Small-Cap Multibagger Alert: 3,900% Returns in 3 Years with New Joint Venture

PG Electroplast Limited, a prominent entity within the PG Group, holds a significant position in the Electronics Manufacturing Services (EMS) sector in India. As a versatile EMS provider, it offers comprehensive Original Equipment Manufacturing (OEM) and Original Design Manufacturing (ODM) solutions for complete product and component manufacturing. 

PG Electroplast Limited (PGEL) and Jaina Group have entered into a Joint Venture Agreement with Jaina Marketing & Associates (JMA), Jaina India Private Limited (Jaina India), and Goodworth Electronics Private Limited (Goodworth). The purpose of this agreement is to establish a Joint Venture (JV) Company focused on manufacturing LED Televisions, leveraging the expertise and resources of both parties. The JV will have a 50-50 equity shareholding between PGEL and JMA, and each will nominate three directors responsible for managing the JV Company.

The agreement includes provisions for capital contributions, decision-making processes and tag-along rights for the sale of shares. PGEL and Jaina Group are not related parties, and the transaction does not fall under related party transactions. The issuance of shares will be determined as per the JV Agreement, and the nominated directors will oversee the JV Company's operations. 

Furthermore, the company reported stellar Q4FY23 results in which sales of the company surged by 61% to Rs 828 crore while the operating profit of the company grew by 52% to Rs 76 crore. Similarly, net profit of the company surged by 42% to Rs 40 crore. 

The company has delivered returns of 75% over the past year and returns of 3,926% over the past 3 years. Additionally, the company has a ROCE of 17.3% and a ROE of 21.9%. 

On Friday, shares of the company surged by more than 3% and made an intraday high of Rs 1,629.95. Additionally, the company has a ROCE of 17.3% and a ROE of 21.9%. 

Investors should keep a close eye on this trending stock.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.