Stock Snapshot
Price Performance
Recommendation Rationale
Moderate growth outlook supported by strong demand in the rPET segment, tempered by margin pressures.
Basis of our Recommendation
Ganesha Ecosphere Ltd is experiencing moderate growth potential, primarily fueled by strong demand in the rPET segment. However, the company is facing margin pressures from rising raw material costs and operational challenges in its legacy business.
Why We Like This Stock
- Strong demand in the rPET segment
- Moderate growth potential
Things To Watch Out For
- Rising raw material costs impacting margins
- Operational challenges in the legacy business
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 1,123 | 1,466 | 1,482 | 1,644 | 1,824 |
| Profit Before Tax (Cr.) | 58 | 135 | 54 | 77 | 89 |
| PBT Margin | 5.2% | 9.2% | 3.6% | 4.7% | 4.9% |
| Net Profit (Cr.) | 37 | 110 | 36 | 52 | 60 |
| EPS | 14.0 | 41.0 | 13.4 | 19.2 | 22.3 |
Company Overview
Show Company Profile
Ganesha Ecosphere Limited primarily manufactures and sells recycled polyester staple fiber in India. The company offers recycled PET (rPET) fibre comprising solid, hollow, conjugated, flame retardant, short-cut, micro, and trilobal fibers. It also provides yarns; rPET flakes; and rPET chips for bottle grade and textile/sheet grade. In addition, the company offers fiber filling, non-wovens, spun yarn and dyed texturized yarn. Its products are used in manufacturing of t-shirts, body warmers, non-woven air filter fabrics, geo textiles, carpets, car upholstery products, pillows, duvets, toys, etc.; and various applications, including curtains, furniture covering, table clothes/place mats, public contracts, liners, protective clothing, workwear, covering, filters, and netting. The company serves geo-textiles, medical and packaging, textiles, FMCG, automobile, spinning mills, and beverage industries. It also exports its products. The company was formerly known as Ganesh Polytex Ltd. and changed its name to Ganesha Ecosphere Limited in September 2011. Ganesha Ecosphere Limited was incorporated in 1987 and is based in Kanpur, India.