PG Electroplast zooms 90% in 16 trading days, hits over two-year high

Shares of PG Electroplast were locked in upper circuit for the twelfth straight trading day, up 5 per cent at Rs 257.40 on the BSE on Wednesday in an otherwise range-bound market. In the past 16 trading sessions, the stock of the consumer electronics company has rallied 90 per cent from the level of Rs 135.15 on January 18. It was trading at its highest level since June 2018. The stock soared 882 per cent from its 52-week low of Rs 26.20, hit on March 31, 2020.

Till 12:10 pm, a combined around 120,000 equity shares had changed hands and there were pending buy orders for 34,000 equity shares on the NSE and BSE. In comparison, the S&P BSE Sensex was down 0.22 per cent at 51,216 points.

PG Electroplast is a partner for electronic manufacturing services and plastic moulding for leading consumer durable and automotive plastic companies in India. The company has one of the biggest capacities in the plastic injection molding and has capabilities across the value chain in the electronic manufacturing services (EMS).

For the October-December quarter (Q3FY21), the company had posted its highest quarterly sales, EBITDA (earnings before interest, taxes, depreciation, and amortisation) and net profit on back of strong demand environment from all its customers. A strong demand rebound along with Government policies on ‘Atma Nirbhar Bharat’ are encouraging local manufacturing in India, the company said.

The company reported EBITDA of Rs 15.9 crore- a growth of 108 per cent year on year (YoY) due to improved margins driven by better revenue mix and cost control. Net revenues during the quarter increased 31 per cent YoY at Rs 184.60 crore, while net profit jumped an over 10-fold at Rs 6.5 crore from Rs 0.61 crore in a year ago quarter.

The management has revived and expanded its capex plans and is planning significant capacity additions along with new product development in the coming time in all of the company’s focus areas of business. The management sees increased opportunities in the existing and new clients and based on the current business environment. With new capacities and capabilities, company is uniquely positioned in the consumer durables & automotive plastics space in India, it said.

In the coming quarters, the company aspires to have industry leading growth in revenues, gradual improvement in margins due to operational efficiencies and operating leverage and better capital efficiency resulting from improved cash flows and balance sheet optimization.