Shares of PG Electroplast surged 6% on January 7 as investors cheered reliable quarterly data. Shares of the company were up 4% at Rs 1,172.35 at 12:33 pm on the BSE.

The stock has delivered solid returns over the past year. The stock has gained 56% in the past year and 1,657% in the past three years.

The company posted net sales of Rs 457.89 crore in the December quarter, up 74.77% from Rs 262 crore a year ago, while net profit in the reported quarter stood at Rs 13.74 crore, up 148.03% from Rs 5.54 crore in the same period last year.

Its operating margin widened to 7.76% in the December quarter from 5.84% in the previous quarter and 6.57% a year ago. This was mainly due to lower raw material costs, cost control and operating leverage.

PG Electroplast has raised its sales guidance to at least Rs 2,000 crore, up 82% from FY22, on the back of successful significant expansion across all business segments.

The company’s managing director, Vikas Gupta, said the potential revenue for FY24 could range from Rs 2,500 crore to Rs 3,000 crore.

Gupta added that PG Electroplast is looking for significant growth in its product business from Rs 1,200 crore to Rs 1,500 crore in FY24.

The company’s revenue has more than quadrupled in six years from Rs 2.63 crore in 2015-16 to Rs 1,098 crore in 2021-22 at a CAGR of 27%, and EBITDA increased at a compound annual rate of 28%. Over the past six years, the company has accumulated capital expenditure of close to Rs 400 crore.

Specialising in Original Design Manufacturing (ODM), Original Equipment Manufacturing (OEM) and Plastic Injection Molding, the company serves more than 50 leading Indian and global brands.