Ganesha Ecosphere shares surge after incorporating JV company; details
Source: Business Standard
Shares of Ganesha Ecosphere jumped 3.35 per cent at Rs 2024.90 per share on the BSE in Thursday’s intraday trade. The Ganesha Ecosphere share price today surged after the company incorporated a joint venture company Ganesha Recycling Chain.
The joint venture has been established in collaboration with Race Eco Chain to set up washing plants for producing pet flakes, the company said in an exchange filing.
Pet flakes are used as a raw material in producing household products such as carpets and filler for stuffed toys, pillows and cushions
Ganesha Ecosphere has subscribed 2.94 million equity shares at the face value of Rs 10 each aggregating to Rs. 2.94 crore. The company will hold a 49 per cent equity shareholding in the new company.
Ganesha Recycling Chain (the new entity) has an authorised share Capital of Rs 10 crore and paid-up share capital Rs 6 crore only.
Ganesha Ecosphere Ltd is a leading PET (Polyethylene terephthalate) waste recycling company in India, specialising in the production of Recycled Polyester Staple Fibre (RPSF), spun yarn, and dyed textured yarn. The company operates three facilities in Kanpur (UP), Rudrapur (Uttarakhand), and Bilaspur (Uttar Pradesh), with a combined manufacturing capacity of 118,800 tonnes per annum (TPA) for RPSF and yarn.
For the April-June quarter of financial year 2024-25 (Q1FY25), Ganesha Ecosphere reported a net profit of Rs 22.5 crore for the June 2024 quarter, driven by higher income. This compares to Rs 3.5 crore in the same period of the previous fiscal year. Revenue from operations climbed to Rs 336.5 crore from Rs 729.5 crore, 32.4 per cent jump year on year.
The company has a total market capitalisation of Rs 4,904.39 crore. Its shares are trading at a price to earnings multiple of 66.38 times with an earning per share of Rs 29.51, according to data available on BSE.
At 10:52 AM; the share price of the company pared all its early morning gains and slipped in red, falling 1.24 per cent at Rs 1,934.90 a piece. By comparison, the BSE Sensex was trading 0.25 per cent higher at 81,730 levels.
First Published: Sep 12 2024 | 11:05 AM IST
