The PG Group’s main company, PG Electroplast, saw its shares jump 5.50% to ₹1,002 in early morning trading on Tuesday, December 24 following the company’s partnership with Whirlpool.
Through a regulatory filing on Monday, the firm notified investors that it had finalized a contract with Whirlpool of India (“Whirlpool”) for the contract manufacturing of a few models of semi-automatic washing machines bearing the Whirlpool label.
As per this agreement, the business will use its Roorkee manufacturing to produce a portion of the SKUs for Whirlpool. According to the corporation, it now supplies air conditioners under the Whirlpool brand, and both businesses will keep an eye out for future growth prospects.
Following the announcement, Whirlpool India’s shares also increased by 3.55% to ₹1,915.80.
Commenting on the agreement, Narasimhan Eswar, Managing Director of Whirlpool of India, said, “We are excited to announce that Whirlpool has tied up with PG Electroplast to manufacture certain SKUs of its semi-automatic washing machines.”
“With Whirlpool’s exceptional designs and technology and PGEL’s manufacturing expertise, today’s announcement reaffirms our commitment to the Government’s ‘Make in India’ initiative and providing best-in-class products to our consumers at an affordable price point,” he added.
One of the top providers of varied Indian electronic manufacturing services, PG Electroplast provides contract manufacturing to top electronics and consumer durables businesses in India.
Based on the present business environment, the management of the company sees more prospects with both new and existing clients. The company is in a unique position in India’s consumer durables and plastics market because of its expanded capacity and competencies.
It hopes to attain industry-leading revenue growth in the upcoming years, a steady improvement in margins as a result of operational leverage and efficiencies, and best-in-class capital efficiency as a result of enhanced cash flows and balance sheet optimization.
As a result, the company updated its FY25 revenue projection to ₹4,250 crore, a 54.7% increase over FY2024 consolidated revenue. At ₹250 crore, the updated net profit projection represents an 82.5% increase above the ₹137.0 crore net profit for FY2024.
Equirus Securities, a domestic brokerage firm, has started covering the stock with a “buy” recommendation and a target price of ₹980 per share, among other encouraging developments. The company’s design and manufacturing of air conditioners, televisions, and washing machines have potential for expansion, according to the brokerage, which also emphasized the company’s capacity to swiftly expand into new markets.
PG Electroplast stock up 17,000% in 5 years
After a 10:1 stock split, the price of PG Electroplast shares has been trading on an ex-split basis since July 10. The shares have soared from ₹237 per to the current trading price of ₹977, representing a staggering 312% increase thus far this year.
The shares have risen from ₹5.69 a share to their current value over the past five years, representing an incredible 17,000% return.
