PG Electroplast Receives 'Buy' Rating from MarketsMOJO, Shows Strong Growth Potential

PG Electroplast, a midcap company in the consumer durables - electronics industry, has recently received a 'Buy' rating from MarketsMOJO. This upgrade is based on the company's healthy long-term growth, with an annual growth rate of 50.47% in Net Sales and 90.06% in Operating profit. In fact, the company has declared positive results for the last 10 consecutive quarters, with a Net Profit growth of 151.2% in June 2024.
The company's ROCE (HY) is at a high of 15.49%, and its NET SALES (Q) and PBDIT (Q) are also at their highest levels at Rs 1,320.68 cr and Rs 130.62 cr, respectively. Technically, the stock is in a bullish range and has shown improvement from a mildly bullish trend on 09-Oct-24. Multiple factors, such as MACD, Bollinger Band, KST, and OBV, indicate a bullish outlook for the stock.

PG Electroplast has consistently generated strong returns over the last 3 years, outperforming the BSE 500 index in each of the last 3 annual periods. However, there are some risks associated with the stock. With a ROCE of 16.7, the company has a very expensive valuation, with an Enterprise value to Capital Employed ratio of 12.7. Additionally, the stock is currently trading at a premium compared to its average historical valuations. While the stock has generated a return of 230.09% in the past year, its profits have only risen by 94.7%, resulting in a PEG ratio of 1.3.

Overall, PG Electroplast shows strong potential for growth and has consistently delivered positive results. However, investors should carefully consider the risks associated with the stock before making any investment decisions.