PG Electroplast shares in a free fall, 'sell on rise' a good strategy?

Shares of PG Electroplast have tanked 36% in two sessions, pushing the stock in an oversold zone with a RSI of 20.6 on technical charts. PG Electroplast shares, which surged from Rs 150 in April 2024 to a record high of Rs 1054.95 on January 6, 2025, are down 52.75% from that high. The stock has witnessed more than half of that correction in just last two sessions. 

The multibagger stock is under bear attack as it is trading lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.

In the current session, PG Electroplast stock tanked 19.66% to Rs 473.20 against the previous close of Rs 589.05. Market cap of the firm slipped to Rs 14,368 crore. However, the stock rose 460% in three years and gained 10,723% in five years. 

The crash in the consumer electronics stock comes after the firm pared its growth guidance for FY26. PG Electroplast sees consolidated sales at Rs 5,700 crore to Rs 5,800 crore, which amounts to a growth of 17% to 19% from financial year 2025. 

However, during its March quarter earnings, the company guided for a revenue of Rs 6,345 crore, a 30.3% growth from financial year 2025. 

Analysts are bearish on the outlook of the stock. Drumil Vithlani, Technical Research Analyst at Bonanza Portfolio said, "PG Electroplast Ltd has decisively broken below the key Fibonacci 0.618 retracement level at Rs 503, accompanied by strong volume-based selling, signaling continued weakness in the broader trend. The stock is now trading well below both short- and long-term EMAs, reinforcing bearish momentum.  Traders are advised to refrain from initiating fresh long positions; any short-term bounce should be viewed as an opportunity to exit or initiate fresh shorts in line with the prevailing downtrend. Its Immediate Resistance lies at Rs 503 (0.618 retracement) and major resistance between Rs 508–Rs 514 zone (also aligns with 50% retracement and prior support). The stock's immediate support is at Rs 470."

SEBI registered Independent analyst Abhijeet says, "PG Electroplast stock price is bearish on the Daily charts & also oversold with next support at Rs 414. Investors should be buying only if Daily close is above resistance of Rs 548 could lead to a target of Rs 622 in the near term."

In the last quarter, PG Electroplast's net profit fell 21.4% to Rs 66.71 crore in Q1 against Rs 84.93 cr on a year-on-year basis. Revenue climbed 13.9% to Rs 1,503.85 crore in Q1 against Rs 1320.68 cr a year ago. EBITDA rose 3.6% to Rs 139.42 crore in Q1 against Rs 134.54 crore on a YoY basis. 

EBITDA margin came at 9.3% in the last quarter against 10.2% a year ago. The company said 1QFY26 was a challenging one for PGEL’s summer product portfolio, as early monsoons moderated growth.

PG Electroplast is an Electronic Manufacturing Services (EMS) provider for Original Equipment Manufacturers (OEMs) of consumer electronic products.