The stock market was buzzing today as shares of PG Electroplast jumped over 5% following the announcement of a new manufacturing deal with Whirlpool India. The agreement, which focuses on the production of semi-automatic washing machines, sparked investor interest and reflected positively on both companies’ stocks.
Let’s break down what’s happening and why investors are paying attention.
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What’s behind the surge in PG Electroplast and Whirlpool India?
On December 24, 2024, PG Electroplast Ltd. announced that it had signed a definitive agreement with Whirlpool of India Ltd. to manufacture select models of Whirlpool-branded semi-automatic washing machines. Production will take place at PG Electroplast’s Roorkee factory in Uttarakhand.
This deal further strengthens the relationship between the two companies, as PG Electroplast already manufactures air conditioners (ACs) for Whirlpool.
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Stock Performance Today (NSE):
- PG Electroplast: Rose 5.4% to hit an intraday high of ₹1,002, before settling at ₹978 (up 2.86%).
- Whirlpool India: Climbed 3.6% to an intraday high of ₹1,918.5, later trading at ₹1,876 (up 1.36%).
Why does this deal matter?
The deal aligns with Whirlpool India’s commitment to ‘Make in India’, boosting domestic manufacturing while tapping into PG Electroplast’s capabilities. This collaboration enhances Whirlpool’s production capacity and streamlines supply chains, offering better control over costs and quality.
Key Statements from Leadership:
- Vikas Gupta, MD (Operations), PG Electroplast:
“We are pleased to deepen our relationship with Whirlpool and unlock new growth opportunities.” - Narasimhan Eswar, MD, Whirlpool of India:
“This deal reaffirms our focus on ‘Make in India’ and ensures high-quality products at affordable prices.”
Whirlpool’s broader stock performance – Is Bosch making a move?
Whirlpool India’s stock has been in the spotlight not just because of the PG Electroplast deal. Recently, reports surfaced suggesting that Bosch is considering a bid for Whirlpool’s global appliance business.
This speculation drove Whirlpool’s stock to a 52-week high of ₹2,190.05 – a massive 19.23% surge – before closing at ₹1,990.70 (up 8.37%).
- BSE sought clarification from Whirlpool regarding these reports.
- If Bosch proceeds with the bid, the combined market share of Bosch and Whirlpool could hit 19-20% in the Indian consumer durables space, strengthening their market position against competitors like Adani.
Market Indicators of whirlpool:
- Volume: 73,000 shares traded (vs. 18,000 average).
- Market Cap: ₹25,256.38 crore.
- P/E Ratio: 150.90.
- EPS: 13.19.
- Return on Equity: 5.19%.
Whirlpool outperforms the market – hitting new highs
On October 22, 2024, Whirlpool India’s stock hit a 52-week high of ₹2,450, outperforming the sector and the Sensex.
- 1-Year Performance: Whirlpool India up 45.06%, compared to Sensex’s 24.05% rise.
- Sector Outperformance: Whirlpool beat the consumer durables sector by 1.41% over two days, gaining 2.04%.
PG Electroplast’s strong 2024 performance
PG Electroplast isn’t far behind. The company’s stock has surged 312% in 2024, driven by steady demand and strategic partnerships like the one with Whirlpool.
- Focus Areas:
- Air Conditioners (ACs).
- Washing Machines.
- Air Coolers.
- LED TVs.
PG Electroplast has positioned itself as a key player in Electronic Manufacturing Services (EMS) and Original Design Manufacturing (ODM) for major consumer brands.
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What does this mean for investors?
The Whirlpool-PG Electroplast deal indicates growing demand in India’s consumer durables space and underscores Whirlpool’s commitment to expanding local manufacturing.
Why this matters:
- Whirlpool’s focus on domestic production could reduce costs, improve margins, and strengthen its competitive position.
- PG Electroplast’s role as a manufacturing partner opens opportunities for more contracts, driving revenue growth.
The road ahead for Whirlpool India and PG Electroplast
As Whirlpool expands its footprint in India and PG Electroplast continues diversifying, investors can expect continued growth. With India’s consumer durable market set to grow, these partnerships reflect strong potential for long-term gains.
For investors looking at consumer electronics stocks, this deal highlights the value of tracking partnerships, market expansion efforts, and domestic production strategies.
