PG Electroplast - Robust Guidance Intact: 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.We hosted the management of PG Electroplast Ltd. at our investor conference. the management remained confident of achieving 50% YoY growth in FY24 in the room AC business on the back of new customers addition (20 from 14 in FY23) while the RAC outsourcing industry is likely to see flattish numbers due to greater in-house manufacturing by Lloyd and Voltas Ltd.Total revenue is expected to touch Rs 28 billion in FY24 (up 30% YoY), led by 43% rise in the product business (washing machine, RACs, Coolers; likely revenue of Rs 19.2 billion), which would contribute to 68% of revenue (44%/62% in FY22/FY23). It sees large opportunity in the consumer electronics vertical. A 50:50 joint venture with the Jaina Group will be to manufacture Google certified LED TVs. Its WC cycle is expected to improve (by 10-12 days) gradually with shift in sourcing from China to domestic vendors. While operating margins across segments may remain stable, a change in the mix could limit overall margins. A Rs 1.8 billion capex (funded via operating cash flows and recently concluded Rs 5 billion QIP) will be mainly on RACs (to double capacity) and backward integration. Capital allocation remains the key focus. We expect 29%/30%/ 35% compound annual growth rate in revenue/Ebitda/profit after tax over FY23-25E. The recent Rs 5 billion QIP will limit return on invested capital to ~17% in FY25E with scope of improvement. While the positive outlook is intact, we expect moderate return in its scrip at ~35 times FY25E price/earning. Maintain 'Hold' with Rs 2,342 target price (35 times FY25E P/E)..Click on the attachment to read the full report:.V-Mart - Winds Of Change: Motilal Oswal.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 - Robust Guidance Intact: Systematix

Capital allocation remains the key focus. We expect 29%/30%/ 35% compound annual growth rate in revenue/Ebitda/profit after tax over FY23-25E.

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PG Electroplast - Robust Guidance Intact: Systematix

Capital allocation remains the key focus. We expect 29%/30%/ 35% compound annual growth rate in revenue/Ebitda/profit after tax over FY23-25E.

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