The shares of this leading recycling company gained up to 5 percent after the company plans to double the capacity of its plant by 12,000 TPA at the Warangal plant in Telangana.
Ganesha Ecosphere Ltd is a small-cap company with a market capitalization of Rs 1,811.51 crore. On Monday, The company shares were trading at Rs 857.95 a share, an increase of 3.39 percent from the previous stock price of Rs 829.85.
According to the company filing, Ganesh Enterprises Ltd announced the expansion of the production capacity of recycling plastic(rPET) by 12,000 tons per annum through its subsidiary Ganesha Ecopet Pvt Ltd.
rPET is a recycled PET (polyethylene terephthalate) plastic that is used to make packaging, such as plastic bottles and food containers.
Ganesha Ecosphere Ltd has an existing capacity of 12,000 tons per annum with utilization i s around 70 percent, The company planned to expand 12,000 tons per annum to increase the production capacity, with an investment of Rs 50 crore.
The project is expected to be completed before June 30, 2024, The mode of financing for the project is a combination of debt and equity.
Looking at the company’s financials, the company’s revenue increased quarter on quarter by 8.7 percent from Rs. 278,44 crore in Q1FY23 to Rs. 254,12 crore in Q2 FY23. Further, During the same period, net profit decreased by percent from Rs 344.87l crore to Rs 279.75 crore.
The company’s revenue decreased year on year by 11.7 percent from Rs 314.74 crores in FY 2022-23 to Rs. 281.68 crores in FY 2023-24. Further, During the same period, net profit decreased by 85.83 percent from Rs.19.69 crores to Rs. 2.79 crores.
The company reported an increase in the return ratios with the return on equity (ROE) increasing from 11.36 percent in FY 2021-22 to 11.47 percent in FY 2022-23.
As per the recent shareholding pattern, the company’s promoters own 42.31 percent, retail shareholders own a 36.23 percent stake, and foreign institutional investors own a 1.67 percent stake in the company.
Ganesha Ecosphere Ltd is a leading waste Recycling company in India and is engaged in the manufacturing of Recycled Polyester in India
Written by:- Abhishek Singh
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