Nuvama Cuts PG Electroplast Share Price Target by 35% After Record Fall
PG Electroplast’s stock has been under pressure after a steep fall in recent trading. The drop coincided with Nuvama reducing its share price target by 35%. The downgrade followed weak first-quarter results and a cut in the company’s growth guidance.
We’re looking at one of India’s leading electronics manufacturing services (EMS) providers facing a tough market moment. The numbers tell the story: softer demand, higher costs, and lower margins. These factors have made analysts rethink earlier expectations.
For investors and industry watchers, this shift is more than a one-day headline. It shows how quickly investor mood can shift when a company’s earnings fall short of expectations. We will examine what triggered the record drop, why Nuvama turned cautious, and how it fits into the bigger picture of India’s electronics sector.
Company Overview
PG Electroplast is a major electronics manufacturing services (EMS) firm in India. It operates in segments like electrical equipment, home appliances, and plastic molding. The stock had performed well through early 2025 before recent turbulence struck.
The Record Fall: What Happened?
On Friday, the share price plunged 20%, then dropped another 15% on Monday, totaling a 30% fall in two trading sessions. It hit the 10% lower circuit and tumbled further to around ₹500.50 on BSE. These sharp moves came after PG Electroplast cut its earnings and revenue forecasts, citing weak demand, high inventory, and rising costs.
Nuvama’s Target Price Cut Explained
Nuvama cut its EPS projections for FY26–28 by as much as 36%. The new June 2026 target is ₹710, down from ₹1,100 earlier. Rising interest costs, weak growth in RAC (room air-conditioner) demand, and poor operating leverage were key concerns.
Financial Performance Snapshot
In Q1 FY26, revenue grew 14% year-on-year to ₹1,503 crore. But net profit fell nearly 20%, hurt by cost pressures and weaker margins. The company also cut FY26 consolidated revenue guidance to a lower 18%, down from an earlier 30% growth outlook. The company also lowered its profit outlook, reducing it from ₹400 crore to a range of ₹300–₹310 crore.
Industry Context
EMS and consumer durables in India face headwinds. Early monsoons hit AC demand. Consumer spending is soft. Input costs are high. All this adds pressure on margins. At the same time, AWS, PLI schemes, and competition continue to shape the sector’s outlook.
Technical Analysis Overview
Technically, the stock broke down from its recent range. Experts point to resistance in the ₹690–₹727 range and support levels near ₹545 and ₹508. These levels are key for any short-term price moves.
What’s Next for PG Electroplast?
The company remains committed to its long-term FY28 revenue goal of ₹90 billion, based on improved asset turns. Management plans include managing surplus inventory and easing cost pressure. Still, demand conditions and competition remain risks to watch.
Conclusion
PG Electroplast’s share price has sharply corrected. Nuvama’s 35% cut reflects caution amid soft demand, cost challenges, and high inventory. The stock now stands at a critical point technically. We’ll keep watching upcoming earnings and sector trends to see if a turnaround is possible.
FAQS:
PG Electroplast shares are falling because of weak quarterly results, lower growth guidance, high costs, and soft demand in the electronics market, making investors cautious about future earnings.
Right now, PG Electroplast may not look overvalued after the sharp drop. But valuation depends on future earnings growth, which has recently been revised lower by analysts.
PG could be risky to buy now due to weak guidance and market pressure. Some investors may wait for signs of stronger demand and better profits first.
Disclaimer:
This content is for informational purposes only and not financial advice. Always conduct your research.