Ganesha Ecosphere Stock Soars 6% on ₹750 Crore Expansion Plan Announcement
Ganesha Ecosphere: In a significant development for the Indian PET plastic recycling industry, shares of Ganesha Ecosphere Limited, one of the leading players in the space, witnessed a sharp rise of 6.3% during Monday’s trading session. The stock surged to ₹1,907.05 on the Bombay Stock Exchange (BSE) following the company’s announcement of a substantial investment of ₹750 crore to expand its production capacity.
What’s Driving the Surge?
Ganesha Ecosphere revealed its ambitious expansion plans through regulatory filings, highlighting its intention to strengthen its position in the recycled PET (rPET) sector. The company announced that its wholly-owned subsidiary, Ganesha Ecopet Private Limited, will establish a Greenfield Project in Odisha with a capacity of 45,000 tons per annum (TPA) for producing rPET chips and granules.
In a bold move to scale operations further, the board approved an additional capacity expansion of another 45,000 TPA. This growth strategy includes:
- Setting up a Greenfield Project in Odisha with a total capacity of 67,500 TPA.
- Expanding the capacity of the Warangal Plant from 42,000 TPA to 64,500 TPA.
Enhanced Production Capacity
The company’s current installed capacity stands at 42,000 TPA, with a utilization rate of approximately 75%. With the proposed expansions, the total production capacity is expected to increase by 90,000 TPA, taking the overall capacity to over 130,000 TPA.
The investment for this expansion is pegged at ₹700–₹750 crore, which will be funded through a mix of debt, equity, and internal accruals. The company anticipates completing the project within the next 18 months, a move that could further solidify its leadership in the recycling industry.
Financial Performance at a Glance
Ganesha Ecosphere has demonstrated robust financial performance, with its net revenue from operations jumping nearly 40% year-on-year (YoY) from ₹284.8 crore in Q3 FY24 to ₹397.8 crore in Q3 FY25.
The company also reported a significant net profit growth of 133.8% YoY, with profits rising from ₹12.7 crore to ₹29.7 crore during the same period.
Stock Market Performance
Ganesha Ecosphere’s stock has been a strong performer in the long term, delivering positive returns of 61.5% over the past year and 12% over six months. However, the stock has faced some short-term headwinds, with negative returns of about 11% in the last month.
Here’s a snapshot of the company’s key financial ratios:
| Metric | Value |
|---|---|
| Market Cap | ₹4,366 Cr |
| Current Price | ₹1,724 |
| 52-Week High/Low | ₹2,484 / ₹900 |
| Stock P/E | 43.2 |
| Book Value | ₹432 |
| Dividend Yield | 0.17% |
| ROCE | 7.92% |
| ROE | 4.71% |
| Debt to Equity | 0.44 |
| Industry P/E | 26.4 |
| Debt | ₹486 Cr |
| Face Value | ₹10.0 |
About Ganesha Ecosphere
Incorporated in 1987, Ganesha Ecosphere Limited has been at the forefront of PET waste recycling in India. The company specializes in manufacturing Recycled Polyester Staple Fibre (RPSF), recycled spun yarn, dyed texturized yarn, and rPET chips and filament yarn.
With a total installed capacity of 196,440 tons across its product lines, Ganesha Ecosphere continues to be a pioneer in sustainable manufacturing, contributing significantly to India’s circular economy.
The Road Ahead
The announcement of a ₹750 crore investment signals Ganesha Ecosphere’s commitment to capitalizing on the growing demand for recycled PET products. By expanding its capacity and improving operational efficiency, the company is positioning itself to cater to the rising global emphasis on sustainability.
The expansion not only strengthens its production capabilities but also aligns with India’s increasing focus on green initiatives and reducing plastic waste. Investors and industry observers alike are optimistic that Ganesha Ecosphere’s forward-looking strategies will deliver long-term value and solidify its leadership in the recycling industry.
Final Thoughts
The sharp rise in Ganesha Ecosphere’s stock price reflects investor confidence in the company’s growth plans and its ability to execute large-scale projects. As the company moves ahead with its capacity expansion, it is poised to play a pivotal role in addressing India’s plastic waste challenges while enhancing shareholder value.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.