Shares of AGI Greenpac, the country's leading packaging products company, have been on a winning streak, skyrocketing nearly 29% in the last five trading sessions. During this period, the shares have rallied from ₹677.85 to ₹871.60 apiece.
The remarkable rally caught the attention of the Bombay Stock Exchange (BSE), prompting it to seek clarification from the company on September 21. The company replied today that it had no positive information or any other material information to disclose that could impact trading activity or volume behaviour.
The recent surge in the company's stock has propelled it to achieve substantial gains of 175% in less than six months, an impressive 306% in the last two years, and a whopping 1179% over the last three years.
AGI Greenpac is engaged in the production of various packaging products, including glass containers, specialty glass, polyethylene terephthalate (PET) bottles and products, and security caps and closures.
The company has commenced commercial production of its specialty glass facility set up at Bhongir in the state of Telangana with an installed capacity of 154 tonsper day. With this new addition, the company's total installed capacity has reached 1,754 tons per day.
The company said that this new plant has the capabilities to fulfil the demands of customers across various industries, including pharmaceuticals, cosmetics, perfumery, premium spirits, and other high-end F&B segments.
Looking ahead, the global container market is anticipated to a compound annual growth rate (CAGR) of 3.7% between 2021 and 2028, owing to the rising worldwide demand for fast-moving consumer goods (FMCG) and alcoholic beverages, according to company's FY23 annual report.
According to recent statistics, beer was ranked as the 246th most-traded commodity in the world in 2021, with a total trade value of US$16.8 billion. Moreover, there was an 8.21% increase in beer exports from US$15.5 billion in 2020 to US$16.8 billion in 2021. This bodes well for the glass packing market since beer as a commodity will boost the sale of the same.
Furthermore, the fine mist spray bottle segment is an incremental opportunity for the glass packaging industry since it is projected to reach a value of US$447.7 million during 2022-2032. The push pump bottle is also expected to dominate the global glass cosmetic bottle market and exhibit a CAGR growth of 5% during the forecasted period, the report noted.
The global market for caps and closures, on the other hand, is expected to experience significant growth in the coming years, with a projected valuation of US$89.9 billion in 2023 and an anticipated CAGR of 5.7% between 2023 and 2033, reaching a value of US$157.0 billion by 2033, as per the report.
These factors collectively underline the company's potential for growth in the thriving glass packaging sector.
For the June-ending quarter (Q1FY24), the company reported a net profit of ₹63 crore, down from ₹66 crore in Q1FY23. The revenue from operations surged 7% YoY to ₹558 crore in Q1FY24.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
