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Institutional investors aggregate money from various investors and other entities and then invest it in different financial assets. There are two types of Institutional Investors, Foreign Institutional Investors (FIIs), and Domestic Institutional Investors, (DIIs) in India. 

Whenever foreign investors like Goldman Sachs, Morgan Stanley, HSBC, and others buy or sell the shares of Indian companies, their stock price makes a significant move. The same pattern is observed when domestic institutions like Mutual Funds or Insurance Corporation buy or sell stocks. 

Listed below is one such stock in which both FIIs and DIIs have increased their stake duirng Q4FY24:

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Ganesha Ecosphere Ltd 

With a market capitalization of Rs. 2,734 crores, the shares of Waste Recycling company started Wednesday’s trading session on a higher note at Rs. 1,078.25 compared to its previous close of Rs. 1,074.75. During the trading session, the shares hit a high of Rs. 1,082, gaining around 2 percent and are currently trading at Rs. 1,075 apiece. 

Looking at the company’s financial statements, the revenue increased by around 3 percent from Rs. 278 crores during the September quarter to Rs. 285 crores in the December quarter. In addition, the net profits magnified by 333 percent from Rs. 3 crores to Rs. 13 crores during the same period. 

Comparing these metrics on a YoY basis, the revenue increased by 4 percent from Rs. 273 crores during Q3FY23 to Rs. 285 crores in Q3FY24. On the other hand, the net profits declined by 38 percent from Rs. 21 crores to Rs. 13 crores during the same timeframe. 

According to the BSE data, FIIs boosted their stake by 9.04 percent, rising from 0.89 percent in the December quarter to 9.93 percent in March. Notably, Goldman Sachs purchased a fresh stake of 2.71 percent, while Societe Generale entered the stock with an acquisition of 1.41 percent. 

Meanwhile, Domestic Institutional Investors (DIIs) boosted their stake by 1.35 percent, rising from 19.94 percent in Q2FY24 to 21.29 percent. Notably, SBI Mutual Funds increased their stake by 2.76 percent to 9.55 percent during the March quarter, while ICICI Prudential Mutual Fund acquired a fresh stake of 1.98 percent during the same period. 

Coming onto the important financial statement, the return on equity decreased from 12.61 percent during FY21-22 to 11.85 percent in FY22-23. On a contrasting note, the return on capital employed increased from 14.46 percent to 14.57 percent during the same period. Furthermore, the net profit margin decreased marginally from 6.80 during FY21-22 to 6.47 percent in FY22-23. 

The company anticipates a robust revenue surge of 50 percent in the forthcoming financial year. Furthermore, it foresees achieving EBITDA margins within the range of 15 percent to 16 percent during FY25. 

Additionally, the company subsidies are anticipated to contribute to financial performance throughout FY24 and FY25 and the company sets ambitious objectives for market share, aiming to attain 25 percent to 30 percent within the next 5 to 6 years. 

Headquartered in Uttar Pradesh, Ganesha Ecosphere was incorporated in 1987. The company is a leading PET Waste Recycling company in India and is engaged in the manufacturing of Recycled Polyester Staple Fibre (RPSF), Spun yarn and dyed texturised yarn in India.

Written By Vaibhav Patil

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