New Delhi, Dec. 5 -- After four years of blistering growth, PG Electroplast Ltd seems to be moving past its phase as a small-cap dream stock.

Between FY21 and FY25, the company's operating revenue jumped from Rs.703 crore to nearly Rs.4,870 crore-a growth of more than 62% a year. Profit expanded even faster at over 120% compound annual growth rate (CAGR). The stock reflected this frenzy, rising almost 72 times between January 2021 and January 2025 to hit a peak of Rs.1,054.

That momentum has since faltered. In under a year, the stock has fallen nearly 45% from its highs. To understand the reversal, it's worth unpacking the business at the centre of the rally.

Deep integration bet

PG Electroplast designs and manufactures room air-condi...