A leading polymer manufacturing firm is set to expand its footprint with a promising new venture in Uttar Pradesh, following a recent memorandum of understanding with the state government. The Rs. 50 crore project, slated to commence within six months, promises employment opportunities for 300 individuals while enhancing the company’s market reach and customer service capabilities.
Share Price Movement
The share price of SPP Polymer Limited hit an intraday high of 4.87 percent to Rs. 33.40 per share on Tuesday, an increase from its previous close of Rs. 31.85 per share. The market capitalisation now stands at approximately Rs. 51.41 crore as of January 07, 2025.
What’s Driving Share Price?
The company plans to start a new project in Uttar Pradesh. They’ve signed an MOU with the Government of Uttar Pradesh for this. The project will cost around 50 crores and will create jobs for about 300 people. They expect to start this project in the next six months, which will help them serve more customers.
Financial Highlights
The company’s revenue grew by 38.93% from Rs. 66.05 crore in March 2023 to Rs. 91.75 crore in March 2024. Profit increased by 83.33%, rising from Rs. 0.54 crore to Rs. 0.99 crore during the same period, reflecting strong financial growth and improved profitability.
The average price-to-earnings (P/E) ratio in the packaging industry is 27.99, which is less than SPP Polymer’s current P/E ratio of 51.93.
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Market Outlook
The food processing sector’s growth in India, driven by a focus on food safety and quality, will increase demand for packaging. The packaging market is set to expand significantly, with a projected growth of 26.7% CAGR from US$ 50.5 billion in 2019 to US$ 204.81 billion by 2025. Innovation in sustainable packaging is also a key focus, with the CSIR promoting eco-friendly solutions. Investments are rising, including significant projects by companies like SIG, boosting the sector’s growth and sustainability.
Shareholding Pattern
As of the September 2024 shareholding pattern, SPP Polymer Limited is primarily held by the promoters at 67.08 percent, foreign institutional investors hold 0.69 percent, and the public with 32.23 percent.
About Company
SPP Polymer Limited, established in 2004 and based in Rudrapur, Uttarakhand, is a leader in the Indian packaging industry, specialising in HDPE/PP woven fabrics, non-woven fabrics, and multifilament PP yarn for industries such as agriculture, cement, and food. With annual production capacities of 12,000 MT for woven fabrics and bags, 4,000 MT for non-woven fabrics, and 300 MT for yarn.
The company ensures high quality through rigorous in-house testing and focuses on sustainability and innovation through its dedicated R&D division, solidifying its position as a reliable partner in global packaging solutions.
Written By Fazal Ul Vahab C H
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