Most of the so called experts are furious it seems, but strangely when they promote any story then suddenly valuation multiple are shown in projection of earning of FY27/FY28 etc.. and all optically looks cheap, just look at CDMO valuations..after any disappointing quarter, we accept it saying it’s lumpy business..
Anyways finally valuation is in the eye of beholder..
There is no hype in the market for new product category. Already there is a lot of penetration of these machines in india, not sure about the demand trend now.
Capex, volume and revenue potential details are awaited
Agree on market sentiments but Doesn’t matter as its definitely true that short term pains are going to be there. There should be opportunities to add more in September and maybe December? Expecting bad results for the former atleast. Hopefully any further fall to 450 levels would be great times to buy. The GST ruling should hold back September results as people postpone sales to get cheaper products so I see opportunities ahead.
Invested and very positive on PGEL future
Any one Having done check from Dealers or Stores about sales of AC as of now? As per my view There was rain across India, But Heat was also there, So if they give some discount and with now less GST they should be able to sale their Inventory? Anyone having done on ground check then it will be really helpful?
Inventories of PG electroplast have gone 2.5 x from 525cr (fy24) to 1364(fy25)
And I think company is well positioned to take advantage of that unsold inventories in upcoming quarter ,whereas other player will face compression of gross margin due to increase price of raw material of plastic ,crude oill
Pg electroplast can reap the benifit of its huge inventory stock and can maintain its gross margin
March and June quarter are their main season and plastic price have rise too sharply for last 1-2 months
So before this price hike, most of the old i.e. last year inventory was sold off as dealers load up in february and march, so they will get partial benefit not full according to me.
Yes partial benifit is more correct term
Most of This RM inventory they would have finished by the Q3 end.
Price hike in the RM is pass through to the customer to protect the margins.
