PG Electro on the buzz

PG Electroplast (PGEL) is buzzing today; from its close of Rs.514.50, it opened at Rs.525.90 and rose to an intraday high at Rs.526.10 and itsv52-week high is at Rs.1054.95.

The market is happy with its announcement – acquisition of 50 acres of land in Sri City, Andhra Pradesh. This is the company’s first facility in South India and its largest-ever land acquisition.

It has planned investment worth Rs.1,000 crore over the next 5 years. Strategic location of being closer to Chennai Port enables strong export potential.

This acquisition shows the company is scaling up to compete head-on with peers like Dixon and Amber. It also shows that from a midcap EMS player, PGEL is positioning to become a top-tier integrated white goods manufacturer.

By FY27, once the Andhra unit is operational, PGEL’s revenues could see a step jump, with refrigerators becoming a new growth engine. Its future phases (ACs, washing machines, electronics) will further diversify the product mix. But execution and funding (Rs.1,000 crore capex) will be key watch factors.