With a market cap of Rs. 539.78 crore, shares of a fast-growing private enterprise in the renewable energy sector moved up by nearly 4.4 percent at Rs. 226.85 in the morning trading session on Monday compared to its previous close of Rs. 217.30 after the company announced a land acquisition.
According to the recent filings on NSE, the company’s Board of Directors approved the proposal of investment into Shantol Recycling Private Limited, a wholly-owned subsidiary company of Hi-Green Carbon Ltd.
Shantol Recycling Private Ltd. is planning to establish a 100 TPD waste recycling plant in Hatod, Madhya Pradesh, to produce Recovered Carbon Black (rCB) and fuel oil. The subsidiary company plans to raise long-term funds by issuing equity shares to meet the capital expenditure.
Hi-Green Carbon Ltd., the holding company, will invest up to Rs. 5 crore to acquire 38,057 square meters of land, allotted by the Madhya Pradesh Industrial Development Corporation (MPIDC). This new plant in Hatod, Madhya Pradesh, will be the third plant under the control of the holding company.
The company already operates a successful 100 TPD waste recycling plant in Bhilwara, Rajasthan, and is developing a second plant in Maharashtra’s Dhule District.
In terms of financials, the revenue from operations of Hi-Green Carbon Ltd. decreased by 25 percent from Rs. 44 crore in Q2 FY22-23 to Rs. 33 crore in Q2 FY23-24, accompanied by a decrease in net profit by 16.6 percent to Rs. 5 crore in Q2 FY23-24 from Rs. 6 crore in Q2 FY22-23.
As of December 2023, FIIs hold 6.4 percent of the shares, whereas DIIs hold 0.27 percent of the shares in the company, aggregating to 6.67 percent of the institutional holdings. The Promoters’ holdings remain unchanged at 71.83 percent since Q2 FY23-24.
Hi-Green Carbon Ltd., a venture of the Radhe Group of Energy, specialises in processing waste hydrocarbons to produce valuable products like rCB (Recovered Carbon Black).
The company operates one of the largest patented 100 TPD continuous processing plants in the world, located at Bhilwara, Rajasthan for over the last 7 years.
Written by Shivani Singh
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