PG Electroplast Limited

Technology — Electronic Components · NSE

₹521.05−₹2.70 (−0.52%)

DalalBaazaar Score

54 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by negative free cash flow, small-cap size, which brings sharper price swings, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:48 pm

Understanding the Business

Company site ↗

The 60-second version of PG Electroplast Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

PG Electroplast Limited engages in the provision of electronic manufacturing services in India and internationally.

IndustryElectronic Components

SectorTechnology

Employees2,202

Annual revenue₹5,105 Cr

How does it make money?

Turns over ₹5,105 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 2,202 employees supports ₹2.32 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.32 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA CONSULTANCY SERV LT, INFOSYS LIMITED, HCL TECHNOLOGIES LTD, WIPRO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 8.7% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE32.0%

What is the outlook?

9 analysts covering the stock expect revenue to grow about 27.8% and earnings to grow about 56.3% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+27.8%

Est. earnings growth+56.3%

Analysts9

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +139% while net margin moved +6% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+139%

Margin effect+6%

DalalBaazaar Score

54/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROCE of 8.7% is below 10% — capital is not working hard
✗ ROCE has fallen by 9.5 points — returns are eroding
✗ EBITDA margin of 7.5% is thin — little cushion if costs rise
✗ Net margin of 3.5% is slim
• Revenue has compounded at 33.8% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

57/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

37/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

72.9x

3Y Median

70.6x

40 monthly readings · mean 86.9x · range 44.5x–181.3x

Sector Median

16.5x

median of 4 sector peers

🟡Currently trading close to its 3y median of 70.6x — the market is paying about what it usually pays for this company.

⚠️Against its sector it trades 340% above the peer median of 16.5x.

vs. its own history

Fair

70.6x median over 40 months · +3%

vs. sector peers

Expensive

16.5x median of 4 peers · +340%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

40.5x

PEG

2.00

What's Good / What's Bad

🟢 What's Going Well2

Very low debt
Debt/Equity of 0.20x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 19.6% to 6.4% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 18.2% to 8.7% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 2 high · 2 watch

🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Inventory building faster than salesFinancial
Inventory up 353% against revenue up 139% — stock may not be moving.
🟡Receivables growing faster than salesFinancial
Receivables up 170% against revenue up 139% — sales are being booked faster than they are collected.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 25% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 170% against revenue up 139%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 340% above the peer median. That premium needs a reason that persists, or it closes.
Returns on shareholder capital are falling
ROE has dropped from 19.6% to 6.4%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 25% a year✓ 33.8% CAGR
Latest reported year was 35.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 5%✓ 7.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹719 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 8.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 4 neutral · 3 weak

Market Cap

₹14,928 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

72.9x

Expensive

Expensive — verify against sector peers

P/B Ratio

4.88x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹7.15

Profitable

Profitable on a per-share basis

ROE

6.4%

Weak

Weak capital efficiency

ROCE

8.7%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.20x

Low

Conservative leverage

Revenue Growth (YoY)

35.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

13.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.05%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹719 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

31.7x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

6.0%

Average

Average margins

Net Margin

3.5%

Average

Average bottom-line conversion

Current Ratio

1.46

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.11

Defensive

Steadier than the market

52W Range Position

41%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

514.6 / 554.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

51.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,133 Cr	₹2,711 Cr	₹4,796 Cr	₹5,105 Cr	+33.8%
EBITDA	₹168 Cr	₹275 Cr	₹470 Cr	₹382 Cr	+31.6%
EBITDA Margin	7.9%	10.1%	9.8%	7.5%	—
PAT (Net Profit)	₹77 Cr	₹135 Cr	₹288 Cr	₹197 Cr	+36.4%
EPS	₹3.38	₹5.41	₹10.55	₹6.82	+26.4%
ROE	19.6%	13.0%	10.2%	6.4%	—
ROCE	18.2%	15.6%	12.8%	8.7%	—
Total Debt	₹577 Cr	₹435 Cr	₹384 Cr	₹597 Cr	+1.1%
Free Cash Flow	-₹109 Cr	-₹38 Cr	-₹565 Cr	-₹719 Cr	—

🟢 Revenue has grown at 33.8% a year over 3 years.

🟢 EBITDA has grown at 31.6% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 7.5% over 3 years.

🟢 PAT (Net Profit) has grown at 36.4% a year over 3 years.

🟢 EPS has grown at 26.4% a year over 3 years.

🔴 ROE has fallen from 19.6% to 6.4% over 3 years (-13.1 pts).

🔴 ROCE has fallen from 18.2% to 8.7% over 3 years (-9.5 pts).

🟡 Total Debt has been broadly flat over 3 years (1.1% a year).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹5,947 Cr

Total Liabilities

₹2,898 Cr

Cash & Equivalents

₹32 Cr

Operating Cash Flow

₹66 Cr

Capex

-₹785 Cr

Shareholding (proxy)

Institutional Holding

28.8%

Insider Holding

44.6%

Corporate Actions

Dividend Rate

₹0.25

Ex-Dividend Date

18 Sept 2026

Analyst Consensus

Recommendations

8 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹683.56

+31.2% vs CMP

Target Range

₹559 – ₹780

Peer Comparison

Company	P/E	ROE
TATA CONSULTANCY SERV LT	17.3x	45.6%
INFOSYS LIMITED	15.8x	32.0%
HCL TECHNOLOGIES LTD	20.4x	24.6%
WIPRO LTD	14.5x	15.9%

Recent News

4 mixed2 general

PG Electroplast (NSEI:PGEL) Stock Forecast & Analyst Predictions

Simply Wall Street, 09 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Stock Radar: PG Electroplast holds 20-DMA support; breakout above Rs 630 may trigger fresh upside

The Economic Times, 17 Aug

PG Electroplast Share Price Rises 5.13% Today

Univest, 06 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

PGEL Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

PG Electroplast Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

PG Electroplast shares surge 4% on bullish management commentary post-Q1 results

Moneycontrol.com, 07 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Growth

MiddlingValuation · Risk

WeakBusiness Quality · Profitability

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 2 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