PG Electroplast shares surge 3% as arm inks Rs 1,000 crore deal with Maharashtra govt

PG Electroplast plans Rs 1,000 crore consumer electronics facility in Maharashtra

Shares of PG Electroplast surged 3 percent to Rs 551 per share on September 1 after its subsidiary, Next Generation Manufacturers, entered into a Memorandum of Understanding (MoU) with the Government of Maharashtra.

The agreement entails setting up a Rs 1,000 crore greenfield consumer electronics facility at Kamargaon in Ahilyanagar.

This upcoming project is part of the state’s Magnetic Maharashtra initiative and aims to develop integrated manufacturing capacities for air conditioners, washing machines, refrigerators, and related products.

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The facility is expected to generate over 5,000 direct and indirect employment opportunities, strengthening the consumer electronics ecosystem in western India.

The MoU was formalised in Mumbai in the presence of Maharashtra Chief Minister Devendra Fadnavis and Industries Minister Uday Samant. PG Electroplast stated that the plant will be highly vertically integrated and help strengthen the local components ecosystem.

However, the stock had been under pressure over the last month, falling nearly 30 percent compared to a 0.2 percent decline in the benchmark Nifty 50 index.

This was triggered after the company revised its full-year revenue guidance downward. PG Electroplast now expects net profit for the year to be between Rs 300 crore and Rs 310 crore, reflecting a growth of 3 percent to 7 percent over the previous year. Earlier, during the March quarter, the company had projected net profit of around Rs 405 crore.

The company also trimmed its product business growth expectations to 17 percent–21 percent, estimating revenue in the range of Rs 4,140 crore to Rs 4,280 crore, down from the earlier forecast of Rs 4,770 crore.

Consequently, the total group revenue guidance has been lowered to between Rs 6,550 crore and Rs 6,650 crore, compared to the previous estimate of Rs 7,200 crore.

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