PG Electroplast shares surge nearly 3% as Nuvama initiates ‘BUY’ rating with ₹710 target price

PG Electroplast shares saw a strong surge after the company announced that its board would consider a fund raise during a meeting scheduled for October 19, 2024.

In addition, Nuvama initiated coverage on PG Electroplast with a ‘BUY’ rating and a target price of ₹710, valuing the stock at 50x Dec-26E EPS.

Key Rationale Behind Nuvama’s Rating:

1. PG Electroplast is a key beneficiary of the strong momentum in refrigeration and air conditioning (RAC) units and washing machines.
2. The company is positioned to diversify and scale up in high-growth categories such as electronics and IT hardware.
3. PG Electroplast has evolved from a plastic moulding company to an integrated OEM/ODM player, enhancing its growth potential.

As of 9:22 am, the shares were trading 2.825% higher at ₹608.00 on the NSE.