PGEL - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 3.1

📊 Core Financials Analysis

Profitability

ROE: 4.87% and ROCE: 6.83% — weak return metrics, indicating inefficient capital deployment.

EPS: ₹3.52 — low earnings per share relative to price.

Quarterly PAT improved from ₹22.8 Cr to ₹31.8 Cr — a solid 73.2% jump, but still modest in absolute terms.

Balance Sheet & Cash Flow

Debt-to-equity: 0.02 — virtually debt-free, which is a major strength.

Dividend Yield: 0.04% — negligible, suggesting reinvestment focus.

Free cash generation remains a concern

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📉 Valuation Indicators

Metric Value Interpretation

P/E Ratio 164 Extremely high — implies overvaluation

P/B Ratio ~6.34 Elevated for a low-ROE business

PEG Ratio 4.44 Overvalued relative to growth

Intrinsic Value ₹503.09 Overvalued by ~12% vs current price

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🧠 Business Model & Competitive Edge

Company Profile: PG Electroplast Ltd (PGEL) is a leading Indian Electronic Manufacturing Services (EMS) provider

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Segments

ODM/OEM for consumer electronics.

Plastic injection molding.

Subsidiary manufactures air conditioners, coolers, and components.

Recent Developments

JV with Goodworth Electronics to expand TV and hardware business

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₹1,000 Cr MoU for a new facility in Maharashtra — potential long-term growth driver

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Moat: Brand partnerships and manufacturing scale, but low margins and weak profitability dilute competitive advantage.

📈 Technical & Sentiment Overview

RSI: 42.6 — mildly bearish.

MACD: -18.2 — negative momentum.

DMA 50 & 200: Price below both — downtrend confirmed.

Volume: Below average — waning interest.

💡 Entry Zone & Long-Term Guidance

Suggested Entry Range: ₹480–₹510 — closer to intrinsic value and technical support.

Holding Strategy

Suitable only for high-risk investors betting on EMS sector growth.

Wait for margin expansion and consistent profitability before accumulating.

Monitor execution of new JV and facility capex.

PGEL is a growth story with operational leverage potential, but current valuations are stretched and fundamentals are soft. If you’re patient and bullish on India’s electronics manufacturing boom, it may be worth tracking. Want to compare it with Dixon or Amber Enterprises next?

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