3000 per cent returns: This multibagger small

On Friday, shares of PG Electroplast zoomed more than 3 per cent to trade at an intraday high of Rs 1578.80 apiece on BSE. The scrip witnessed massive spurt volume by more than 1.39 times, and closed 2.56 per cent up at Rs 1562.25 per share on BSE, by the end of the session

In the current quarter, the company achieved impressive financial results, with net sales reaching Rs 676 crore, marking a substantial growth of 26.3 per cent compared to the same quarter last year. The operating profit for the quarter also showed a remarkable improvement, standing at Rs 64.20 crore, representing a substantial growth of 84.3 per cent year-on-year.

Furthermore, the quarterly net profit exhibited exceptional performance, reaching Rs 33.81 crore, as opposed to Rs 16.40 crore in the first quarter of the previous financial year, showcasing a remarkable growth of 106.1 per cent. Another success story came from PGEL's 100 per cent subsidiary, PG Technoplast, which attained an impressive revenue of Rs 392 crore.

The company's dedication to innovation was evident as it successfully developed and launched new products in the washing machine segment. Furthermore, the company is actively working on creating new platforms for room ACs, signalling its commitment to future growth. In the coming year, the company aims to bolster its capacity in the room AC and TV business through joint ventures.

The product business was a driving force behind the company's revenues, contributing 65 per cent to the total in 1QFY24. This segment exhibited remarkable growth of 39.9 per cent year on year, with the AC product business particularly soaring with over 52 per cent growth. The TV & Electronics business also made substantial strides, contributing 7.3 per cent to the total revenues and witnessing an impressive growth rate of 110 per cent in 1QFY2024.

The company's financial metrics also displayed notable improvements. The capital efficiency of the business saw enhancement, with a ROCE of 22.8 per cent and a ROE of 24.9 per cent for the trailing 12 months, ending June 2023. Additionally, the net fixed asset turns for the consolidated entity stood at an impressive 4.5x.

Looking forward, the company plans to intensify its focus on research and development, aiming to fuel further growth through new product development. The company is making aggressive investments in new platforms for both Room ACs and washing machines, positioning itself for sustained expansion and success in the future.

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Disclaimer: The article is for informational purposes only and not investment advice.