
• Target (12–18 months): ₹380–450
• Stop Loss (Trend Reversal): Break below ₹200
• Holding Period: Long-term or until Apple calls them for contract manufacturing