⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
PGEL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.8
| Stock Code | PGEL | Market Cap | 15,330 Cr. | Current Price | 537 ₹ | High / Low | 1,008 ₹ |
| Stock P/E | 123 | Book Value | 91.5 ₹ | Dividend Yield | 0.05 % | ROCE | 6.83 % |
| ROE | 4.87 % | Face Value | 1.00 ₹ | DMA 50 | 575 ₹ | DMA 200 | 611 ₹ |
| Chg in FII Hold | -0.86 % | Chg in DII Hold | 3.83 % | PAT Qtr | 31.6 Cr. | PAT Prev Qtr | 38.7 Cr. |
| RSI | 42.2 | MACD | -19.5 | Volume | 31,15,454 | Avg Vol 1Wk | 58,34,249 |
| Low price | 465 ₹ | High price | 1,008 ₹ | PEG Ratio | 3.31 | Debt to equity | 0.02 |
| 52w Index | 13.2 % | Qtr Profit Var | 31.7 % | EPS | 4.40 ₹ | Industry PE | 36.0 |
📊 Financial Overview
- Revenue & Profitability: Quarterly PAT declined to ₹31.6 Cr. from ₹38.7 Cr. (-31.7%). ROE (4.87%) and ROCE (6.83%) are weak, reflecting poor efficiency and margin pressure.
- Debt & Liquidity: Debt-to-equity at 0.02 indicates negligible leverage, ensuring balance sheet stability despite weak profitability.
- Valuation: P/E of 123 is extremely high compared to industry average (36.0), suggesting severe overvaluation. P/B ~5.9 indicates premium pricing. PEG ratio (3.31) highlights expensive growth expectations.
- Technical Indicators: RSI at 42.2 shows weak momentum; MACD at -19.5 indicates bearish trend. Current price ₹537 is below DMA 50 (₹575) and DMA 200 (₹611), signaling weakness.
🏢 Business Model & Competitive Advantage
- PG Electroplast (PGEL) operates in consumer electronics and plastic components manufacturing, serving OEMs in appliances and electronics.
- Competitive advantage lies in diversified product offerings and OEM partnerships, but profitability remains under strain.
💡 Entry Zone Recommendation
- Entry zone: ₹465–₹520, near recent lows.
- High risk due to overvaluation and weak returns; accumulation should be cautious and only for speculative investors.
📈 Long-Term Holding Guidance
- Not suitable for conservative long-term holding until margins improve and valuation normalizes.
- Upside potential only if demand stabilizes and profitability strengthens.
✅ Positive
- Low debt-to-equity ratio (0.02).
- DII holdings increased (+3.83%).
- Large market cap of ₹15,330 Cr. provides stability.
⚠️ Limitation
- High P/E (123) compared to industry average (36.0).
- Weak ROE (4.87%) and ROCE (6.83%).
- Dividend yield negligible at 0.05%.
📉 Company Negative News
- Quarterly PAT declined from ₹38.7 Cr. to ₹31.6 Cr.
- Bearish technical indicators (MACD negative, price below DMA).
- FII holdings reduced (-0.86%).
📈 Company Positive News
- DII holdings increased (+3.83%).
- Strong trading volume indicates investor interest.
- 52-week index gain of 13.2% shows resilience despite weak fundamentals.
🏭 Industry
- Consumer electronics industry P/E at 36.0, much lower than PGEL’s valuation.
- Sector growth driven by rising demand for appliances and OEM outsourcing.
🔎 Conclusion
- PGEL shows stability in balance sheet but weak profitability and extreme overvaluation.
- Entry only near ₹465–₹520 for speculative investors; long-term holding not recommended until earnings improve and valuation moderates.