The shares of this microcap company locked a 10 percent upper circuit after securing approval for a trial with one of the largest global beverage corporation. In just one month, the stock has delivered more than 100 percent return to its shareholders.
Price Movement:
With a market capitalization of Rs. 969 crores, the shares of Cool Caps Industries Ltd started Thursday’s trading session on a higher note at Rs. 800 compared to its previous close of Rs. 762.45. During the trading session, the shares clocked a 10 percent upper circuit at Rs. 838.65 apiece, also recorded as the company’s fresh 52-week high.
What Happened:
Such a bullish movement in the share price was observed after the company in an exchange filing announced that it had received approval for the trial of its PET preform from a major global beverage company. The approval marks a significant milestone for the company and paves the way for a potential long-term partnership.
This opportunity not only validates the quality of their PET preforms but also opens doors for potential long-term partnerships with leading players in the beverage sector.
Financials:
Looking at the company’s financial performance, the revenue declined by 16 percent from Rs. 182 crores during FY22-23 to Rs. 153 crores in FY23-24. On the other hand, the net profits decreased by 33 percent from Rs. 6 crores to Rs. 4 crores during the same timeframe.
Manufacturing Capabilities:
The company currently has a cap production capacity of over 4,000 metric tonnes, with plans to expand it by an additional 2,500 metric tonnes.
Handle production capacity exceeds 4.5 crores, with future goals set to surpass 7 crores. PET preform production is at 60 lakhs, with an additional 60 lakhs planned for future capacity.
The company operates manufacturing units in Howrah, West Bengal, and Kotdwar, Uttarakhand. Additionally, it trades in shrink film to complement its product offerings
Furthermore, the company aims to produce 1,680 million Alaska caps annually. For 20-litre jars and their caps, it plans to add an extra capacity of 60 tonnes per year.
Recycling Segment:
Cool Caps Industries is actively involved in recycling operations through its subsidiary Purv Technoplast Pvt Ltd, which has set up a facility in Assam for washing and crushing post-consumer PET bottles to produce food-grade RPET flakes.
Customer Base:
Cool Caps Industries Ltd is a prominent Indian manufacturer of plastic caps and closures, primarily catering to the beverage packaging sector. Its diverse customer base includes major brands like Bisleri International Pvt Ltd, United Breweries Group (Kingfisher beer), and Rail Neer, among others.
Shareholding Pattern:
According to the latest shareholding pattern, the Promoters maintain ownership of 74.33 percent, with Sanjiv Goenka owning 0.03 percent. The remaining 25.67 percent of shares are held by Retail Investors.
Company Profile:
Cool Caps Industries Ltd is a prominent manufacturer in the plastic products sector, specializing in the production of plastic bottle caps and closures, PET preforms, plastic handles, and heat-shrinkable plastics primarily for the beverage packaging industry in India.
As a subsidiary of Purv Group, the company emphasizes sustainable practices by integrating recycled materials into its production processes and is recognized for its commitment to quality and customer support.
Written By Vaibhav Patil
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