Operating Leverage Inflection
Expected: OngoingHIGH confidence
What: Fixed asset turnover: Over 6x
“And typically, a lot of operating leverage also kicks in during this quarter. So we are hopeful that the trend will probably continue.”
PG Electroplast Ltd: Is It a Deep Value Opportunity?
AverageAccelerating
As of , PG Electroplast Ltd (Consumer Electronics - EMS) has a deep value score of 49/100 (rated Average). Earnings are accelerating. 1Y return vs Nifty 500: -42%.
PG Electroplast Ltd Key Facts
- PE Ratio
- 54.7x
- Market Cap
- ₹15,146 Cr
- Value Score
- 49/100
- Margin of Safety
- -3%
- PAT Growth YoY
- +55%
- Revenue Growth YoY
- +46%
- OPM
- 8.0%
PE: Near TroughStrong Opportunity
What's Happening
💎PE falling while earnings hold — value emerging
📊Debt increased 54% YoY — leverage rising
👔Promoter stake down 9.8% this quarter
🌐FII stake increased 0.8% this quarter
🏛️DII accumulation — stake up 9.0%
💰Trading 3% above estimated fair value
Earnings Acceleration Triggers
1. Operating Leverage Inflection
OngoingHIGH
2. New Product Or Brand Launch
Q4 FY27HIGH
3. Market Share Gains
9M FY26MEDIUM
Key Risks
1. Forex loss of INR 8
MEDIUM2. Sharp rise in copper and aluminum prices necessitating price hikes
MEDIUM3. Provision of INR 1
LOWSector-Specific Signals
RAC Business RevenueINR 932.5 Cr+80.5%
Washing Machine RevenueINR 194 Cr+45%
Total InventoryINR 1,280 Cr
Net Fixed Asset Turnover6x
Key Numbers
PAT Growth YoY
+55%
Stable
Revenue YoY
+46%
Stable
Operating Margin
8.0%
-100 bps YoY
PE Ratio
54.7
PEG Ratio
0.60
Current Price
₹530
Dividend Yield
0.05%
3Y PAT CAGR
+80%
Market Cap
15.1K Cr
Valuation
Fairly ValuedWhy Are PG Electroplast Ltd's Earnings Accelerating?
Based on Q3 FY26 earnings • Updated Apr 18, 2026
New Product Or Brand Launch
Expected: Q4 FY27HIGH confidence
What: Refrigerator capacity: 1.2 million units
“So Vishalji, we are putting up a capacity of 1.2 million refrigerators in our Sricity factory. So that should be up and running by the fourth quarter of FY '27.”
Market Share Gains
Expected: 9M FY26MEDIUM confidence
What: RAC growth vs industry: 27% vs -15% industry
“With this quarterly performance, we have been able to grow our RAC business by 27% in 9 months of FY '26 despite the industry posting an almost 15% to 20% decline.”
AC Business Growth of 80.5% YoY
HIGH confidence
What: AC Business Growth of 80.5% YoY
“The AC business contributed INR932.5 crores, which was a growth of 80.5% over the same period last year.”
What Are the Key Risks for PG Electroplast Ltd?
Earnings deceleration risks from management commentary
Forex loss of INR 8
MEDIUMTrigger: INR depreciation impacting import costs and outstanding payables.
Impact: PAT impact: INR 8.2 crores
Management view: Not explicitly detailed, but noted as a swing factor in other expenses.
Monitor: fx
Sharp rise in copper and aluminum prices necessitating price hikes
MEDIUMTrigger: Global commodity price movement impacting the Bill of Materials (BOM).
Management view: Passing on price increases to brands with a short lag.
Monitor: commodity
Provision of INR 1
LOWTrigger: Regulatory compliance with upcoming labor law changes.
Impact: PAT impact: INR 1.35 crores
Management view: One-time provision made in employee expenses.
Monitor: labor
What Is PG Electroplast Ltd's Management Saying?
Key quotes from recent conference calls
“we expect PGEL to be having revenues in the range of Rs. 5,700-Rs. 5,800 crores and net profit is expected to be between Rs. 300-Rs. 310 crores. [Previous Full Year Revenue guidance]”
“So Vishalji, we are putting up a capacity of 1.2 million refrigerators in our Sricity factory. So that should be up and running by the fourth quarter of FY '27. [Initiative: Refrigerator Entry]”
“Now in this EBITDA, we had a forex loss of INR8.2 crores versus the same quarter last year, a loss of INR1.4 crores. [Risk (fx): MEDIUM]”
“But price increase is surely likely to come, there is no choice because the kind of movement, which we have seen in the commodities, especially copper and aluminum. [Risk (commodity): MEDIUM]”
What Did PG Electroplast Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
INR 1,412 crores
YoY +46%QoQ +115.6%
Why: Growth was driven by a 80.5% increase in the AC business and a 45% increase in washing machine sales during the quarter.
