Ganesha Ecosphere — Multiple Growth Levers Ahead: HDFC Securities Initiates Coverage

HDFC Securities Retail Research

Ganesha Ecosphere Ltd. is engaged in manufacturing of regenerated polyester stable fibre, dyed yarn and recycled spun yarn. The main raw material for RPSF is waste PET bottles.

Ganesha Ecosphere has established strong relations and collection network across the country based on which the company mobilises ~350 tons of PET waste every day. Ganesha Ecosphere requires raw material (PET bottles) of 1,20,000 tons to 1,30,000 tons annually which is sourced from vendors’/scrap dealers across India through a network of more than 20 collection centres. The company has diversified vendor/supplier profile with top ten suppliers contributing ~29% of total purchase in FY22.

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.

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