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Mint
16-07-2025
- Business
- Mint
Multibagger alert: These three stocks turned ₹1 lakh into ₹2 crore in five years.
A few stocks on Dalal Street have delivered such staggering returns over the past five years that they've turned modest investments into substantial wealth. Take the case of three companies whose shares multiplied by up to 200X. Imagine investing ₹1 lakh exactly five years ago, and you would have up to ₹2 crore by now. Undoubtedly, such stocks are hard to find, and even if you do, you need the patience to sit tight. What often drives such rallies are industry tailwinds, government focus, management changes, or business restructuring. But what's really behind their rise? And after such a steep rally, is there still steam left? Let's take a look. It all starts with PG Electroplast Ltd PG Electroplast has delivered a return of 20,000%, rising from ₹4 on 17 July 2020 to ₹802 today. The company has transformed into a dominant player in the electronic manufacturing services (EMS) space—a sector benefiting from a strong structural industry tailwind. Back then, it primarily manufactured plastic mouldings for sectors like consumer durables. In 2019-20, this segment contributed the most to its revenue, accounting for 69% ( ₹441 crore) of its total revenue of ₹640 crore. The rest (24%) came from product segments (room ACs, washing machines, and air coolers). Its other segments include electronics (televisions and printed circuit boards) and appliance manufacturing. However, the China+1 manufacturing theme and the government's push for 'Make in India' through production-linked incentives (PLIs) brought a transformational shift not just for PG Electroplast, but for the entire EMS sector. This shift is evident in the product segment's revenue, which rose 15-fold to ₹3,526 crore in 2024-25, from just ₹150 crore in 2019-20. The segment now contributes 71% to its total revenue, which also grew about 8X to ₹4,870 crore. At the same time, the plastic moulding division's contribution fell to 20%, from 69%. The company's net profit surged 100X to ₹288 crore, from just ₹2.6 crore in 2019-20. Such a steep jump in profitability is typically what drives multibagger returns. Return ratios have also seen a sharp rerating. Return on equity (RoE) expanded to 15% (19% in 2023-24) from 13.4%. Return on capital employed (RoCE) has almost doubled to 27%—showing efficient utilization of capacity. None of this would have been possible without expanding manufacturing capacity. The company's fixed assets have grown 4X to ₹1,139 crore, from ₹253 crore in 2019-20. Looking ahead, PG is well-positioned to benefit from a structural long-term tailwind in the EMS space. Rapid urbanization, government reforms, low penetration of consumer durables, and the China+1 theme are all expected to sustain growth momentum. The company expects revenue to rise 30% to ₹6,345 crore in 2025-26, with 75% coming from the product business. Net profit is also expected to rise 39% to ₹405 crore. To support this growth, PG is also expanding its manufacturing footprint. It is setting up a washing machine facility at Greater Noida in Uttar Pradesh, a refrigerator plant in the South, and an AC capacity in Maharashtra's Supa. However, valuations leave little room for error. It trades at a price-to-earnings (P/E) multiple of 80, well above its five-year median of 55. But it still trades at a discount to its closest peer, Dixon Technologies (India) Ltd, which trades at 123X earnings. Transformers and Rectifiers joins the 100-bagger club Transformers and Rectifiers (India) Ltd has delivered a return of 10,000%, rising from ₹5 on 15 July 2020 to ₹510 today. That means your investment of ₹1 lakh would be worth ₹1 crore today. The company is a leading player in transformer and reactor manufacturing in India, with a global presence. Its diverse product range includes power transformers (up to 500 MVA), furnace transformers, rectifier and distribution transformers, as well as speciality transformers. Its products are used across industries, including power distribution, petrochemicals, pharmaceuticals, power transmission, metal processing, cement, and railways. The company has also ventured into renewable-focused segments, including transformers for solar applications and green hydrogen. Its customer base includes all the leading players, including NTPC, JSW, Tata Power, Siemens Energy, Torrent Power, Blue Star, and Hindustan Zinc. The company has been a key beneficiary of rising infrastructure investment in India. The government capital expenditure, growing global power demand, and rapid expansion of data centres have all contributed to strong demand for power equipment, including transformers. The numbers reflect this momentum. Revenue has grown at a compound annual growth rate (CAGR) of 28% during FY21-FY25, rising from ₹727 crore to ₹1,950 crore. Ebitda margin expanded from 10% to 16% as operating leverage kicked in, while net profit margin surged by 860 basis points to 9.5% in 2024-25. Ebitda stands for earnings before interest, taxes, depreciation, and amortization. With improved margins, the company's net profit rose nearly 27-fold, from ₹7 crore to ₹187 crore during the same period. RoCE also nearly doubled to 23%, from 12%. Yet, the growth story may still have more legs. As of 31 March 2025, the order book stands at ₹5,132 crore, providing strong revenue potential. In addition, order inquiries worth over ₹22,000 crore are currently under negotiation. The company has set an ambitious target to become a $1 billion ( ₹8,600 crore) revenue player by 2027-28. This implies a sharp CAGR of 64% between 2024-25 and 2027-28—a target that management remains confident of achieving through strong execution, innovation, and financial discipline. Notably, it expects profit growth to outpace revenue expansion, supported by operating leverage and other efficiencies. The company aims to maintain a consistent margin of 16-17% going forward and improve it further through operational efficiencies. Key strategic priorities include strengthening backwards integration, investing in automation and digital transformation, and focusing on clean, sustainable energy solutions in alignment with India's power sector goals. It has also acquired a controlling stake in a CRGO processing unit—a key input that accounts for 32%-35% of transformer manufacturing costs. This move ensures 100% backwards integration, offering a price, margin, and product quality advantage. This is expected to enhance competitiveness in order booking and profitability. The company is also expanding its manufacturing capacity to meet rising demand. A 15,000 MVA capacity expansion kicked off in Q1FY25, with Phase 1 operations expected to begin by May 2025. This phase will contribute about half the incremental volume, with full capacity becoming commercially available by Q2FY26. Additionally, it also expects a 22,000 MVA extra-high voltage transformer expansion to be completed by Q4FY26. These projects will increase its capacity from 40,000 MVA to 75,000 MVA. The company also plans to enter the fast-growing HVDC (High Voltage Direct Current) segment soon. That said, after such a steep rally, it now trades at a P/E of 72, in line with its five-year median of 64. What's behind SG Finserv's 180x run SG Finserv became part of the APL Apollo Group following its acquisition in 2022. It was initially set up to meet the funding needs of dealers associated with APL Apollo Tubes, the group's flagship company. As of 31 December 2022, the company's assets under management (AUM) stood at ₹736 crore, when it had just begun financing APL vendors. Over time, it expanded its scope to offer financing solutions to SMEs, MSMEs, and other corporate entities. The AUM has since grown over threefold to ₹2,326 crore. The portfolio is geographically diversified, with the North contributing 44%, followed by the South (30%), the West (23%), and the East (3%). Notably, it holds zero gross non-performing assets. Around 80% of the book is backed by a charge on funded inventory and receivables generated through sales, which maintains a light asset quality. With AUM growing rapidly, revenue grew from ₹2 crore in FY22 to ₹171 crore in FY25. Net profit also rose from ₹1 crore to ₹81 crore in the same period. The company's share price has surged 18,348%, from ₹2.2 on 22 July 2020 to ₹404 today. But it's a company poised for rapid growth, with plans to scale its AUM to ₹6,000 crore by 2026-27. To drive this expansion, it is partnering with large corporations, including the Tata group, Vedanta, Ashok Leyland, and Adani Group. Backing this effort, memorandums of understanding worth ₹5,500 crore are already in place, laying the groundwork for the next leg of growth. Madhusudan Kela holds a 1.7% stake in the company as of Q4FY25. The stock trades at a price-to-book ratio of 2.6, below its five-year median of 3X. Conclusion These three companies may have delivered extraordinary returns, but each benefited from a mix of industry tailwinds, business reinvention, and financial discipline. While past performance has been stellar, future gains will likely depend on execution, margin sustainability, and valuations that leave little room for error. For investors, the key lies in distinguishing between momentum and long-term fundamentals. About the author: Madhvendra has over seven years of experience in equity markets and has cleared the NISM-Series-XV: Research Analyst Certification Examination. He specialises in writing detailed research articles on listed Indian companies, sectoral trends, and macroeconomic developments. Disclosure: The writer does not hold the stocks discussed in this article. The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only.
