The shares of AGI Greenpac, a packaging Products Company, opened at Rs 326.95, a gap up of 7 percent against its previous close of Rs 305.70. It further gained 4 percent to an intra-day high of Rs 340 in the early hours of Monday. he shares shined on strong Q3 numbers.
AGI Greenpac Limited (formerly known as HSIL) is one of India’s leading Packaging Products companies that manufactures and markets various packaging products, including glass containers and Polyethylene Terephthalate (PET) bottles, products & security caps, and closures.
In the third quarter of FY23, the company reported a revenue of operations that stood at Rs 567 crores, which is a growth of 43 percent Year on Year (YoY) from Rs 396 Crores. In the previous quarter, their revenue stood at Rs 515 Crores.
Their net profit in the period was Rs 53 crore, which is a growth of 81 percent Year on Year (YoY) from Rs 29 Crore and a 61 percent growth Quarter on Quarter (QoQ) from Rs 34 Crore.
The sales and profitability improved on a Y-o-Y basis on account of an improved product mix, and an increase in demand from the non-alcoholic beverages, packed food, and beer segment for the glass containers products.
The company has a manufacturing capacity of 1,754 Tonnes Per Day. In addition to that, it has diversified marquee institutional clients which include names like Abbott, Northern Spirits, Dabur India, Dr. Reddy’s, Glenmark, Hindustan Unilever Limited, and Sun Pharma among others.
The shares of the company have been volatile and gained approximately 19 percent in the last six months. In a longer time period, the scrip has delivered a multibagger return of 142 percent in two years as the shares have 135 in January 2021 to the current levels.
The small-cap company has a market capitalization of Rs 2,126 Crore and a dividend yield of 1.52%. In addition to that, the company has a TTM PE ratio of 7.57 as compared to a sector average of 34.32 and thus is undervalued in the market.
Written by Anoushka Roy