During Thursday’s trading session, the shares of one of the leading PET plastic recycling companies surged 8 percent to Rs. 1,906.6 on BSE, after the company entered into a Joint Venture (JV) Agreement with Race Eco Chain Limited.
With a market capitalization of Rs. 4,695.8 crores, at 11:41 a.m., the shares of Ganesha Ecosphere Limited were trading in the green at Rs. 1,852.6, up by nearly 4.93 percent, as against its previous closing price of Rs. 1,765.5.
What’s the News:
In the recent meeting held on September 4th, the Board of Ganesha Ecosphere approved the incorporation of a new Joint Venture company in collaboration with Race Eco Chain Limited. The joint venture, named Ganesha Recycling Chain Private Limited, will focus on establishing washing plants to produce PET flakes.
This initiative is part of Ganesha Ecosphere’s strategic investment to enhance its raw material supply chain of PET waste. Once incorporated, Ganesha Recycling Chain Private Limited will be an associate of Ganesha Ecosphere.
Race Eco Chain Limited is a listed micro-cap company engaged in the business of collection and supply of recyclable waste to recyclers, along with manufacturing recycled products.
As part of its strategy to strengthen its raw material supply chain of PET waste, Race Eco Chain has agreed to subscribe up to 4.55 lakh equity shares of Rs. 10 each in the new JV for cash, at a consideration of nearly Rs. 16 crores.
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As per the filings, under this agreement, Ganesha Ecosphere will hold up to a 49 percent stake in the JV, while Race Eco Chain will hold up to a 51 percent stake.
Financials:
The company experienced significant growth in its revenue from operations, showing a year-on-year rise of around 32.7 percent from Rs. 254 crores in Q1 FY24 to Rs. 337 crores in Q1 FY25.
Similarly, its net profit increased during the same period from Rs. 3 crores to Rs. 23 crores, indicating a rise of nearly 666.7 percent YoY.
On a year-on-year basis, the Earnings Before Interest, Taxes, Depreciation, and Amortisation, or EBITDA increased from Rs. 25.5 crores in Q1 FY24 to Rs. 47.7 crores in Q1 FY25, registering a growth of 87 percent.
Stock Performance
Shares of Ganesha Ecosphere have delivered positive returns of nearly 71.7 percent in one year as well as around 79 percent in the last six months. So far in 2024, the stock has given about 90 percent of positive returns.
About the Company:
Incorporated in 1987, Ganesha Ecosphere Limited is engaged in the business of manufacturing Recycled Polyester Staple Fiber (RPSF), dyed texturised yarn and recycled spun yarn and recently ventured into rPET chips and rPET filament yarn.
Written by Shivani Singh
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