Transforming ₹1 Lakh into ₹1.8 Crore: The Unbelievable Journey of Two Stocks
Imagine putting ₹1 lakh into a company and seeing that investment grow to over ₹1.8 crore in just five years. This kind of wealth creation is rare, and when it happens, it’s often fueled by a powerful mix of strategic vision, sectoral growth, and operational excellence. Two Indian companies— PG Electroplast and Transformers & Rectifiers—have recently turned heads with their exceptional stock performance. Here’s how they did it and what the future might hold.
PG Electroplast: Riding the EMS Wave with Precision
Founded in 2003, PG Electroplast has carved a niche for itself in the Electronic Manufacturing Services (EMS) space. The company produces plastic components and printed circuit boards and is deeply embedded in consumer electronics, automotive parts, and home appliances.
What sets PG Electroplast apart is its vertical integration across four business segments. The “product” vertical—comprising air conditioners, washing machines, and air coolers—contributed a commanding 61% to the company’s total revenue in FY24. Plastic moulding and consumer electronics made up the remaining share.
Its client list includes big names like LG, Carrier, Whirlpool, Acer, and Voltas—testament to its credibility in the OEM landscape.
Thanks to the Make in India initiative and the global China+1 manufacturing strategy, PG Electroplast has benefited from increased local demand and policy support. Revenue from its product business has skyrocketed 11x since FY20, growing at a staggering CAGR of 83%. In FY24 alone, it earned ₹16.7 billion from this segment, with 79% of that coming from room air conditioners.
Strong Financials Back the Growth Story
The total revenue of PG Electroplast increased at a CAGR of 44%, from ₹6.4 billion in FY20 to ₹27.5 billion in FY24. In the same time frame, its net profit increased from ₹26 million to ₹1.37 billion, an exponential growth.
The company’s return on equity (ROE) increased from 1.5% to 19%, and its EBITDA margin increased from 6.3% in FY20 to 10% in FY24. In line with this, return on capital employed (ROCE) increased from 7.5% to 21.6%.
Revenue increased 77% year over year to ₹29.6 billion in the first nine months of FY25, while net profit increased 121% to ₹1.4 billion. Additionally, the margin increased by four basis points.
Looking forward, the company plans to expand washing machine capacity and enter new areas like television manufacturing and RAC compressors. Its second air conditioner plant is nearing completion, and internal use of 60–70% of production could further lift margins.
However, investors should be aware that the stock trades at a high P/E ratio of 114x—more than double its 10-year median of 53. While it aligns with peers like Kaynes (120x) and Dixon (126x), valuation remains a concern.
Transformers & Rectifiers: Powering India’s Energy Needs
Transformers & Rectifiers, another multi bagger, is among India’s top domestic transformer makers. With three major units in Gujarat, the company has a capacity of 33,200 MVA and operates across various transformer categories—power, distribution, furnace, rectifier, and shunt reactors.
Its stellar rise has been aided by booming infrastructure, rising global power demand, and increased government spending. In FY25, the company clocked ₹19.9 billion in revenue, up from ₹7.3 billion in FY21—a CAGR of 28.5%.
Margins improved from 10% to 16%, while net profit surged to an all-time high of ₹1.8 billion. Profit has grown at a CAGR of 127.4% over the past four years, showing the power of operating leverage.
Big Plans for the Future
To fuel its next growth phase, the company raised ₹5 billion via a QIP and is investing ₹5.5 billion to expand capacity. It plans to add 15,000 MVA by May 2025 and another 22,000 MVA of high-voltage transformer capacity by February 2026.
The company is also stepping into the renewable energy space, focusing on exports and internal process optimization to stay competitive.
It trades at a P/E of 74x, higher than its 10-year median of 32, reflecting strong investor confidence. However, this puts it at a premium compared to ABB (57x) and a slight discount to CG Power (90x).
Final Thoughts : High Growth, High Valuations—Tread Wisely
PG Electroplast and Transformers & Rectifiers have created phenomenal wealth over the past five years, transforming modest investments into crores. Their growth has been driven by a combination of strategic positioning, industry momentum, and operational efficiency.
However, current valuations are significantly above historical averages, signalling that much of the optimism is already baked into the price. Investors should monitor earnings growth and execution carefully, as any slowdown could impact stock prices sharply.
As always, these tales serve as a reminder of the dangers associated with chasing high-growth, high-valuation stocks, even though they are inspirational. Thorough research, diversification, and caution are still crucial.
The image added is for representation purposes only