PG Electroplast Q1 Results Review - Superlative Quarter; FY25 Guidance Revised Upwards: Systematix

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Research Report.PG Electroplast Ltd.’s strong Q1 (revenue/Ebitda/profit after tax up 95%/99%/151% YoY; 9.9% Ebitda margin) was driven by Product segment (revenue up 125% YoY driven by 130% YoY surge in room AC following harsh summer season; 75% mix). After strong Q1, management has revised upward its FY25 guidance (revenue up 33% YoY at Rs 36.5 billion, group revenue up 55% at Rs 42.5 billion including Rs 6 billion revenue from Jaina joint venture, Product revenue up 59% YoY at Rs 26.5 billion; PAT excluding JV share up 58% at Rs 2.16 billion). Order book is standing strong; a Rs 3.8 billion capex will be on 2 greenfield plants in Rajasthan and Noida, and expansion at Supa. On management’s upward revised guidance, we raise our revenue/PAT estimates by 11%/9% and 11%/8% for FY25 and FY26, respectively. We now expect 26%/26%/41% CAGR in revenue/Ebitda /PAT over FY24-26E with an improved return on invested capital of 22% in FY26E and further scope of improvement. While we remain positive on PG Electroplast’s prospect, after two times return in the scrip in last two months and currently at 40 times FY26E P/E, we maintain Hold with a higher target price of Rs 462 (45 times FY26E P/E; earlier Rs 381 at 40 times). Seasonal nature of RAC business poses risk on our high growth expectation..Click on the attachment to read the full report:.Ramco Systems Q1 Review - Mixed Results; Healthy Order Book, Expanding Footprint: Dolat Capital.DISCLAIMERThis 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.

PG Electroplast Q1 Results Review - Superlative Quarter; FY25 Guidance Revised Upwards: Systematix

While we remain positive on PG Electroplast's prospect, after two times return in the scrip in last two months and currently at 40x FY26E P/E, we maintain Hold with a higher target price of Rs 462.

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PG Electroplast Q1 Results Review - Superlative Quarter; FY25 Guidance Revised Upwards: Systematix

While we remain positive on PG Electroplast's prospect, after two times return in the scrip in last two months and currently at 40x FY26E P/E, we maintain Hold with a higher target price of Rs 462.

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