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.
The company expects its consolidated revenue in FY26 to grow 17%-19% to ₹5,700 crore – ₹5,800 crore, compared with its earlier guidance of 30.3% growth to ₹6,345 crore.
FY26 net profit guidance has also been revised sharply lower, with the company projecting a 3%-7% YoY increase to ₹300 – ₹310 crore, compared with the earlier estimate of 30.3% growth to ₹405 crore from ₹290.9 crore in FY25.
Revenue from the product business is now expected to grow 17%-21% to ₹4,140 – ₹4,280 crore, versus the earlier projection of 35% growth to ₹4,770 crore. Revenue from the electronics business is forecast to rise 29% YoY to ₹450 crore, compared with the previous estimate of 43.4% growth to ₹500 crore.
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 Block Deal
PG Electroplast shares also reportedly saw a block deal in the early hours of Monday. According to CNBC-TV18, around 79 lakh PG Electroplast shares, or 2.82% of equity, worth ₹406 crore changed hands at an average price of ₹501 per share via block deals.
PG Electroplast block deal price was 15% lower than Friday’s closing price.
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.