The shares of the prominent products packaging company gained up to 7 percent after the company announced Rs 700 crore capex for a new Container Glass Plant.
Price Movement
With a market capitalization of Rs 5,112.06 crore, the shares of Agi Greenpac Ltd were trading at Rs 790.15 per share, increasing around 6 percent as compared to the previous closing price of Rs 745.25 apiece.
Reason for rise
The shares of Agi Greenpac Ltd have seen bullish movement after announcing the setting up of a state-of-the-art greenfield, high-output and high-efficiency manufacturing plant in Madhya Pradesh with a capital expenditure outlay of Rs 700 Crore. This expansion will increase the company’s container glass manufacturing production capacity by 25 percent to meet the rising demand for high-quality glass packaging products.
Moreover, AGI Greenpac’s new facility will enhance its geographical reach, incorporating advanced manufacturing technologies and sustainable practices. This expansion reinforces the company’s commitment to environmental responsibility and long-term growth, while complementing its existing glass plants in Telangana, strengthening its overall manufacturing footprint.
Capacity Utilization
The company maintains a glass container capacity utilization of over 95%. Management focuses on disciplined cost management and optimizing the product portfolio, emphasizing these strategies to drive efficiency, enhance profitability, and sustain high production levels for continued growth.
Also read: PSU infra stock to keep on you radar as it receives more than ₹5,750 Cr orders in March 2025
Market Dynamics
Management considers the current top-line achievement of ₹650 crore as a “normalized normal,” driven by raw material prices. Full capacity utilization minimizes the effects of competitors’ operational shifts, such as shutdowns of furnaces, on their market position and performance.
Market Share
AGI Greenpac Limited (AGIGL) produces a range of packaging products, including glass containers, specialty glass, PET bottles, and security caps & closures. With a 17%-20% market share, it is the second-largest player in India’s organized glass packaging industry by installed capacity.
Volume and Sales Growth Guidance
Management anticipates growth in both volume and value, regardless of the acquisition outcome. They emphasize expanding into new segments to enhance product value, aiming for sustained growth. The strategy focuses on increasing the value of products sold while maintaining a solid growth trajectory.
Company Profile
AGI Greenpac Limited is an India-based packaging products company. The Company’s business segments include the Packaging Product Division, Investment Property, and Others. The Packaging Product Division segment is engaged in the manufacturing and marketing of various packaging products, including containers and specialty glass, etc.
Written by Abhishek Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
