Broker’s call: Ganesha Ecosphere (Buy)

Target: ₹2,459

CMP: ₹1,521.50

Ganesha Ecosphere Ltd (GESL) is one of the leading PET bottle recycler in India with the largest FSSAI-approved rPET granule capacity as of FY25.

The company specialises in recycling virgin PET bottles into higher value-added products such as Recycled Polyester Staple Fibre (rPSF), Recycled Polyester Spun Yarn (rPSY), Dyed Textured Yarn (DTY), and premium value-added products like Recycled Filament Yarn and rPET B2B granules/chips.

GESL operates six manufacturing units with a combined capacity of about 196,440 TPA, which includes 12,280 TPA of Recycled Filament Yarn and 42,000 TPA of rPET B2B chips/granules, recycling over 8.5 billion scrap bottles annually as of FY25.

Leveraging over three decades of expertise, GESL has developed 500+ product variants, serving 400+ customers across 20 countries. The company plans to triple its rPET granule capacity from 42,000 TPA to 132,000 TPA by H1FY27, as part of its strategy to raise the share of value-added products from 40 per cent in FY25 to 60-65 per cent by FY27.

With volume growth driven by new capacities, increase in value-added mix, and industry tailwinds from government’s EPR mandates, the company is well positioned to deliver improvement in both revenue and profitability. We initiate coverage on GESL with a Buy rating and a target price of ₹2,459 (35x FY28E EPS), resulting in about 64.8 per cent upside from current price

Published on July 15, 2025