PGEL Share Cracks 16% Intraday, Down 38% In One Week; Why Is Stock Falling?
PGEL shares dropped 16% intraday, falling below Rs 500. The stock is down 38% in a week due to weak Q1FY26 results. Management remains optimistic about FY26 guidance.
PGEL shares fall 38% in past five sessions.
PGEL Share Price: PG Electroplast Ltd shares crashed 16 per cent intraday on Monday to come down below Rs 500-mark, continuing the downward rally of the past five sessions. Shares are now down 38 per cent in a week, falling from near Rs 800-mark. The sharp pressure on stocks came following weak Q1FY26 results due to poor summer season, with net profit falling to Rs 66.71 crore, versus Rs 84.93 crore in Q1FY25.
crores.
The Product business contributed 77.1% of overall revenues, growing 16.7% YoY.
Within this, Room ACs grew 15.1% YoY, Washing Machines grew 36.1% YoY, and Coolers declined marginally by 3.9% YoY.
Despite the weak quarterly earnings, the management is upbeat about meeting its revised guidance for the financial year ending March 31, 2026, according to MD Vikas Gupta in an interview with CNBC-TV18.
Gupta said one poor summer season couldn't alter the company's long-term prospects. Inventory levels to normalize by October-November ahead of the peak production months kicking off in November, he said.
The stock's 52-week movement indicates a high of Rs 1054.95 and a low of Rs 415, respectively.
'The early arrival of the monsoon impacted seasonal sales for Room ACs, making Q1 a more subdued start to the year. However, underlying demand indicators remain robust, and we see significant long-term potential given the relatively low penetration levels in core categories like Room ACs and Washing Machines," said the firm, following its earnings.
In the quarterly earnings, PGEL management is looking increased opportunities from both existing and new clients. 'With enhanced capacities and technological capabilities, PGEL is well-positioned in India's consumer durables and plastics ecosystem," PGEL said in the filing.
The company aims to achieve industry-leading revenue growth, drive gradual margin expansion through operational efficiencies and operational leverage and maintain best-in-class capital efficiency through improved cash flows and balance sheet optimization.
Stocks are also hit sharply when domestic brokerage Nuvama Institutional Equities slashed its target price on the stock by 35 per cent.
While the brokerage maintained its 'buy' call, it slashed its 12-month target price on the firm to Rs 710, down from Rs 1,100 per share. Given the firm's significant room air conditioner inventories, the firm will have very weak September and December quarters, according to the brokerage.
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August 11, 2025, 12:42 IST
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