Business Standard
24-06-2025
- Business
- Business Standard
Indices trade with minor gains; consumer durables shares rally for 3rd day
The domestic equity benchmarks traded with moderate gains in the mid- afternoon trade, tracking a sharp rally in Asian markets after US President Donald Trump announced a ceasefire agreement between Iran and Israel. The easing of geopolitical tensions led to a pullback in global crude oil prices, providing further support to domestic equities. The Nifty traded above the 25,050 mark. Consumer durables shares witnessed buying demand for the third consecutive trading session. At 14:30 IST, the barometer index, the S&P BSE Sensex, added 234.92 points or 0.29% to 82,134.77. The Nifty 50 index rose 92.85 points or 0.37% to 25,064.70. The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.56% and the S&P BSE Small-Cap index added 0.72%. The market breadth was strong. On the BSE, 2,876 shares rose and 1,014 shares fell. A total of 151 shares were unchanged. Buzzing Index: The Nifty Consumer Durables index rose 0.55% to 37,433.25. The index added 2.11% in the three consecutive trading sessions. PG Electroplast (up 4.04%), Kajaria Ceramics (up 3.22%), Voltas (up 1.4%), Blue Star (up 1.28%) and Kalyan Jewellers India (up 1.02%), Havells India (up 0.72%), Amber Enterprises India (up 0.5%), Century Plyboards (India) (up 0.44%), Bata India (up 0.33%) and Titan Company (up 0.32%) added. On the other hand, Whirlpool of India (down 1.91%), V-Guard Industries (down 0.08%) declined. Numbers to Track: The yield on India's 10-year benchmark federal paper shed 0.46% to 6.279 from the previous close of 6.308. In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 86.0250 compared with its close of 86.7850 during the previous trading session. MCX Gold futures for 5 August 2025 settlement fell 2.05% to Rs 97,340. The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.29% to 98.10. The United States 10-year bond yield added 0.25% to 4.330. In the commodities market, Brent crude for August 2025 settlement tanked $2.52 or 3.53% to $68.96 a barrel.
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Business Standard
18-06-2025
- Business
- Business Standard
India-China electronics firms turn to tech tie-ups as JV rules delay deals
Talks between Voltas and China's Highly Group have failed to revive their previously scrapped joint venture (JV) for setting up a compressor plant in India. The Chinese firm has now offered a technical partnership in light of continued political tensions and regulatory bottlenecks, according to a report by The Economic Times. A Voltas team reportedly visited China in late May to reopen talks, but Highly Group declined to pursue an equity partnership, citing delayed government approvals and geopolitical tensions. Instead, it offered a technology-sharing arrangement, an option it had previously rejected two years ago. Firms explore non-equity deals under electronics manufacturing scheme The development comes even as Indian firms ramp up efforts to secure partnerships under India's ₹23,000-crore electronics component manufacturing scheme, aimed at reducing import dependence and boosting local production. Efforts to secure Chinese equity investment continue to face hurdles under existing policy restrictions, such as Press Note 3, which requires multi-agency clearance for investments originating from neighbouring countries. However, companies on both sides appear more receptive to low-equity or non-equity collaborations. Regulatory constraints on Chinese investment were introduced in 2020 following border clashes with Chinese troops. Despite this, industry leaders maintain that Chinese technology remains critical for building a globally competitive electronics manufacturing ecosystem in India. Tech partnerships already forming Industry executives say Indian firms are now prioritising access to Chinese technology over capital. Some partnerships even limit Chinese equity to 20–30 per cent, or exclude it entirely, the report said. One such technical partnership has already materialised. Highly has already signed a technical deal with PG Electroplast to manufacture air conditioners. PG Electroplast also plans to invest ₹350 crore in a compressor plant near Pune with a five-million-unit annual capacity.
