PG Electroplast Sees 4% Dip — What Triggered the Fall?:-
Discuss some important companies and some important updates related to them,The first company. The name of the first company is PG Electropled. Disclaimer that all the company related news and updates that we will cover are only for learning and educational purposes. Do not consider this as any kind of investment advice. You can also do your own research and analysis. First of all about some important updates of PG Electroplast. About the last trading session, then you saw a huge decline in this company. Now, this huge fall that was witnessed, the number of fall was around 4%. So many people were also considering it a crash. Now let us see whether there is a decline of 4% , 3% or 2%. Decline is always going to happen but we should also know the reasons for the decline. So a lot of people were panicking yesterday.
What Does PG Electroplast Do? Understanding Its Business Model:-
What happened suddenly in PG Electroplast that we saw such a huge decline. The record of PG Electroplast for the last one and a half months or six months, then it is not like you saw the decline in the company only yesterday. If you look at the decline, it has been continuously seen in the company for the last 6 months and last 1 month. Now you can take multiple reasons for decline. In which one reason you can talk about is also the selling of the promoter of the company. Recently we witnessed a block deal in the company. The block deal in which the Government of Singapore and Motilal Oswal AMC purchased the shares of the company. Now, if someone has purchased in a block deal, then someone else must have sold it also. So the selling candidate here was none other than.About PG Group that it is a flagship company which works in multiple segments. Basically, if about Indian electronic manufacturing service provider, the company has diversified its portfolio to a great extent. In this the company manufactures many things. We get to see a lot of products. In this, you will get to see Rome Air Conditioner i.e. AC here. Apart from that you get to see a washing machine. Apart from that you get to see AC coolers.
Sector-Wide Pressure on EMS: Dixon and PG Electroplast in Focus:-
If we about product segments. Apart from that, the company is also seen manufacturing plastic modelling. The company is also seen manufacturing electronics. In 204, we saw 13% of the revenue generated by the company coming from this particular segment. Apart from that, there is another segment which we will call tool manufacturing segment.It is clearly understood that the company works in the EMS segment. Now if we work in EMS segment, then we can see another company in the same field whose name is Dicon Technology. Dixon Technology has shown very good growth in the last 1-3 years. We will see the same thing in PG Electroplast also. But what is the situation now is that if about Dicon Technology, we have heard a lot of negative commentary related to Dicon Technology, in which we have seen a negative commentary coming from Morgan Stanley as well, in which they had downgraded it and given it an underweight rating, due to which you saw Dicon Technology performing weakly last day. Now why are we seeing all these things because there is a that if we talk about EMS business, then competition is increasing in it, due to which the growth that will happen in all these companies in the future, we may not see it like before. Going forward, we may see growth slowing down.
Now according to the reports it has been mentioned that we will see a decline of 46% in EMS related earnings, if we about FI 25 to 27 and if we talk about 2030, from 27 to 30, then there we will see a further drop of 18%. So all these companies deal in this segment only, so we are talking about a proper sector and we are talking about slowdown in a proper sector. That is why you have seen its impact in multiple companies that belong to this sector. So hope you have understood the reason for the decline. But don’t consider all these things as any kind of recommendation.So you can take benefit of all these things. About the next company the name of the next company is BS.
BSE (Bombay Stock Exchange): Strong Growth, But Momentum Slowing:-
If about revenue, it has grown by 102% and the profit has grown by almost 189%. If about the quarterly results of the company, then in the first two quarters of the financial year 2025, the company had shown revenue growth of more than 100% on year-on-year basis. There was a growth of 125% in quarter two and if we talk about quarter one, we were seeing growth of more than 150% there. And if we talk about Q3 and Q4, the growth rate there was less than 100%. Before that, the company was seen reporting 100% growth for three back to back quarters. Now here the growth rate appears to be low but still we cannot say that these numbers are very bad. If we look at this number also, it is very good. But we can say that as per the earlier numbers that we were seeing from BSE , these are not that good. We can say this. Now there are reasons for this that if you look at the performance of the stock market at that time , it was not good. If we talk about the volumes of the derivatives market due to the new rules of SEBI, then we also saw it crashing. So there are multiple factors due to which we saw its impact on the company’s earnings. But recently ICICI Securities has published a report in which they have said that we have seen a rebound in the derivative volumes of NSC and BS.
Derivative Volumes Rebound: Positive Signs for Q1 FY26:-
That means a recovery has been seen in the months of April and May. And in the beginning of June, the situation seemed to be cooling down a bit because we also witnessed the conflict between Israel and Iran. Now if we exactly about the data, how has been the performance of BS. So about BS, then the second half of the financial year 2025, that is, quarter three and quarter four, if we compare the combined volume with the months of April and May, then in the months of April and May, we saw 52.8% more volumes than the periods of Q3 and Q4 combined. That is, we can say 3 months in Q3 and 3 months in Q4 3 + 3 6. So if we compare the volumes seen in 6 months with these 2 months, then the volume of these 2 months is 2.8% more as compared to 6 months. So the data that we saw was the data of BSE and if about NSC, then the numbers of NSC are also not that bad. If we compare that also, we saw 5% more.
Valuation Check: BSE Near 52-Week High:-
If we compare it with the second half of last year. So, it is clearly visible that if the company has got higher volumes, then ultimately whatever we expect from quarter one, it will be better and we cannot expect more, brother, there is still time for the results to come and when the results come, then you will see for yourself that on the basis of all this data, the expectations of the market from the earnings of this company may reach a much higher next level in which the expectations in quarter one can be much higher than the revenue, profit and margin and even now if you see, the company is not very much below its 52-week high, mean it is around the same range, so if we look at the valuation of the company, it is not cheap. If we look at the valuation, it is seen to be around its previous high. So, if we look at the expectations as per the current valuation, they may be higher.Now apart from this, all these things which we have covered, this data which we have talked about, it is not only this that BSE is going to be happy with this data.
CDSL: Mixed Performance, But Volumes May Turn the Tide:-
CDSL is also going to be happy with this data. Because CDSL needs volumes. Volumes will be available whether it is in NSC or BS. Ultimately a company like CDSL will make money. And if we talk about CDSL’s numbers, we have seen very disappointing numbers in the last two quarters on year on year basis. In which, on year on year basis, the company showed a growth of 29% in quarter three and reported degrowth in quarter four. So 29% is also disappointing because the valuation of the company at that time, as per that valuation, the growth rate of 29% is not that impressive and if you look at the growth rate before that, look here, there was an expansive valuation of the company but even then the valuation was continuously getting justified because the company was showing tremendous growth and right now the valuation could not be justified because we did not get to see the growth rate of the company like before but right now in the months of April and May, we have seen a sharp jump in the volumes of NSE and BSE. So we can expect that many companies may benefit from this in the coming quarters. Mainly those companies which are related to the capital market.
Bamco Hydraulics Announces Bonus & Stock Split:-
The broker may also benefit. The depository may also benefit. So keep this thing in mind. If you analyze the business. But yes, don’t take all these things as recommendations. All things are just for learning that how we analyze the business. If we are looking at capital market companies. Now apart from this, friends, let’s talk about the next company which has recently announced bonus in the ratio of 1:1 and stock split in the ratio of 1:10. The name of the company is Bamco Hydraulics. So if you are a shareholder of this company then this news can definitely be important for you. If you are not a shareholder, you can ignore it.