PG Electroplast plummets 35% in 5 days amid weak revenue guidance

Mumbai: PG Electroplast, an electronic manufacturing service provider, has been caught in a downward spiral of late in Mumbai trading as weaker-than-expected revenue guidance and first-quarter earnings have taken the shine off this once-favourite stock.

The stock, owned by institutional investors, including the Government of Singapore, Norway's Sovereign Fund and Motilal Oswal Mutual Fund among others, plunged as much as 19% on Monday, before closing 12% lower at ₹514, taking its five-day loss tally to 35%.

Brokerage Nuvama slashed its target price to ₹710 from ₹1,100 while retaining its rating at buy, following the June quarter results. JM Financial too reduced its target price to ₹790 from ₹960.


"Given significant RAC ( room air conditioner) inventories, PGEL would witness a very weak Q2 and Q3 in our view," said analysts at Nuvama in a note.

On Friday, the stock slumped over 20% after the company's consolidated net profit in the June quarter shrank by 21% from the same period a year ago. Revenues grew nearly 14% in this period.

Analysts said the profit numbers were not enough to justify the rich valuations.

"PG Electroplast appears expensive relative to its fundamentals and is facing weak momentum," said Om Ghawalkar, market analyst, Share.Market. "High volatility and cautious sentiment suggest that investors remain wary in the near term."

Once an investor darling, the electronics manufacturer had soared over 500% from March 15 to the start of 2025, riding the bullish wave sparked by the China+1 shift, government PLI (Production Linked Incentive) scheme for the sector, and surging demand for electronics. In 2025, the stock is down nearly 50%.

JM Financial said the recent stock price drop may be pricing in "a large portion of the negatives". "With massive order cancellations resulting from the season failing to rebound, the cut in guidance was inevitable," said the brokerage.