PG Electroplast shares extended their decline for the 11th consecutive session on Wednesday, January 11, falling 3% and marking the longest losing streak in the company's trading history. The stock has been under pressure since January 5, when it closed at ₹630.00 after gaining for four straight days.

Stock Performance Analysis

The current losing streak represents a significant reversal for PG Electroplast shares, which have given up all previous gains accumulated during the early January rally. The stock's performance during this period shows the volatility that has characterized recent trading sessions.

Retail Investor Stake Reduction

Small retail shareholders, defined as those with authorized share capital up to ₹2.00 lakh, reduced their holdings in PG Electroplast during the December quarter according to the latest shareholding pattern filed on BSE. This marks the first instance of retail stake reduction since December 2024.

Mutual Fund Participation Increases

Contrary to retail investor behavior, mutual funds significantly increased their stake in PG Electroplast during the same period. The institutional participation rose from 14.48% in the September quarter to 18.68% in the December quarter, representing a substantial 4.20 percentage point increase.

Key Mutual Fund Holdings

Several prominent mutual funds have established significant positions in the company:

Current Market Position

Despite the prolonged decline, PG Electroplast shares showed some resilience during Wednesday's trading session, recovering from intraday lows. The stock currently trades at ₹539.80, down 2.2% from the day's lowest levels. The company had delivered a 14% gain during the October-December period before the current correction began.

The contrasting investor behavior between retail and institutional participants highlights different risk appetites and investment strategies, with mutual funds increasing exposure while individual investors reduced their positions during the December quarter.

PG Electroplast , a leading electronics manufacturing services (EMS) company, has formally challenged an article published by HDFC Securities on December 5, 2025, which raised concerns about the company's financial health. PG Electroplast has labeled the statements in the article as factually inaccurate and unsubstantiated, emphasizing its strong financial position and positive outlook.

Key Points of Contention

1. Net Cash Position: PG Electroplast asserts that it is a net cash company, with cash levels exceeding its debt for the past 12 months.
2. Financial Performance: The company maintains its guidance of ₹5,700.00-5,800.00 crores in sales and ₹300.00-310.00 crores in profits for the current financial year.
3. Liquidity and Leverage: PG Electroplast claims to have one of the best leverage and liquidity ratios in the sector.

Balance Sheet Analysis

To substantiate PG Electroplast's claims, let's examine key financial metrics from their balance sheet:

The balance sheet data shows significant year-over-year growth across key financial indicators, potentially supporting PG Electroplast's stance on its financial health.

Company's Response

PG Electroplast has taken the following actions:

1. Requested HDFC Securities to review and correct the article within 7 working days.
2. Asked for a published clarification acknowledging any errors.
3. Reserved the right to escalate the matter to SEBI and pursue legal recourse if necessary.

Implications for Investors

This dispute highlights the importance of thorough financial analysis and the potential impact of published financial reports on a company's reputation and market perception. Investors are advised to:

1. Review official financial statements and company disclosures.
2. Consider multiple sources of analysis before making investment decisions.
3. Stay updated on any further clarifications or corrections from both PG Electroplast and HDFC Securities.

As the situation develops, market participants will be watching closely for any updates or resolutions to this disagreement between PG Electroplast and HDFC Securities.