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Mumbai: Before the results of the Lok Sabha elections, Prime Minister Narendra Modi, Home Minister Amit Shah and Finance Minister Nirmala Sitharaman have predicted that after June 4, the Indian stock markets will see a historic record rise. After seeing the determination of Modi 1 and Modi 2 to carry forward the economic policies of the Modi 3 government, foreign funds have got the signal that India's development story will accelerate, they expressed full confidence in the leadership of Prime Minister Narendra Modi. Regretful of being left behind, now have started buying stocks fiercely. In the last days of last week, banking stocks have seen a rise on Wednesday and IT-software services, infrastructure, power stocks on Thursday. With this, the Sensex has crossed the level of 79000 and the Nifty has crossed the level of 24000 and reached a new high. In this series of continuous record rise, large cap stocks are being bought fiercely at the moment. At the same time, the rise of small, midcap stocks has now been halted. Investigation of front-running in mutual funds has revealed that high-net-worth investors are wary of small, mid-cap stocks and refrain from fresh purchases until the picture becomes clearer. Of course, selective buying continues in stocks with good fundamentals and attractive valuations. After the monsoon progress slows down, the immediate possibility of bullish sentiment is to remain intact given the good progress of monsoon in different parts of the country. Along with this, some big and important decisions can be taken in preparation for the budget, but amid speculation, next week the Nifty spot is likely to remain between 23555 to 24222 and the Sensex between 77444 to 79777.
Arjun's Eyes : Arrow Greentech Ltd.
BSE(516064), NSE (AeroGreen) listed, Rs.10 paid-up, ISO 9001:2008, IS 16154:2014 certified, Arrow Greentech Limited (Arrow Greentech Limited) Company formerly known as Arrow Coated Products Limited was engaged in manufacturing of Water Soluble Films Watsol is a leading company manufacturing expertise and other patented products based on various technologies. Headquartered in Mumbai and equipped with R&D laboratory, the company has a factory in Ankleshwar-Gujarat. The company believes in continuous change in the dynamic world and is developing through unique technologies for industries as well as people. The company has been manufacturing eco-friendly products through patented technologies for over 25 years. The company has more than 35 patents across the globe including India. The company has five technological pillars: Packaging, Hygiene, Health, Printing and Safety.
A sustainable future through maximum environmental care has always been at the heart of the company since its inception in the year 1992. The company introduced the first water soluble film (Watersol) in the mid-nineties. High standards and quality services have made the company one of the most reputed companies in India. The company never compromises with the right products and right quality standards for its customers.
Watersol, also known as PVA film, is made of polyvinyl alcohol, which decomposes when it comes in contact with water. This one product has multiple applications and can be customized as per the desired results of each product. This film is made in state-of-the-art casting machines using the company's patented technology. Watersol film facilitates better packaging of cosmetics, agrochemicals, biocides, detergents, personal hygiene products, specialty chemicals, specialty cleaners, food products, powdered antibiotics and water treatment products. It is also used in embroidery, mold release and water transfer printing. Watersol film has various properties, which make it suitable for various use-applications. Which is light in weight, colorless, odorless, non-static and non-polluting. Being anti-static it also does not absorb dust while packing powdered products. This film is available in thicknesses of 25 to 100 gsm with a precise dosing system, ensuring no leakage, no recycling issues and no shipping issues.
Aero Greentech Limited provides global supplies to countries in Europe, Asia, Africa, North and South America from three main supply bases in India, United Kingdom and South America, ensuring quality service to its customers.
Manufacturing Facilities: The company has a manufacturing facility in Ankleshwar-Gujarat. The company has leased three acres of land in Dahej-II Industrial Estate to expand manufacturing activities in the Greentech segment. The company is likely to complete the first phase of expansion within 12 months.
Products: Packaging Film: Agro Chemical Film, Cement-Dye-Enzyme Film, Liquid Detergent, Balit Film, Seed Tape, Laundry Bag, Toilet Block, Powder Detergent. It includes embroidery film, shop film, mold release film, water transfer printing film.
Intellectual Property: The company has 34 patents worldwide in India, UK, South Africa, Europe, Asia and Russia. In addition, there are 28 Indian patent applications and 8 foreign patent applications in process. Areas covered include water-soluble films and security sections.
New Patent: On May 15, 2024, the company has been awarded a patent in India for the process of manufacturing medicated bandages.
Holding, Subsidiary and Associate Companies of the Company:
(1) 100% subsidiary Aero Secure Technology Pvt. Ltd. (2) 100% subsidiary Arrow Green Technologies (UK) Ltd. (3) 99% subsidiary Avery Pharmaceutical Pvt. Ltd. (4) 51% subsidiary LQ Arrow Security Products (India) Pvt. Ltd. (5) 46% subsidiary SP Arrow Biopolymer Products Pvt. Ltd. (6) 49% subsidiary Sphere Biopolymer Pvt. Ltd.
Dividend: 10 percent in 2023, 20 percent in 2024
Book Value: Rs 70 in March 2023, Rs 85 in March 2024, expected Rs 111 in March 2025
Shareholding pattern: 68.60 per cent promoter holding by Shilpan Pravin Patel family, 15.69 per cent stake held by HNIs, foreign companies, corporate bodies, FIIs, 15.71 per cent stake held by individual retail shareholders up to Rs 2 lakh.
Segment wise revenue: FY 2022-23: 221 per cent of the company's total revenue comes from the sale of water-soluble films, 63 per cent from the sale of anti-counterfeit products, two per cent from consulting revenue, 10 per cent from the sale of biodegradable resins and three per cent from other businesses.
Segment-wise revenue: FY 2023-24: 83 per cent from high-tech products and 17 per cent from green products.
Consolidated Financial Results: (1) Full Year April 2022 to March 2023:
Net Income grew by 214.34% to Rs 111.12 crore, Net Profit Margin-NPM grew by 11.42% to Rs 12.68 crore and Earning Per Share-EPS stood at Rs 8.52.(2) Full Year April 2023 to March 2024:
Net Income expected to grow 36% to Rs 151.11 crore from NPM of 19.86% and Net Profit expected to grow 136% to Rs 30 crore, earning per share at Rs 19.56. (3) Expected Full Year April 2024 to March 2025: Net Income expected to grow 35% to Rs 204 crore, NPM expected to grow 19.50% to Rs 39.80 crore, earning per share expected to be Rs 26.37.
Thus (1) The author has no investment in the shares of the above company. Authors may have direct or indirect personal vested interests in the research sources. Consult a qualified investment financial advisor before making any investment decision. The author, Gujarat Samachar or any other individual shall not be responsible for any potential loss on investment. (2) Shilpan Pravin Patel family owns 68.60 per cent promoter (3) Expected full year April 2024 to March 2025 earnings per share EPS of Rs 10 against Rs 26.37 and expected book value of Rs 111. Currently trading at Rs 564.15 on BSE (Rs 566.90 on NSE) on June 28, 2024 at a P/E of only 21.40 while the plastics industry average P/E is 52.