PG Electroplast share price rises 5.5% on partnership with Whirlpool to manufacture semi-auto washing machines

Stock Market Today: Shares of PG ElectroplastPG Group’s flagship unit gained 5.50% in morning trade on Tuesday, December 24. The company reduced the price to Rs 1,002 each after partnering with Whirlpool.

The company informed investors through a regulatory filing on Monday that it has signed a definitive agreement with Whirlpool of India (“Whirlpool”) for contract manufacturing of select models of Whirlpool-branded semi-automatic washing machines.

Under this arrangement, the company will manufacture certain SKUs for Whirlpool at its factory in Roorkee. The company is already an existing supplier of Whirlpool-branded air conditioners, and the two companies will continue to evaluate potential expansion opportunities, the company said.

Whirlpool India shares also rose 3.55% 1,915.80 after the announcement.

Commenting on the agreement, Narasimhan Eshwar, Managing Director, Whirlpool of India, said, “We are pleased to announce that Whirlpool has entered into an agreement with PG Electroplast for the manufacturing of certain SKUs of its semi-automatic washing machines “

He said, “With Whirlpool’s exceptional design and technology and PGEL’s manufacturing expertise, today’s announcement reaffirms the Government’s ‘Make in India’ initiative and our commitment towards providing best-in-class products at affordable prices to our consumers. “

PG Electroplast is one of the leading diversified Indian electronic manufacturing service providers, offering contract manufacturing to leading consumer durables and electronics brands in India.

company management Sees increased opportunities with existing and new clients Based on current business environment. With new capabilities and capacities, the company is uniquely positioned in the consumer durables and plastics sector in India.

In the coming years, It aspires to achieve industry-leading growth in revenuesGradual improvement in margins due to operational efficiency and operating leverage, and best-in-class capital efficiency resulting in improved cash flow and balance sheet optimization.

In light of this, the company revised its revenue guidance for FY25 4,250 crore, which represents a growth of 54.7% over FY2024 consolidated revenues. Revised net profit guidance now in place ₹250 crore, representing an increase of 82.5% compared to FY2024 net profit 137.0 crores.

In other positive developments, domestic brokerage firm Equirus Securities recently initiated coverage on the stock with a “Buy” rating and target price. 980 each. The brokerage sees scope for growth in the company’s air conditioner, television and washing machine design and manufacturing business and highlights its ability to rapidly scale up new ventures.

PG Electroplast stock up 17,000% in 5 years

PG Electroplast share price has been Trading on pre-split basis from July 10After stock split in the ratio of 10:1. Shares have surged so far in the current year Current trading price of Rs 237 each 977, resulting in a massive gain of 312%.

Over the past five years, stocks have soared 5.69 each at current levels, which translates into a phenomenal return of 17,000%.

Disclaimer, The views and recommendations expressed in this article are those of the individual analysts. These do not represent the views of the Mint. We advise investors to check with certified experts before taking any investment decision.