PGEL - Investment Analysis

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

Investment Rating: 4.4

📊 PG Electroplast Ltd (PGEL) — Long-Term Investment Analysis

✅ Strengths

PEG Ratio (0.80): Indicates undervaluation relative to earnings growth — a rare find in high-growth stocks.

ROCE (19.4%) & ROE (14.9%): Strong capital efficiency, especially for a mid-cap EMS player.

Debt-to-Equity (0.14): Low leverage, financially sound.

Quarterly PAT Growth (109%): Explosive profit momentum.

FII/DII Holding Increase: Institutional confidence is rising.

⚠️ Weaknesses

High P/E (79.4): Valuation is stretched compared to industry average (35.6).

Dividend Yield (0.02%): Not suitable for income investors.

Promoter Holding Decline: Slight reduction in promoter stake may raise eyebrows.

📈 Ideal Entry Price Zone

Current Price: ₹807

52-Week Range: ₹404 – ₹1,055

Suggested Entry Zone: ₹720 – ₹780

This range aligns with technical support and offers a better margin of safety.

RSI at 56 and MACD positive suggest mild bullish momentum, but not overheated.

🧭 Long-Term Investment Outlook

PGEL is a strong long-term candidate due to

Strategic expansion in ODM/OEM for consumer durables

Partnerships with brands like Whirlpool

Participation in PLI schemes

Revenue CAGR of 57% and PAT CAGR of 125% (FY21–FY24)

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Price Targets (Based on Forecast Models)

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Year Target Range (₹)

2025 ₹913 – ₹1,584

2026 ₹1,651 – ₹2,745

2027 ₹2,862 – ₹4,758

2030 ₹14,901 – ₹24,770

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🛣️ Exit Strategy (If Already Holding)

If Bought Above ₹950

Exit near ₹1,200–₹1,300 on rallies.

Reinvest in undervalued mid-caps or high-dividend plays.

If Bought Below ₹700

Hold for 3–5 years, targeting ₹2,500–₹4,000.

Consider partial profit booking near ₹1,600–₹1,800.

Monitoring Metrics

ROE/ROCE trend (target >18%)

PEG ratio stability (<1.5 is ideal)

Quarterly PAT consistency

Promoter stake movement

Would you like a comparison with peers like Dixon Technologies or Amber Enterprises to benchmark PGEL’s growth trajectory and valuation?

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www.fundsindia.com

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dailybulls.in

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