PG Electroplast share price tanks another 15%. Nuvama cuts target prices, analysts warn of more downside

After plunging 20% on Friday, shares of PG Electroplast fell another 15% on Monday morning, taking their two-day loss to 30%.

After hitting the 10% lower circuit, the stock fell another 5% to Rs 500.50 on BSE after Nuvama cut its target price from Rs 1,100 to Rs 710.

The downgrade was driven by weak Q1 numbers, as PG Electroplast posted 14% YoY revenue growth, while EBITDA contracted 7% YoY due to under-absorption of costs.

The management also reduced its consolidated revenue guidance for FY26 to 18%, down from 30% earlier, citing a challenging start to the year, soft seasonal demand, and excess inventory in channels and with brands. It further lowered its FY26 EBITDA margin guidance by 125–150 basis points due to under-absorption of overheads and cut PAT guidance by 23% YoY.

Moreover, 79 lakh shares (2.82% equity), worth Rs 406 crore, changed hands at an average price of Rs 501 per share via a block deal today.

PG Electroplast has additionally trimmed its FY26 capex plan to Rs 7–7.5 billion from Rs 8–9 billion.

“We are slashing FY26E/FY27E/FY28E EPS by 36%/25%/10% on lower RAC growth and margin assumptions, while also factoring in higher interest costs for FY26E. This yields a June 2026 target price of Rs 710 (45x June 2027E EPS) versus Rs 1,100 earlier, which was based on 55x June 2027E EPS,” Nuvama said.

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“While April was robust (+70% YoY), May moderated to 18% growth, and June and July saw sharp order cancellations (-70% YoY), leading to adverse operating leverage. Revenue growth guidance for FY26 has been reduced to 18% (earlier 30%), along with an EBITDA margin contraction of 125–150bp, assuming: i) weak Q2 and Q3 performance; ii) large inventory; and iii) softened demand. PGEL, however, remains committed to its long-term FY28 revenue target of Rs 90 billion, based on 4–5x asset turns,” the company said.

Technical analysts noted that PG Electroplast had been one of the rare stocks to buck the broad market downtrend between September 2024 and March 2025, staying near record highs since January.

“But the buying interest, which helped keep the stock near record peaks since January, was missing on Friday, partly due to poor guidance. This suggests it might be too early to attempt an entry. Nearest supports are at Rs 545 and Rs 508, while the Rs 690–727 band is likely to act as near-term resistance,” said Anand James, Chief Market Strategist, Geojit Investments.

LKP Securities’ Rupak De added that the stock has broken down from its recent consolidation phase.

“Moreover, the fall was accompanied by high volumes. The chart looks extremely weak, and further downside appears likely. Exiting on bounces seems a better strategy than attempting bottom-fishing,” he said.

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