During Monday’s trading session, shares of one of the leading players in the PET plastic recycling space in India surged nearly 6.3 percent to Rs. 1,907.05 on BSE, after the company announced capacity expansion plans with up to Rs. 750 crores investment.
With a market cap of Rs. 4,369 crores, the shares of Ganesha Ecosphere Limited opened in the green at Rs. 1,835.05, up by around 2.3 percent, as compared to its previous closing price of Rs. 1,794.45.
What’s the news:
Ganesha Ecosphere Limited, in its latest regulatory filings with the stock exchanges, announced that its wholly-owned subsidiary, Ganesha Ecopet Private Limited, will set up a Greenfield Project in Odisha with capacity of 45,000 tons per annum (TPA) for manufacturing rPET Chips/Granules.
The company’s Board has further expanded its plans, increasing the capacity by an additional 45,000 TPA, with the expansion strategy including: (i) setting up a Greenfield Project in Odisha with a capacity 67,500 TPA, and (ii) expanding the Warangal Plant’s capacity from 42,000 TPA to 64,500 TPA.
Currently, the company’s existing capacity is 42,000 TPA, with a utilization rate of around 75 percent. The proposed capacity addition will total 90,000 TPA (including the additional 45,000 TPA).
The expansion is expected to be completed within 18 months, with an estimated investment of Rs. 700-750 crore, funded through a combination of debt, equity, and internal accruals.
Financials:
Ganesha Ecosphere reported a significant growth in the net revenue from operations, experiencing a rise of nearly 40 percent YoY, increasing from Rs. 284.8 crores in Q3 FY24 to Rs. 397.8 crores in Q3 FY25.
Similarly, during the same period, the company’s net profit increased from Rs. 12.7 crores to Rs. 29.7 crores, representing a growth of around 133.8 percent YoY.
Stock Performance:
The stock has delivered positive returns of nearly 61.5 percent in one year, as well as around 12 percent returns in six months. However, the shares of
Ganesha Ecosphere have given negative returns of about 11 percent in the last one month.
About the Company:
Incorporated in 1987, Ganesha Ecosphere Limited is a leading PET waste recycling company in India and is mainly engaged in the business of manufacturing of Recycled Polyester Staple Fibre (RPSF), recycled spun yarn, dyed texturised yarn, and recently ventured into rPET chips and rPET filament yar
The company is one of the leading players in the PET plastic recycling space in India with a total installed capacity of 196,440 tons across products like RPSF, rPET granules, rPET filament yarn, Spun Yarn, dyed filament and PPSF.
Written by Shivani Singh
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