Ganesh Polytex Ltd.Ganesh Polytex Ltd.- Ganesh Polytex Ltd, the Largest PET waste recycler in India manufactures Recycled/

Speciality Polyester Staple Fibre (Fibrefill) through recycling of post-consumer pet bottle waste. Company has a capacity to produce 57,600 tonnes per annum (TPA) of Recycled waste. Company has a capacity to produce 57,600 tonnes per annum (TPA) of Recycled

Polyester Stale fibre, which is more than Reliance Industries Limited’s capacity. “Business Insight” stock for the month of May 2010

Best Buying Price…

2 Phase Buying Strategies Suggested [Always buy in SIP ways]

1st Phase : Buy at the current price range Rs 50-54 [60% of investment]1st Phase : Buy at the current price range Rs 50-54 [60% of investment]

2nd Phase : Add if the price falls down to Rs 40- 44 [40% of investment]

>>>Expect at least 8-10 times return in next 2 years time frame!!!

Table of Contents

From the Desk of CEO, HBJ Capital – (Page – 5#)Overview : Ganesh Polytex Ltd – (Page – 7#)Ganesh Polytex – Waste Recycling Company– (Page – 12#)Ganesh Polytex – Waste Recycling Company– (Page – 12#)Ganesh Polytex – Product Category – (Page – 17#)Ganesh Polytex – Expansion Plans (Page – 24#) Forward Revenue Estimates & Financial Statements – (Page – 28#) The Management – (Page – 33#) Shareholding Pattern – (Page – 35#) Buying Strategy – (Page – 38#) Investment Rationale – (Page – 41#) Risks and Concerns – (Page – 43#)

From the desk of CEO, HBJ CapitalFrom the desk of CEO, HBJ CapitalDear Investors,

The use of Plastic products has been a major cause ofconcern since long. We have seen people, organizationsclamoring about reducing the usage of Plastic products.

These days as we move across streets, parks, etc, we seemany PET bottles littered around giving not just a badlook but also posing serious threats to our environment.

PET is one of the fastest growing segments in plastics

Dear Investors,

The use of Plastic products has been a major cause ofconcern since long. We have seen people, organizationsclamoring about reducing the usage of Plastic products.

These days as we move across streets, parks, etc, we seemany PET bottles littered around giving not just a badlook but also posing serious threats to our environment.

PET is one of the fastest growing segments in plastics

Non Bio

India and would like to share the same.

Non Bio-Degradable waste, especially the PET bottles pose serious threats to our

environment. Considering the humongous growth in

consumption, there successful recycling is extremely

important. I have selected the Largest PET bottles recycler in India and would like to share

the same.

PET is one of the fastest growing segments in plasticsproviding a hygienic, durable and user friendlypackaging solution for all kind of bottled drinks,beverages, liquor, pharmaceuticals, chemicals, and otherliquid products.

As the consumption of PET is growing, so as the quantumof its waste is increasing at rapid pace. PET bottle wastebeing Non-Biodegradable, its recycling is inevitable elsepiling of it will be the biggest threat to the environment.

PET is one of the fastest growing segments in plasticsproviding a hygienic, durable and user friendlypackaging solution for all kind of bottled drinks,beverages, liquor, pharmaceuticals, chemicals, and otherliquid products.

As the consumption of PET is growing, so as the quantumof its waste is increasing at rapid pace. PET bottle wastebeing Non-Biodegradable, its recycling is inevitable elsepiling of it will be the biggest threat to the environment.

Contd.. Taking note of the mentioned factors we have selected “Ganesh Polytex Ltd” (GANPOLY) as our BI pick for

the month of May 2010.

Ganesh Polytex Ltd is a waste management company & is one of The Largest PET Waste Recycler in India

HBJ Capital & MPS is proud to bring you the “Business Insight” pick of the month – Ganesh Polytex ltd.

Company Business model is interesting as it transforms post-consumer pet bottle waste (which is otherwisehazardous for environment being non bio-degradable in nature) back again into environmental friendly,hygienic, and comfortable fibers which are more economical in comparison to virgin fibers.

The company has charted out aggressive capex plans for the next three years. We expect the company’simpressive business module coupled with aggressive expansion plans to translate into healthy growth withincreased profitability in the near future.

Happy Investing!

