PG Electroplast hits new high

PG Electroplast is currently the top gainer on the BSE, opening 4.5% higher at Rs.652.95 and going on to hit a new 52-week high at Rs.718.35, up 15%.

The stock price soared after it said that its wholly owned subsidiary, PG Technoplast has signed an agreement with Spiro Mobility for manufacturing of the EVs of Spiro Mobility (Spiro) in India. Spiro is Africa’s largest EV player. No financial details have been given.

PG Technoplast will be setting up and managing the manufacturing facilities for electric vehicle, lithium-ion batteries and related components and for procurement of parts and raw materials for the same as specified by Spiro. And Spiro, on the other hand, will be responsible for R&D and the entire marketing gamut.

The company, for Q2FY25, posted an operating revenue of Rs.670 crore, up 46% (YoY), with the product business contributing a 54% share in the operating revenue. EBITDA also increased by around 55% and stood at Rs.60.5 crore and net profits rose by 57% to stand at Rs.19.5 crore.

For FY25, its revised operating revenue guidance is at least Rs.4250 crore in PG Electroplast and another Rs.600 crore in our JV company, Goodworth Electronics implying Rs.4850 crore of operating revenue as a growth, which is a growth of around 77% growth on FY24 numbers. It also revised its guidance for net profit to at least Rs.250 crore which is a growth of around 83% over FY24 net profit of Rs.137 crore. The growth in product businesses that is washing machine, room air conditioners and air coolers is expected to be around 78% from Rs.1668 crore to around Rs.2,975 crore. CAPEX guidance stands at around Rs.370 to Rs.380 crore and the progress on all infra and capacity expansion is progressing as planned. The company is on track to meet the capacity expansion guidance for the current year.