Revenue saw a massive sequential jump as the AC business entered its peak manufacturing and channel-filling season.
EBITDA
INR 126 crores
Margin 8.9%
Why: Margins were impacted by a 120 basis point drop at the gross level due to pricing support for clients and a shift to SAP accounting.
EBITDA margins faced pressure from forex losses and strategic pricing compromises to gain market share in the RAC segment.
PAT
INR 60.3 crores
QoQ +2412.5%
Why: Profitability improved due to higher operating leverage in the peak quarter, despite a forex loss of INR 8.2 crores.
PAT recovered sharply from the low base of Q2 (INR 2.4 Cr) as seasonal volumes absorbed fixed costs.
Other Highlights
• AC business contributed INR 932.5 crores, representing 66% of total revenue.
• Washing machine business grew 45% YoY to INR 194 crores.
• Forex loss of INR 8.2 crores impacted the bottom line during the quarter.
What Sector Metrics Matter for PG Electroplast Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
RAC Business Revenue
INR 932.5 Cr
YoY +80.5%QoQ +611.8%
Why: Driven by peak seasonal manufacturing and channel filling for the summer season.
Washing Machine Revenue
INR 194 Cr
YoY +45%QoQ +3.2%
Why: Continued momentum in outsourcing and wallet share gains from existing clients.
Total Inventory
INR 1,280 Cr
Why: Primarily raw material inventory (INR 1,160 Cr) built up for peak Q4 production.
Net Fixed Asset Turnover
6x
QoQ +20%
Why: Improved asset utilization as new capacities ramped up during the peak quarter.
Monthly AC Capacity (Split)
4.25 Lakh units
YoY +21.4%QoQ +21.4%
Why: Expansion of lines in Supa and Bhiwadi to meet seasonal demand.
Annual Refrigerator Capacity
1.2 Million units
YoY New Category
Why: Strategic entry into a new product segment at the Sricity facility.
Cash and Equivalents
INR 483 Cr
QoQ -23.3%
Why: Utilization of cash for ongoing capex and working capital requirements.
Estimated Industry Inventory
5 Million units
QoQ +150%
Why: Slow secondary sales and channel filling leading to a pile-up in the system.
What Is PG Electroplast Ltd's Management Guidance?
Forward-looking targets from management for FY2026
Capex Plan
₹750 Cr
Revenue Outlook
INR 5,700-5,800 crores
Capex Plan
INR 700-750 crores
Refrigerator facility in Sricity, washing machine capacity in Greater Noida, and AC facilities in Supa/Bhiwadi.
Volume
AC volume growth
Management Tone: BULLISH
Guidance Changes
REAFFIRMED
Full Year Revenue: INR 5,700-5,800 crores → INR 5,700-5,800 crores
How Fast Is PG Electroplast Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +46% | +64% | Stable |
| PAT (Net Profit) | +55% | +80% | Stable |
| OPM | 8.0% | -100 bps | Contracting |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Other Deep Value Stocks in Consumer Electronics - EMS
Frequently Asked Questions: PG Electroplast Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What is PG Electroplast Ltd's deep value score?
PG Electroplast Ltd has a deep value score of 49/100 (rated Average). This score is calculated from three components
- Earnings Score: 33/40 — measures PAT growth momentum across quarters
- Underperformance Score: 23/35 — how much the stock trails Nifty 500 (deeper underperformance = higher contrarian signal)
- Quality Score: 25/25 — operational quality (margins, revenue growth, valuation)
Is PG Electroplast Ltd fundamentally improving?
PG Electroplast Ltd's quarterly profit (PAT) growth trajectory
- Latest Quarter PAT Growth (QoQ): +500%
- Previous Quarter PAT Growth (QoQ): -96%
- 2 Quarters Ago PAT Growth (QoQ): -54%
- PAT Acceleration: +277.2pp (profits are accelerating)
- 1 consecutive quarters of positive PAT growth
Why is PG Electroplast Ltd underperforming despite good earnings?
PG Electroplast Ltd is underperforming the market despite improving earnings — this is the core deep value thesis
- 1-Year Return vs Nifty 500: -42%
- 6-Month Return vs Nifty 500: +2%
- 3-Month Return vs Nifty 500: -8%
- Yet average quarterly PAT growth is +116% — earnings are improving
- The market often takes time to re-rate stocks with improving fundamentals. This gap between price performance and earnings improvement is what deep value research seeks to identify.
