The waste management sector in India is a critical and evolving industry, driven by rapid urbanization, population growth, and increasing environmental awareness. As the country generates approximately 62 million tonnes of waste annually, effective waste management has become essential for sustainable development.
Listed below is one such waste management stock in India:
With a market capitalization of 3,980 crores, the shares of Ganesha Ecosphere started Thursday’s trading session on a higher note at Rs. 1,609 compared to its previous close of Rs. 1,599.90. During the trading session, the shares hit a low of Rs. 1,538.45, losing around 2 percent and closed the day at Rs. 1,585 apiece.
Financials:
Coming onto the company’s financial statements, the revenue increased by around 7 percent from Rs. 285 crores during the December quarter to Rs. 306 crores in the March quarter. In addition, the net profits surged by around 69 percent from Rs. 13 crores to Rs. 22 crores during the same period.
Comparing the same metrics on a YoY basis, the revenue increased marginally by around 1.32 percent from Rs. 302 crores during Q4FY23 to Rs. 306 crores in Q4FY24. On the other hand, the net profits zoomed by around 47 percent from Rs. 15 crores to Rs. 22 crores during the same timeframe.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 3.85 percent and a return on capital employed (RoCE) of 7.07 percent for the period spanning FY23-24. Further, the net profit margin stood at 3.61 percent during the same period.
About the Company:
The company is one of the leading players in the PET plastic recycling space in India with a total installed capacity of 156,440 tons across products like RPSF, rPET granules, rPET filament yarn, Spun Yarn, dyed filament yarn and PPSF.
Ganesha Ecosphere is the largest PET bottle recycling company in India, contributing to recycling over 16 percent of India’s PET bottle waste.
Ganesha Ecosphere operates six manufacturing units located in different regions of India, including Kanpur (Uttar Pradesh), Rudrapur (Uttarakhand), and Bilaspur, Rampur. These facilities are equipped with advanced technology to ensure efficient production processes and high-quality output.
The company aims to capture a 25 percent market share in rPET granules and targets a revenue of Rs. 1,800 to 2,000 crores once fully operational. Furthermore, it foresees achieving EBITDA margins within the range of 15 percent to 16 percent during FY25.
Additionally, subsidies are anticipated to enhance financial performance throughout the fiscal year. The company also aims to capture 25 percent to 30 percent of the market share over the next 5 to 6 years.
Ganesha Ecosphere continues to explore opportunities for expansion and enhancement of its recycling capabilities. The company is likely to focus on increasing its production capacity and diversifying its product range to meet the evolving demands of the market.
In summary, Ganesha Ecosphere Ltd. stands out as a key player in the rPET industry in India, with a strong focus on sustainability, innovation, and operational excellence.
Written By Vaibhav Patil
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