Long-term investors saw an opportunity for some bottom fishing as valuations have moderated from their peak.
The company revised its FY26 revenue growth guidance to 17–19%, down from 30.3%, and slashed its net profit target to Rs 300–310 crore from an earlier estimate of Rs 405 crore. It also trimmed its full-year capital expenditure plan to Rs 700–750 crore from Rs 800–900 crore.
During its Q1 earnings call, management cited high inventory build-up as a key challenge, noting that several contract manufacturers have slowed production. Seasonal factors also weighed on performance, with the early arrival of the monsoon dampening demand for air conditioners. While April recorded robust AC sales growth of 70% year-on-year, the June–July period saw a sharp reversal, with 70% of orders cancelled.
The downbeat guidance came alongside Q1 results showing a 21% drop in net profit to Rs 67 crore, despite a 14% rise in revenue.
Also Read | PG Electroplast share price tanks another 15%. Nuvama cuts target prices, analysts warn of more downsideSunny Agrawal, Head – Fundamental Research at SBI Securities, said that, besides the guidance cut, investors viewed promoter selling as a breach of trust, triggering a sharp reaction in the stock. “Now we know that FY26 is going to be a muted year. And on a low base, we can see growth in FY27. It is better to wait rather than attempt bottom-fishing now. Within the EMS space, we see Amber as relatively better. In two years, its profit will more than double. Investors can use the current dip to buy Amber. We also like Syrma SGS as it has a relatively cheaper valuation,” he told ET Markets.From a technical perspective, Om Ghawalkar, Market Analyst at Share.Market, noted that the stock was trading well above its 200-day moving average, which is near Rs 400. A decline below this level, he said, would confirm a long-term downtrend.“PG Electroplast is facing weak momentum and appears expensive relative to its fundamentals. Despite this, the company scores high on quality, reflecting strong underlying fundamentals. However, high volatility and cautious sentiment suggest that investors remain wary in the near term,” Ghawalkar added.
On Monday, Nuvama reduced its FY27 growth estimate by 25% on lower RAC growth and margin assumptions and cut its target price for the stock from Rs 1,100 to Rs 710.