PG Electroplast shares rise for 3rd day; should you buy, hold or sell?
PGEL shares: Nuvama Institutional Equities has cut its FY26 earnings estimate by 14 per cent and FY27 by 1 per cent to reflect the weak Q4 and modest margin impact in FY27 due to substitute fuel.
- Mar 18, 2026,
- Updated Mar 18, 2026 3:56 PM IST
PG Electroplast Ltd (PGEL), whose shares are down 40 per cent in the past one year, climbed for the third straight session on Wednesday, even as analysts see a weak set of March quarter results ahead.
PGEL shares had been under pressure after the company informed exchanges about a shortage of gas under the existing gas sale and purchase agreement on account of the ongoing conflict in the West Asia. This resulted in a partial shutdown of PGEL’s Supa facility, while the north facility continued to operate at healthy levels.
PGEL is evaluating substitutes, including oxy-acetylene, and is awaiting customers’ approval. Nuvama Institutional Equities has cut its FY26 earnings estimate by 14 per cent and FY27 by 1 per cent to reflect the weak Q4 and modest margin impact in FY27 due to substitute fuel.
It maintained ‘Buy’ with a revised March target price of Rs 780 (earlier Rs 800), basis 45x FY28E EPS. On Wednesday, the stock rose 2.02 per cent to close at Rs 534.10. The scrip gained 3.25 per cent on Tuesday and 1.03 per cent on Monday.
"Once approved, PGEL could restart its operations. This is expected to have a large impact on PGEL’s Q4 performance (lower volumes and elevated plant costs) while a part of the volumes would come back in Q1FY27E as brands would replenish inventory," Nuvama said.
Nuvama cited LPG disruptions impacting many companies such as Bosch Home Solutions and E-Pack Durables. Companies located in Maharashtra have seen material reduction in supplies, it said adding that NG supplies too are already being cut by 20 per cent with effect from March 9, 2026.
Most players, it said, have indicated their ability to manage production for the next one–two weeks, post which it might be difficult to operate at full utilisation.
"We believe the demand-supply scenario is reasonably balanced (from a 2026 season perspective) with the brands and channel put together holding 10–12 weeks of inventory. Though LPG disruption beyond two weeks from now can impact the season as it takes typically two–four weeks for products to reach retail touchpoints," it said.
Nuvama said the brands are unlikely to see a material impact in Q4FY26, while Q1FY27 performance would depend on the season’s performance, cost inflation, and availability. Players do not rule out potential supply shortage if the LPG shortage and ongoing Middle East conflict persist for over two weeks from now, it said.
PG Electroplast Ltd (PGEL), whose shares are down 40 per cent in the past one year, climbed for the third straight session on Wednesday, even as analysts see a weak set of March quarter results ahead.
PGEL shares had been under pressure after the company informed exchanges about a shortage of gas under the existing gas sale and purchase agreement on account of the ongoing conflict in the West Asia. This resulted in a partial shutdown of PGEL’s Supa facility, while the north facility continued to operate at healthy levels.
PGEL is evaluating substitutes, including oxy-acetylene, and is awaiting customers’ approval. Nuvama Institutional Equities has cut its FY26 earnings estimate by 14 per cent and FY27 by 1 per cent to reflect the weak Q4 and modest margin impact in FY27 due to substitute fuel.
It maintained ‘Buy’ with a revised March target price of Rs 780 (earlier Rs 800), basis 45x FY28E EPS. On Wednesday, the stock rose 2.02 per cent to close at Rs 534.10. The scrip gained 3.25 per cent on Tuesday and 1.03 per cent on Monday.
"Once approved, PGEL could restart its operations. This is expected to have a large impact on PGEL’s Q4 performance (lower volumes and elevated plant costs) while a part of the volumes would come back in Q1FY27E as brands would replenish inventory," Nuvama said.
Nuvama cited LPG disruptions impacting many companies such as Bosch Home Solutions and E-Pack Durables. Companies located in Maharashtra have seen material reduction in supplies, it said adding that NG supplies too are already being cut by 20 per cent with effect from March 9, 2026.
Most players, it said, have indicated their ability to manage production for the next one–two weeks, post which it might be difficult to operate at full utilisation.
"We believe the demand-supply scenario is reasonably balanced (from a 2026 season perspective) with the brands and channel put together holding 10–12 weeks of inventory. Though LPG disruption beyond two weeks from now can impact the season as it takes typically two–four weeks for products to reach retail touchpoints," it said.
Nuvama said the brands are unlikely to see a material impact in Q4FY26, while Q1FY27 performance would depend on the season’s performance, cost inflation, and availability. Players do not rule out potential supply shortage if the LPG shortage and ongoing Middle East conflict persist for over two weeks from now, it said.