Shares of PG Electroplast Ltd were locked in a 15% lower circuit at Rs 501 on Monday following large block deals hit the market. Around 79 lakh shares, representing 2.82% of the company’s equity, changed hands through multiple block deals at an average price of Rs 501 per share, taking the total transaction value to Rs 406 crore.
The sharp fall came after a turbulent session last Friday when the stock plunged 23%—its biggest single-day fall on record—following a steep cut in full-year guidance. Despite this, brokerage firm Nuvama maintained its ‘buy’ rating on August 11 but slashed its target price by 35% to Rs 710 from Rs 1,100 earlier, implying a potential upside of 25% from Friday’s closing levels.
Nuvama has also reduced PG Electroplast’s FY26 EPS estimates by 35%, FY27 by 25%, and FY28 by 10%, citing lower room AC growth and margin assumptions along with higher interest costs for FY26. The company now expects revenue growth between 17–19% for the full year, down from the earlier 30.3% guidance. Group revenue growth has been revised to 21–23% from 33%, net profit growth to 3–7% from 39.2%, and product business revenue growth to 17–21% from 35% guided earlier.
During its earnings call, management trimmed full-year capex guidance to Rs 700–750 crore from Rs 800–900 crore, citing high inventory build-up as a major concern that is leading contract manufacturers to slow production.
Nuvama highlighted PG Electroplast’s strategic evolution from a traditional plastic moulding player to a key OEM/ODM solutions provider for consumer durables in India, while flagging competitive intensity and supply chain risks as key challenges. Out of 11 analysts covering the stock, seven have a ‘buy’ rating, three recommend ‘hold’, and one has a ‘sell’.
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