PG Electroplast shares gain for fourth straight session, here is why stock is rising

The stock drew strong buying interest after Prime Minister Narendra Modi announced the rationalisation of goods and services tax (GST) slabs from the ramparts of Red Fort on Independence Day. Analysts say that PG Electroplast would be a key beneficiary of lower GST rates, as most of the products it makes carry a higher GST rate of 28%, which is likely to come down to 18%.

Prime Minister Narendra Modi on Sunday clarified that the centre has circulated the draft of the next-generation GST reforms among states and sought their cooperation to implement the proposal before Diwali.

PM Modi had announced the proposal to reform the GST law in his Independence Day speech.

As per reports, the central government has proposed two tax rates of 5% and 18% in the revamped GST, which is likely to replace the current indirect tax regime by Diwali this year, highly placed sources told news agency Press Trust of India (PTI).

The centre has sent its proposal, which removes 12% and 28% slabs, to the panel of state finance ministers on GST rate rationalisation. They will now discuss it and place it before the GST Council. The council is expected to meet next month.

Meanwhile, PG Electroplast shares came out of the futures and options (F&O) ban, which further supported the up move in the stock. PG Electroplast coming out of the F&O ban means that fresh positions can be made in PG Electroplast shares. A stock enters the F&O ban list when its market-wide position limit crosses 80%.

PG Electroplast stock last week came under intense selling pressure after it sharply lowered its profit and revenue growth guidance for the current financial year.

PG Electroplast expects revenue to be in the range of ₹5,700–5,800 crore, implying a growth of 17% to 19%; the company had earlier guided for revenue growth of 30%.

The company also lowered its profit growth guidance to ₹300–310 crore, marking a growth of 3%–7% against its earlier guidance of 39%.

Product business (washing machines, room ACs, coolers) is expected to grow at 17%–21%, against its earlier guidance of 35%.

PG Electroplast reported a consolidated net profit of ₹67 crore in the first quarter of the current financial year (Q1FY26), marking a decline of 20% from ₹84 crore in the same period last year.

Godrej, Blue Star, Bajaj Electricals, Croma, Acer, Voltas, Whirlpool, Daikin, Foxconn, Hyundai, Jaquar, Honeywell and LG Electronics are some of the prominent clients of the company.

As of 10:16 am, PG Electroplast shares traded 4.44% higher at ₹564.65, outperforming the BSE500 index, which was up 0.14%.