Ganesha Ecosphere empowers growth through subsidiary capacity expansion

In the morning trading session, the Sensex and Nifty remained relatively unchanged. However, by the end of the trading session, both the Sensex and Nifty experienced a slight decline, closing lower by 0.16% and 0.13% respectively in the Indian stock market.

Today, the wholly-owned subsidiary of Ganesha Ecosphere Ltd has revealed its plans for expansion by introducing an extra production line.

Details are as follows:

The current production capacity stands at 12,000 tons per annum (TPA), with operations yet to reach stable levels. A proposed expansion aims to add an additional 12,000 TPA to the capacity, targeted for implementation within the upcoming 3-4 months.

To facilitate this expansion, a total investment of Rs 50 crore is envisioned, with financing planned through a combination of debt and equity.

This strategic move aligns with the rationale of expanding the business and its operations.

During Q1FY24, the company witnessed a marginal 0.13% decline in its revenue, amounting to Rs 254.12 crore as compared to the same quarter in the preceding year. The company’s enhanced production capacity could potentially help recover from this minor shortfall observed in the current quarter.

About the company

Ganesha Ecosphere Ltd, a prominent player in India’s PET Waste Recycling sector, specialises in producing Recycled Polyester Staple Fibre (RPSF), Spun yarn, and dyed texturized yarn. The company’s origins trace back to its incorporation in 1987 under the name Ganesh Polytex Ltd. In October 2011, it underwent a name change, adopting the moniker Ganesha Ecosphere Ltd.

The stock has witnessed significant buying activity surging more than 368% in the last 3 years. 

In Tuesday’s deals, the shares of Ganesha Ecosphere Limited plunged 3.55% and the scrip witnessed a massive spurt in volume by more than 121.58 times. The company’s current market capitalization is Rs 2,312.93 crore. 

Keep a close eye on this trending stock.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.