Economic Times
30-05-2025
- Business
- Economic Times
Market surge leads to Rs 50,000 crore worth stake sales by promoters and shareholders
Agencies Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Mumbai: The stock market rebound in the past few months has prompted dominant shareholders and promoters of companies to trim their far this month, they have sold shares worth over ₹50,000 crore through bulk and block deals on the bourses after a lull, continuing from where they left off before October, when the stock market was in the midst of a bull to exchange data, prominent shareholders and promoters divested stakes in ITC InterGlobe Aviation (IndiGo), PNB Housing and One 97 Communications (Paytm) this month, along with Kfin Technologies , KPR Mill and PG Electroplast. The divestments ranged from ₹1,133 crore to ₹12,941 crore since May 1."A significant amount of domestic liquidity had been waiting on the sidelines for market stability," said Ajay Saraf, ED and head of investment banking at ICICI Securities. "With foreign funds turning positive on India's secondary market and key overhangs like geopolitical tensions and tariff concerns easing, the deal market has roared back to life."This momentum is expected to continue as long as the current positive sentiment holds and no major crisis disrupts the environment, said the largest deals, British American Tobacco sold 2.5% of its stake in ITC , worth ₹12,941 crore while Singtel affiliate Pastel Ltd sold Bharti Airtel shares worth ₹12,880 crore. BAT is the largest shareholder in ITC, while Singtel is part of the promoter group of Bharti. InterGlobe Aviation promoter Rakesh Gangwal and his family trust sold a 5.72% stake for about ₹11,564 equity firm Carlyle's subsidiary, Quality Investment Holdings, offloaded its entire stake of 10.4% in PNB Housing Finance worth ₹2,713 crore. Ant Financial, the fintech subsidiary of Alibaba Group, sold shares of One 97 Communications worth ₹2,104 crore through open-market Technologies promoter General Atlantic Singapore Fund Pte sold shares worth ₹1,790 crore."The resurgence in Indian equity capital market deals is being driven by a confluence of positive factors - stabilising geopolitical tensions, easing trade uncertainties, encouraging full-year corporate earnings, improving high-frequency macro indicators, renewed FII interest, and sustained retail inflows into domestic mutual funds," said Ranvir Davda, co-head of investment banking at HSBC India. "We believe that IPOs, blocks, and follow-on activity in the second half of calendar year 2025 will be significantly higher compared to the first half, with multiple companies having already received Sebi approval and several other listed companies having announced plans for fund-raising."The selling in the secondary market was not limited to large caps and extended to small and midcap companies such as PG Electroplast and KPR Mill, in which promoters reduced stakes by selling shares worth ₹1,132 crore and ₹1,232 crore, respectively. So far in May, the Nifty 50 has gained 2.05% while the Nifty Midcap 150 has risen 6.5% and the Smallcap 250 has advanced 9.2%."FY24 saw an all-time high in promoter exits, which was also on the back of a bullish market," said Pranav Haldea, MD, Prime Database Group. "While promoter buying is always a good sign, reasons for exit can vary and range from cashing out due to good valuation, setting up other businesses, debt reduction and personal reasons."While policy announcements from the US remain unpredictable, the momentum in open-market transactions looks likely to continue, he said.
Economic Times
29-05-2025
- Business
- Economic Times
The Electric and Electronics Sector: A Bright Future Ahead
ADVERTISEMENT The electric and electronics sector has shown a mixed performance recently, with a slight decline observed over the past week and month. However, the sector has demonstrated resilience with a positive growth trajectory over the past year, indicating a robust recovery and potential for future expansion. The recent collaboration between India and Japan to enhance technology transfer in renewable energy solutions is a significant catalyst for growth in this sector. This partnership is expected to create numerous job opportunities and promote the adoption of green technologies across India. The involvement of key stakeholders, including the Indian Ministry of Electronics and Information Technology and Japanese technology firms, is likely to facilitate knowledge sharing and spur innovation. As a result, the sector is anticipated to experience long-term growth, with an increase in exports of electronic goods and components, further integrating India into global supply chains. Overall, the outlook for the electric and electronics sector remains positive, with substantial upside potential for investors and stakeholders alike. Company Name Current Price Target Price Upside Potential Recommendation Elgi Equipments Rs. 504.45 Rs. 643.00 28% Buy PG Electroplast Rs. 779.90 Rs. 988.00 27% Buy PG Electroplast Limited is an electronic manufacturing services(EMS)provider for original equipment manufacturers(OEMs)of consumer electronic products in India. The company specializes in manufacturing and assembling a wide range of consumer electronic components and finished products, including kitchen appliances, air conditioners, and mobile handsets. With a diverse clientele of over 45 Indian and global brands, PG Electroplast is well-positioned in the market. ADVERTISEMENT Analysts recommend a 'Buy' for PG Electroplast, with a target price of Rs. 988.00, indicating an upside potential of 27%. The company's financial performance has been impressive, with a year-on-year PAT growth of 108.81% and sales growth of 77.3%. Despite a recent decline in stock price over the past month, the long-term outlook remains strong, supported by significant growth in the last year, where the stock appreciated by over 200%. ADVERTISEMENT Elgi Equipments Limited is engaged in the manufacturing and trading of air compressors, offering a wide range of products including oil lubricated and oil-free compressors. The company serves various industries, providing innovative solutions tailored to customer needs. With a strong market presence, Elgi Equipments is recognized for its quality and reliability. Analysts also recommend a 'Buy' for Elgi Equipments, with a target price of Rs. 643.00, reflecting an upside potential of 28%. However, the company's recent financial performance has shown some challenges, with a slight decline in PAT and modest sales growth. Despite these setbacks, the stock has shown resilience, with a positive return over the past week and month, indicating potential recovery in the near future. (You can now subscribe to our ETMarkets WhatsApp channel)
