PGEL - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

📊 Fundamental Stock Analysis: PG Electroplast Ltd (PGEL) Rating: 4.1

🧾 Core Financial Evaluation

Profitability

ROE of 14.9% and ROCE of 19.4% indicate healthy but not elite-level capital efficiency.

EPS of ₹10.2 is modest relative to high valuation, but Qtr Profit Var of 109% reflects strong growth momentum.

Debt & Capital Structure

Debt-to-Equity at 0.14 — low leverage and stable balance sheet.

Dividend Yield near zero (0.02%) — growth-focused with minimal income return for shareholders.

Earnings Power

PAT jump to ₹145 Cr from ₹39.5 Cr in one quarter is remarkable — shows an aggressive uptick, possibly due to cyclical demand or operating leverage playing out.

💰 Valuation & Market Metrics

Metric Value Commentary

P/E Ratio 79.4 Highly stretched valuation vs. industry PE (35.6)

PEG Ratio 0.80 Indicates fair valuation given strong growth

P/B Ratio ~8.1 Premium valuation over book value

Price Action ₹807 Slightly above DMA 50 (₹790) and DMA 200 (₹748) → shows medium-term bullish support

RSI & MACD RSI 56.0, MACD 8.58 Mild bullish momentum confirmed

🧠 Business Model & Strategic Positioning

Overview: PGEL is a leading player in electronic manufacturing services (EMS), producing consumer electronics, plastic components, and appliances — sectors aligned with India’s manufacturing push.

Moat & Advantage

Benefiting from government-led initiatives like "Make in India" and PLI schemes.

Backward integration, expanding capacity, and improving operating leverage enhance scalability and margins.

FII (+2.57%) and DII (+1.72%) interest shows strengthening institutional confidence.

📌 Investment Strategy

Entry Zone Recommendation: Ideal accumulation zone: ₹740–₹780 range. Offers proximity to long-term support levels and better margin of safety.

Long-Term Guidance

Suitable for growth-oriented investors.

Watch for consistent PAT performance, margin expansion, and valuation cooling over time.

Keep tabs on any supply chain disruptions or competitive headwinds in EMS space.

If you’d like a side-by-side with another EMS or consumer electronics manufacturer like Dixon Tech, or a chart showing valuation compression vs. earnings expansion, I’m game to dig in. Just say the word.

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