PG Electroplast - Room AC Outlook Remains Strong: Nirmal Bang

Nirmal Bang Report

We hosted the management of PG Electroplast Ltd. for our conference. Its commentary was bullish on the consumer durables space.

Growth rate for the room AC industry is expected to be ~20% value-wise in the medium to long term. Currently, channel inventory remains low.  Improved water supply – especially in semi-urban areas – is driving growth of SemiAutomatic Washing Machine segment in these regions.

PG Electroplast has recently received the Google ODM license. It is also in the process of developing its own ODM solutions, which is expected to be ready by H2 FY25, post which it will only buy key components from China (not the entire kit).

As per the management, PG Electroplast is currently the only player that manufactures 100-inch TV displays and it is gaining market share too.  Capex plan for FY25 stands at ~Rs 3.8 billion; this includes building and miscellaneous at ~Rs 1.84 billion, WM product development at ~Rs 0.4 billion, RAC at ~1.25bn, air coolers at ~Rs 30 million and the rest for tooling and sanitary businesses.

Click on the attachment to read the full report:

DISCLAIMER 

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.