Equirus has initiated coverage on PG Electroplast (PGEL) with a ‘Buy’ rating and a target price of ₹980, indicating a potential upside of 20.53% from the current market price of ₹813.20.
The brokerage projects a robust revenue, EBITDA, and PAT CAGR of ~39%, ~44%, and ~60%, respectively, over FY24-FY27E. This optimism is driven by PGEL’s strong growth trajectory, as evidenced by a 57% revenue CAGR over FY21-FY24, attributed to:
- Product diversification.
- New customer acquisitions.
- A strategic shift in the sourcing mix from brands.
- Increased market penetration.
During this period, EBITDA growth outpaced revenue, soaring at a 76% CAGR, supported by cost leadership and margin expansion.
Equirus remains positive on PGEL’s growth prospects, citing its ability to maintain momentum in a competitive market.
Disclaimer: This is for informational purposes only and should not be considered as financial advice. Please consult your financial advisor before making any investment decisions.
