Target: ₹1,010

CMP: ₹936.40

Ganesha Ecosphere Ltd. (erstwhile known as Ganesh Polytex Ltd), is engaged in manufacturing of Regenerated Polyester stable fibre (RPSF), dyed yarn and recycled spun yarn. The main raw material for RPSF is waste PET bottles.

GEL has its manufacturing units at Kanpur (Uttar Pradesh), Rudrapur (Uttarakhand), and Bilaspur (Uttar Pradesh), the company has a cumulative existing capacity of 1,18,800 tpa.

Besides, recently company’s two manufacturing facilities under wholly owned subsidiaries at Warangal with capacity of 53,000 recycled chip and Nepal with capacity of 12000 recycled chip commenced operations on February 1, 2023, (Washed Pet Flakes and PPSF- Warangal; Washed Pet Flakes and chips – Nepal) and April 1, 2023 (rPet chips and Filament Yarn – Warangal).

GEL has an experienced promoters and management team along with dominant position of the company into RPSF business with its presence in both fibre and yarn leading to integrated nature of operations. It also has efficient raw material procurement system, established relationship with diversified customer profile and established product distribution network resulting into increased penetration in the export market.

Considering the company’s strong financial profile, led by healthy profitability levels and return indicators, volume growth from commissioning of new facilities and a comfortable capital structure, we have a positive view on the stock.