Shares of PG Electroplast Ltd. saw a significant rise of 7.56%, trading at ₹2,560.10 on the NSE as of 10:25 am. This surge follows the company’s announcement to split its equity shares. The company, which provides manufacturing services to OEMs of consumer electronic products, will split one equity share of ₹10 face value into ten shares of ₹1 face value each.
This is the first time PG Electroplast has undertaken such a corporate action. Stock splits are generally implemented to increase the number of outstanding shares and improve trading liquidity, making the stock more affordable to a broader range of investors. The record date for this stock split has not yet been determined.
In addition to the stock split, PG Electroplast also reported strong financial results for the fourth quarter. The company’s revenue grew by 30% to ₹1,076 crore, driven largely by a 25% growth in its product business. The product business now accounts for 72% of the company’s total revenue for the March quarter.
The management expressed confidence in scaling the product business further in the next financial year, aiming for significant growth in FY2025.
PG Electroplast also reported an improvement in its EBITDA margin, which rose to 10.8% from 9.1% in the same quarter last year. This improvement was attributed to better cost control, softer commodity prices and increased operating leverage.
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