What is the earnings momentum for PG Electroplast Ltd?
PG Electroplast Ltd's earnings momentum is Accelerating — profit growth is speeding up.
- PAT QoQ progression: -54% → -96% → +500% (2Q ago → 1Q ago → latest)
- Acceleration: +277.2pp
- PAT YoY Growth: +55%
Is PG Electroplast Ltd undervalued?
PG Electroplast Ltd's valuation metrics
- Price-to-Earnings (PE): 53.3x
- Price-to-Book (PB): 5.2x
- PEG Ratio: 0.6x
- Margin of Safety: -8% (appears fairly valued)
What are the revenue and margin trends for PG Electroplast Ltd?
PG Electroplast Ltd's revenue and margin trends
- Latest Quarter Revenue Growth (QoQ): +115%
- Average Quarterly Revenue Growth: +13%
- Revenue Acceleration: +68.4pp
- Latest OPM Change: +3.7pp (margins expanding)
- Average OPM Change: -0.9pp
- Revenue YoY: +46%
What is PG Electroplast Ltd's trailing twelve month (TTM) performance?
PG Electroplast Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹277 Cr
- TTM PAT Growth: +30.1% YoY
- TTM Revenue: ₹5,000 Cr
- TTM Revenue Growth: +35.8% YoY
- TTM Operating Margin: 8.7%
What sector does PG Electroplast Ltd belong to?
PG Electroplast Ltd key facts
- Sector: Consumer Electronics - EMS
- Market Cap: ₹15.1K Cr
- Rank in Consumer Electronics - EMS: #1 by value score
- Overall rank among all deep value stocks: #1
Is PG Electroplast Ltd a good deep value opportunity to study?
PG Electroplast Ltd shows limited deep value signals currently — score is 49/100 (Average). Monitor for improvement.
- Value Score: 49/100 (Average)
- Earnings: Accelerating
- 1Y Underperformance: -42% vs Nifty 500
What is the bull and bear case for PG Electroplast Ltd?
Research Signals (Bull Case)
- Earnings accelerating — profit growth speeding up
- Revenue growth also accelerating
Risk Factors (Bear Case)
- Significant underperformance (-42% vs Nifty 1Y)
- Margin pressure warning
- Operating margins contracting
Which other Consumer Electronics - EMS stocks are deep value opportunities?
Other deep value stocks in Consumer Electronics - EMS
- Dixon Technologies (India) Ltd — Score 52/100, Average
How does the Consumer Electronics - EMS sector look for deep value?
Consumer Electronics - EMS deep value sector overview
- 2 deep value stocks in this sector
- Average value score: 51/100
- Avg PAT acceleration: +134.3pp
- Top pick: PG Electroplast Ltd
What is deep value investing?
Deep value investing studies stocks that are underperforming the market despite showing improving fundamentals. The thesis is that the market has not yet recognized the earnings recovery, creating a potential valuation gap. It requires patience — recovery can take several quarters.
How is the deep value score calculated?
The deep value score (0-100) combines three factors:
- Earnings (0-40 pts): PAT growth across last 3 quarters, acceleration, and consecutive growth - Underperformance (0-35 pts): How much the stock trails Nifty 500 over 1Y, 6M, 3M (deeper underperformance = higher score) - Quality (0-25 pts): Revenue growth, margin trends, and valuation metrics (PEG, P/B)
Higher score indicates a stronger contrarian research signal.
What are the growth catalysts for PG Electroplast Ltd?
PG Electroplast Ltd has 4 key growth catalysts identified from recent earnings analysis
- Operating Leverage Inflection
- New Product Or Brand Launch
- Market Share Gains
- AC Business Growth of 80.5% YoY
What are the key risks in PG Electroplast Ltd?
PG Electroplast Ltd has 3 key risks worth monitoring
- Forex loss of INR 8
- Sharp rise in copper and aluminum prices necessitating price hikes
- Provision of INR 1
What did PG Electroplast Ltd's management say in the latest earnings call?
In Q3 FY26, PG Electroplast Ltd's management highlighted
- "we expect PGEL to be having revenues in the range of Rs. 5,700-Rs. 5,800 crores and net profit is expected to be between Rs. 300-Rs. 310 crores. [Pre..."
- "So Vishalji, we are putting up a capacity of 1.2 million refrigerators in our Sricity factory. So that should be up and running by the fourth quarter ..."
- "Now in this EBITDA, we had a forex loss of INR8.2 crores versus the same quarter last year, a loss of INR1.4 crores. [Risk (fx): MEDIUM]"
The above FAQs are generated from publicly available earnings data. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.