PG Electroplast Share Price Gains 3% as Subsidiary Signs ₹1,000 Crore Deal with Maharashtra Govt | Stock Market Today

Market Performance

PG Electroplast shares opened the week on a positive note. On September 1, the stock climbed 3% to ₹551 per share, defying the recent downtrend it has faced.

This rebound came right after a major development involving its subsidiary, Next Generation Manufacturers.

However, it’s important to note that despite today’s rally, PG Electroplast stock has been under pressure for the last month, dropping nearly 30%. In comparison, the Nifty 50 slipped only 0.2% during the same period.

The Big Development

The momentum was fueled by a Memorandum of Understanding (MoU) worth ₹1,000 crore signed between PG Electroplast’s arm and the Government of Maharashtra.

The deal was sealed in Mumbai in the presence of Chief Minister Devendra Fadnavis and Industries Minister Uday Samant.

Key Highlights of the MoU:

• A greenfield consumer electronics facility to be set up at Kamargaon in Ahilyanagar.
• The project is a part of the Magnetic Maharashtra initiative.
• The facility will focus on manufacturing air conditioners, washing machines, refrigerators, and related products.
• The plant is designed to be highly vertically integrated, aimed at boosting the local components ecosystem.
• The project is set to generate over 5,000 jobs, both direct and indirect, boosting the consumer electronics ecosystem in western India.

Company Financials & Guidance

While the news adds long-term growth potential, the company’s financial guidance has weighed on investor sentiment over the past month.

• Net Profit Guidance (FY): ₹300–₹310 crore
  • Growth of 3%–7% YoY
  • Down from earlier projection of ₹405 crore
• Product Business Growth:
  • Now estimated at 17%–21%
  • Revenue outlook: ₹4,140–₹4,280 crore
  • Cut from earlier guidance of ₹4,770 crore
• Group Revenue Guidance:
  • Revised to ₹6,550–₹6,650 crore
  • Lower than the earlier forecast of ₹7,200 crore

These trimmed estimates have been the main reason behind the 30% slide in PG Electroplast shares before today’s bounce.

Summary

To sum it up, PG Electroplast share price surged 3% today to ₹551, supported by its subsidiary’s ₹1,000 crore MoU with the Maharashtra government. The new facility under the Magnetic Maharashtra initiative not only boosts the company’s manufacturing scale but also promises over 5,000 new jobs in the region.

That said, investors are still cautious due to the recent downward revision in revenue and profit guidance, which has kept the stock under pressure in recent weeks.