Shares of Arrow Greentech hit a new high of Rs 944.60, as the stock of the packaging company was frozen at the 20 per cent upper circuit on the BSE on Monday at 11:31 am. The buying at the counter was seen after the firm reported a solid set of numbers for the June 2024 quarter (Q1FY25).
In the past nine trading days, the stock price of Arrow Greentech has surged 73 per cent from a level of Rs 546 on July 22. The stock has zoomed 218 per cent from its 52-week low of Rs 297.50 touched on August 21, 2023.
Arrow Greentech specializes in biodegradable and high-tech products, notably as India’s largest manufacturer of Water Soluble Films, including innovative solutions like Mouth Dissolving strips. Internationally, Arrow Greentech operates through subsidiaries in the UK and the Netherlands, supporting markets across Europe, Asia, North & South America, and Africa.
The company is a leader in green packaging technology specializing in the production of cast water-soluble films, bio-compostible films, and high technology products used for controlling counterfeits.
For Q1FY25, Arrow Greentech reported 116 per cent year-on-year (YoY) jump in profit after tax at Rs 20.2 crore, against Rs 93 lakh in previous year quarter. Revenue from operations grew 51 per cent YoY at Rs 66.1 crore. Earnings before interest, taxes, depreciation, and amortization (EBITDA) margin improved to 42 per cent as against 33 per cent in Q1FY24.
The company’s overall better performance in this quarter was primarily due to robust performance from high-tech products.
The management said the company is stepping into a period of strong growth. ”We’re concentrating on high-tech security products and creating solutions under the Atma-Nirbhar Bharat initiative, which will boost our revenues and export opportunities. Our dedication to the Make in India initiative shows in our active participation in government procurement tenders and our efforts to replace imports with better domestic products,” the management said.
Looking ahead to FY25, the company’s roadmap would be to increase capacity utilization and to explore global markets for niche products where competition is limited, while capitalizing on the cost advantages offered by Indian manufacturers and service providers, the management said.
First Published: Aug 05 2024 | 12:01 PM IST
