One of the small-cap stocks engaged in manufactures and sells Container Glass bottles, PET bottles, and security caps and closures under the Packaging Products segment. The stocks is in focus after the board’s approval of a Qualified Institutional Placement (QIP) issue of Rs. 1,500 crore.
Stock Price Movement:
In Monday’s trading session, AGI Greenpac Limited’s share plunged by 3.62 percent from the previous close of Rs. 1,239.20. The stock opened at Rs. 1,226.75 and is currently trading at Rs. 1,194.40, with a high of Rs. 1,258.30 and a low of Rs. 1,186.35. The market capitalization now stands at approximately Rs. 7,727.46 crore.
What Happened:
AGI Greenpac Limited announced that its Board of Directors has approved a proposal to raise funds through the issuance of equity shares for an aggregate amount of up to Rs. 1,500 crores.
The securities will be issued through various permissible modes, including public issue, rights issue, preferential issue, private placement, or qualified institution placement.
Future Guidance:
AGI Greenpac Limited focuses on maintaining high capacity utilization and exploring inorganic growth opportunities. It has no immediate plans for further furnace relining in the next 12 months, ensuring stable production levels.
Market Share:
AGI Greenpac Limited (AGIGL) produces a range of packaging products, including glass containers, specialty glass, PET bottles, and security caps & closures. With a 17%-20% market share, it is the second-largest player in India’s organized glass packaging industry by installed capacity.
Operational Highlights:
AGI Greenpac Limited maintained glass container capacity utilization at around 93%, despite a scheduled furnace shutdown for relining. The furnace resumed operations in late August 2024. The completed furnace relining project is expected to enhance operational efficiency and meet the growing demand for glass containers.
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Export Strategy:
AGI Greenpac Limited’s current export share is around 5%, with plans to expand this segment through a new subsidiary and participation in international exhibitions. Management highlights the focus on value-added products to sustain export viability amid high freight costs.
Recent quarter results and ratios:
AGI Greenpac Limited’s revenue has decreased from Rs. 615 crore in Q2 FY24 to Rs. 599 crore in Q2 FY25, which has down by 2.60 percent. The net profit of AGI Greenpac Limited has grown by 28.57 percent from Rs. 56 crore in Q2 FY24 to Rs. 72 crore in Q2 FY25.
AGI Greenpac Limited’s revenue and net profit have grown at a CAGR of 8.57 percent and 75.68 percent, respectively, over the last five years.
In terms of return ratios, the company’s ROCE and ROE should be 17.7 percent and 14.5 percent, respectively. The debt-to-equity ratio of the company is to be 0.32x, which shows the company is almost debt-free. AGI Greenpac Limited’s EPS is to be Rs. 41.3.
Company Overview:
AGI Greenpac Limited was founded in 1960 and manufactures and sells container glass bottles, PET bottles, and security caps and closures. The company is headquartered in Gurgaon, India. The company has diversified into a leading provider of packaging solutions across various industries.
Written By – Nikhil Naik
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