PG Electroplast Limited (PGEL) shares plunged 10% today, hitting the lower circuit, after the company drastically cut its FY26 growth guidance. The sell-off comes on the back of a sharp 35% rally in the stock price over the last two trading sessions.

The flagship company of PG Group, PGEL is a leading and diversified Indian Electronic Manufacturing Service provider, specializing in Original Design Manufacturing (ODM), Original Equipment Manufacturing (OEM) and Plastic Injection Molding. Established in 2003, the company caters to over 50 leading Indian and global brands.

Guidance Cuts
The company has significantly revised its growth outlook for FY26:

• Revenue growth guidance reduced to 17–19% from 30.3% earlier

• Group revenue growth guidance cut to 21–23% from 33% earlier

• PAT growth guidance slashed to 3–7% from 39.2% earlier

• Product business revenue growth guidance lowered to 17–21% from 35% earlier

Business Segments

1. Products (61% of FY24 revenue vs 44% in FY25)

   • Room Air Conditioners (RAC): Second-largest player in RAC finished goods sales to OEMs and brands, servicing over 30 leading brands for its ODM models in FY24. Segment revenue grew over 340% between FY22 and FY24 due to new launches and capacity additions.

   • Washing Machines: India’s second-largest ODM player, offering semi-automatic and fully automatic washing machines. Serviced 25 leading brands in FY24, with 20% revenue growth in FY24 and 56% in FY23.

   • Air Coolers: Offers window, desert, and personal air coolers. Business remained flat in FY24 due to unseasonal rains.

2. Plastic Moulding (25% of FY24 revenue vs 49% in FY22)
   Largest manufacturer of plastic moulding for consumer durables and electronics in India, providing high-precision injection moulded components. Segment revenue rose 27% between FY22 and FY24, driven by growth in sanitaryware and fans segment.

3. Electronics (13% of FY24 revenue vs 6% in FY22)
   Provides PCB assembly for various applications. Segment revenue grew over 430% between FY22 and FY24, but TV business (82% of segment revenue in FY24) has been moved to a JV, likely reducing revenue from FY25.

4. Tool Manufacturing (1%)
   Supplies custom tooling solutions for specialty plastic moulding businesses.

Clientele
Major clients include LG Electronics, Carrier, Jaguar, Kohler, Whirlpool, Godrej, AO Smith, Acer, Voltas, Orient Electric, Blue Star, Croma, and Crompton.

Manufacturing Facilities
PGEL operates 11 manufacturing units in Greater Noida (UP), Roorkee (Uttarakhand), Bhiwadi (Rajasthan), and Ahmednagar (Maharashtra).

Shareholding Pattern – June 2025

• Promoters: 43.72%

• FIIs: 13.02%

• DIIs: 18.09%

• Public: 25.11%

• Others: 0.06%

• Total Shareholders: 21,83,84

With the sharp guidance cut and concerns over slowing growth, investor sentiment turned negative despite the stock’s recent rally. Market participants will be watching the company’s next quarterly results closely to see if management can stabilize performance and restore confidence.

Disclaimer:
This article is for informational purposes only and is not intended as investment advice. Stock market investments are subject to market risks. Readers should conduct their own research or consult a qualified financial advisor before making any investment decisions. The author and publisher are not responsible for any losses incurred from actions taken based on the information provided.