Regards,Kumar Harendra, CEO, HBJ Capital Services Pvt Ltd, www.hbjcapital.com, #141, 5th Main, Girinagar, BSK 3rd Stage, Bangalore – 85 Call : 098867 36791 or Mail : Info@hbjcapital.com

Overview – Ganesh Polytex Ltd

Ganesh Polytex Ltd – Overview

Basic Details..

Ganesh Polytex Ltd (GPL). was incorporated as a Public Limited company in the year 1988. At PresentCompany is the largest PET waste recycling company with prominent presence in recycled Polyester StapleFibre (RPSF) and largest to recycle PET bottle waste in the country, with forward integration to manufactureRPFY.

The company is having two production units:

o One at Raipur, Rania, Kanpur Dehat (U.P) which is on the main highway- Kanpur Jhansi Road.o Second unit, where the company has done major expansions, is located at Rudrapur (Uttarakhand).

This unit is entitled for exemption from Central Excise and Income Tax for a period of 10 years.

The company went into diversification in the year 1994 to produce Regenerated Polyester Staple Fiber inIndia. This was the first venture of its type in India to produce PSF from polyester waste & bottle flakes.

In the year 2006, the second unit at Rudrapur (Uttarakhand) was set up with a production capacity of 6000MT per annum which was subsequently increased by installing three more lines. The total aggregate capacityof the Kanpur & Rudrapur plant is 4800 MT per month or 57600 MT per annum.

Milestones..Year Achievements

1987-88 Incorporation and commencement of business

1989 Creation of Dyeing and Doubling facilities for 360 TPA

1991 First public issue of 2.10 lakh shares and Capacity expansion Dyeing 1080 MT

1992-93 Creation of Texturising capacity – 216 spindles

1993-94 Rights issue of 34.50 lakh shares

1994-95 Expansion of Dyeing capacity to 1150 TPA.1994-95 Expansion of Dyeing capacity to 1150 TPA.

1996-07 Expansion of Dyeing capacity to 1800 TPA and recycled PSF to 10800 TPA. Equity Capital expanded to Rs.9.37 crore

2007-08 Set up Rudrapur Unit for recycled PSF with an capacity of 21600 TPA and Expanded dyeing capacity to 2400 TPA.

2008-09 Expanded Capacity of Kanpur Unit for RPSF to 18000 TPA.Equity Capital expanded to Rs.9.87 Crores

Some key stats.. CMP = Rs 51.15 (May 27th 2010) – The stock is

in the uptrend phase & is looking strong oncharts as it is making new top highs & topbottoms.

52 week’s high/low = Rs 54/7.6 –The stockrecently made a new 52 week high. As it is inthe strong bullish phase it can continue to makenew highs.

Peak share price = Rs 54 (7th April ‘2010) –Always when the stock reaches its life time high it goes into a strong bullish phase in the absence of any resistance present, and at cmp Ganesh Polytex is very close to its life time

PE = 7.69 Going forward, the revenue is expected toincrease multi-fold due to the major capacity expansion.At present the company commands very low multiple onaccount of low visibility. However, it should be able tocommand a very high multiple once the investorsunderstand the business model.

Shareholdings : No Of shares [% Share Holding ] Total Foreign: 0.3lakhs [0.3%] Total Institutions: 0.1 lakh [0.1%] Total Non Promoter Corporate Holding 25.1lacs [20.3%]

Total Promoters 0.586 crore [47.6%]Ganesh Polytex is very close to its life time peak of 54.

Trading volume = Min 0.46 lacs shares (approx)per day –These are early days for a companywhich is soon going to create a huge impact inthe Waste Recycling sector. The stock is liquidThis shall help investors to get in and out ofstock easily.

EPS = Rs 6.50 – The company is expected to endthe FY 2009-10 with a net profit of Rs 8-9 croreon the equity base of Rs 12.3 crore, culminatinginto an EPS of Rs 6.5

[20.3%] Total Promoters 0.586 crore [47.6%] Total Public & others 39.2lacs [31.8%] Total Outstanding Shares 1.23crore [100 %]

Debt/Equity = 2 [Mar’10] ROCE = 14.2% [Mar’10] ROE = 17.6% [Mar’10] Current Ratio = 1.0 [Mar’10] Delivered Volume per day = Approx 58% BSE Code 514167

Ganesh Polytex -Waste Recycling Company

Waste Recycling company.. Ganesh Polytex Ltd is the largest PET waste recycling

company with prominent presence in recycled PolyesterStaple Fibre (RPSF) and largest to recycle PET bottle wastein the country, with forward integration to manufactureRPFY.

