PGEL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.8
| Stock Code | PGEL | Market Cap | 13,331 Cr. | Current Price | 467 ₹ | High / Low | 836 ₹ |
| Stock P/E | 107 | Book Value | 91.5 ₹ | Dividend Yield | 0.05 % | ROCE | 6.83 % |
| ROE | 4.87 % | Face Value | 1.00 ₹ | DMA 50 | 520 ₹ | DMA 200 | 576 ₹ |
| Chg in FII Hold | -0.84 % | Chg in DII Hold | 1.83 % | PAT Qtr | 31.6 Cr. | PAT Prev Qtr | 38.7 Cr. |
| RSI | 34.9 | MACD | -18.3 | Volume | 25,70,700 | Avg Vol 1Wk | 31,72,781 |
| Low price | 437 ₹ | High price | 836 ₹ | PEG Ratio | 2.88 | Debt to equity | 0.02 |
| 52w Index | 7.61 % | Qtr Profit Var | 31.7 % | EPS | 4.40 ₹ | Industry PE | 36.3 |
📊 Financial Overview: PGEL has a market cap of ₹13,331 Cr with a current price of ₹467. The 52-week range is ₹836–437. Profitability is weak with ROE at 4.87% and ROCE at 6.83%. Debt-to-equity ratio of 0.02 indicates negligible leverage. PAT declined to ₹31.6 Cr from ₹38.7 Cr, showing pressure on earnings. EPS is ₹4.40, reflecting modest earnings capacity.
💰 Valuation Indicators: Stock P/E is 107, far above the industry average of 36.3, suggesting significant overvaluation. Book value is ₹91.5, giving a P/B ratio of ~5.1. PEG ratio of 2.88 indicates stretched valuation relative to growth. Dividend yield is negligible at 0.05%. Intrinsic value appears lower than current price, limiting margin of safety.
🏭 Business Model & Competitive Advantage: PGEL operates in consumer electronics and appliances manufacturing. Its competitive advantage lies in brand presence and product diversification. However, weak profitability, high valuation, and declining margins limit overall health compared to peers.
📈 Entry Zone & Long-Term Guidance: The stock looks overvalued at current levels. A better entry zone would be ₹420–450, closer to support levels. Long-term holding depends on margin improvement and earnings growth; currently, fundamentals suggest cautious monitoring.
Positive
- 📊 [Low Debt](ca://s?q=PGEL_debt_to_equity): Debt-to-equity ratio of 0.02 shows strong balance sheet.
- 📈 [DII Support](ca://s?q=PGEL_DII_holdings): DII holdings increased by +1.83%.
- 🏭 [Industry Presence](ca://s?q=PGEL_consumer_electronics_market): Established presence in consumer electronics and appliances.
Limitation
- ⚖️ [High Valuation](ca://s?q=PGEL_PE_ratio): P/E of 107 compared to industry average of 36.3.
- 📉 [Weak Returns](ca://s?q=PGEL_ROE_ROCE): ROE at 4.87% and ROCE at 6.83% are below industry standards.
- 💸 [Low Dividend Yield](ca://s?q=PGEL_dividend_policy): Dividend yield of 0.05% offers minimal returns.
Company Negative News
- 📉 [Profit Decline](ca://s?q=PGEL_quarterly_profit): PAT fell from ₹38.7 Cr to ₹31.6 Cr QoQ.
- 📊 [FII Exit](ca://s?q=PGEL_FII_holdings): FII holdings decreased by -0.84%.
Company Positive News
- 📈 [Quarterly Profit Growth](ca://s?q=PGEL_profit_variation): Profit variation shows 31.7% growth YoY despite QoQ decline.
- 📊 [Technical Support](ca://s?q=PGEL_DMA_levels): Current price near DMA 50 (₹520) and DMA 200 (₹576) indicates technical support levels.
Industry
- 🏭 [Consumer Electronics Sector](ca://s?q=India_consumer_electronics_industry): Industry PE at 36.3, showing moderate valuation compared to PGEL.
- 📊 [Growth Drivers](ca://s?q=India_appliance_market_growth): Rising demand for appliances and electronics supports sector expansion.
Conclusion
⚖️ PGEL’s fundamentals are weak with high valuation, low profitability, and declining earnings. While debt-free status and industry presence are positives, poor return ratios and negligible dividends limit attractiveness. Entry is advisable only near ₹420–450 for better risk-reward. Long-term holding depends on margin improvement and earnings growth; currently, cautious monitoring is recommended.