On the basis of lower room climate growth and margin assumptions, as well as higher interest costs for the current fiscal year, Nuvama has also reduced PG Electroplast’s earnings per share (EPS) estimates for the fiscal year 2026 by 35%, for the fiscal year 2027 by 25%, and for the fiscal year 2028 by 10%, respectively.
PG Electroplast Sees ₹526 Crore Block Deal; Stock Bounces Back from Day’s Lows
On Monday, August 11, PG Electroplast’s stock fell as high as 18%, continuing the company’s losses from Friday’s 23% decline, the most on record. Following its June quarter results and a drastic reduction in its full-year expectations, the shares dropped last Friday.
As a result of this decline, the stock has now cut in half so far this year.
Up to 1.04 crore shares, or 3.7% of PG Electroplast’s total outstanding stock, were exchanged in several block trades just moments ago. The average price at which shares were sold was ₹500, making ₹526 crore the total transaction value.
However, brokerage Nuvama has stuck to its “buy” rating for the company. Nuvama has, however, cut its price estimate for the stock by 35%, from ₹1,100 to ₹710. The updated price objective suggests a possible 25% increase over Friday’s closing prices.
On the basis of lower room air conditioning growth and margin assumptions, as well as higher interest costs for the current fiscal year, the brokerage has also reduced PG Electroplast’s earnings per share (EPS) estimates for the fiscal year 2026 by 35%, for the fiscal year 2027 by 25%, and for the fiscal year 2028 by 10%, respectively.
As opposed to the 30.3% growth previously anticipated, PG Electroplast now anticipates revenue growth of 17% to 19% for the entire year. Additionally, the group revenue projection was changed from 33% to 21% and 23%. Previously, the projection for net profit growth was reduced from 39.2% to 3% and 7%, and the guidance for product business revenue growth was reduced from 35% to 17%.
During its results call, the management stated that it is still optimistic about the long-term development prospects, but it reduced its full-year capital expenditure forecast from ₹800 crore to ₹900 crore to between ₹700 crore and ₹750 crore.
Because of its strategic transformation from a conventional plastic molding company to a major OEM/ODM solutions supplier for consumer durables firms in India, Nuvama thinks PG Electroplast is an attractive investment opportunity.
Among the major dangers mentioned by Nuvama are supply chain interruption and competitive intensity.
Seven of the eleven analysts covering PG Electroplast have a “buy” rating, three a “hold” rating, and one a “sell” recommendation.
At ₹505, PG Electroplast’s shares are now down 14%. After the business lowered its full-year guidance last Friday, the stock fell 23%, the worst single-day loss ever. Only a few months had passed after the promoters’ May block deal share sales when the crash occurred. Last December, the business also raised money through QIP.
Originally published at 7:45 AM IST on August 11, 2025.