Ganesh Polytex is market leader in this segment ofmanufacturing of Recycled polyester staple fibre (RPSF)& has been in the field of Recycled PSF for over 15 years.

Besides procuring the Waste from vendors, the companyhas set up its own procurement centers in different cities toBesides procuring the Waste from vendors, the companyhas set up its own procurement centers in different cities toinsulate itself from raw material shortage as well as pricefluctuations.

Finished product finds application for spinning of yarn,stuffing in toys and other life style products like pillows,quilts, mattresses and furniture, non-woven carpets andfabrics, medical & packaging textile, geo textile, fur fabrics,construction and paper industry and other technicaltextile.

Raw Material..

The major raw material required for Recycled PSF is post- consumer PET bottle waste.

PET is one of the fastest growing segments in plastics providing a hygienic, durable and user friendlypackaging solution for all kind of bottled drinks, beverages, pharmaceuticals, liquor, chemicals, and otherliquid products.

As the consumption of PET is growing, so as the quantum of its waste is increasing.

PET bottle waste is non bio-degradable in nature (takes thousands of years in decomposing) and hence, posesa serious threat to soil, water sources and forests and thus harmful for human being and other livingcreatures. Therefore, its recycling is inevitable else piling of it will be the biggest threat to the environment.

Region PET Resin Capacity Demand

Global 17.5 million tonnes 14.0 million tonnes

India 0.80 million tonnes 0.40 million tones and the rest is being exported due to price advantage

Increase in consumption of PET bottles

Domestic demand of PET is expected to grow to 0.50 million tonne by 2010.

With life style changes and higher disposable income, demand of PET bottles is set to grow at much fasterpace as the per capita PET consumption in India is 0.22 kg. as compared to the world average of 2.1 kg. in2008.

As per industry estimates, about 65% of PET bottles consumption is available for recycling. That means,indigenous availability of PET bottle waste would be 3.0 lakh tone during 2010, which is much more than theoverall requirement of entire domestic recycling capacity (aggregate installed capacity of about 1.75 lakh tonper annum during 2010) in the country.

The consumption of PET bottles is expected to grow to 0.60 million tonne by 2012, availability of waste willalso increase correspondingly.

The present installed capacity of Recycled PSF in India is about 1.63 lakh tonne, Ganesh Polytex Ltd has acapacity of 57600 MT per annum & is at the first position in the sector.

Collection of Raw Material.. Availability of Raw material is almost free of cost, but the critical

issue is collection of waste and transportation / processing cost.

Ganesh Polytex Ltd. is in this line of business since last 15 years andhas a well-streamlined network of its collection centers (operatingon franchisee module) of PET waste spread all over the Country atstrategic locations.

It has also developed a network of traders over the periods whoexclusively supply the material to the Company.

Further there is huge possibility of imports of PET bottle waste fromforeign countries and this avenue is still to be tapped by theCompany as imported bottles are little bit costly due totransportation factor. In case of need, the company may plan to setup a raw material processing /washing unit in near future at Europeor USA, where abundant quantity of raw material is available.

Company also uses other types of polyester waste viz. Wasteundrawn fibre, POY/ PFY waste, polyester film waste etc., which isalso available in small quantities.

Ganesh Polytex- Product Category

Product Category..Ganesh Polytex Products Category

Dyed Texturised / Twisted Filament Yarn

Post Consumer PET bottle Waste and POY/FDY and Grey Texturised Yarn

Raw Material Used

Recycled Polyester Staple Fibre (RPSF)

Post Consumer PET bottle Waste and other kind of industrial Waste of Polyester

POY/FDY and Grey Texturised Yarn

Application/ End use

Textile Sector : Spun Yarn; Hosiery Yarn etc.Industrial Sector – Filter Fabrics; Geo textile;Non-woven carpets and Fabrics; Medical andpackaging textile etc.

Fabrics, Saree, Dress Material,Upholstery and furnishing fabrics,Sewing Threads, Cords etc.

Recycled Polyester Staple Fibre (RPSF).. Ganesh Polytex (GPL) product includes low-end basic segment to mid

and high-end premium segment.

Recycled PSF replaces 100% virgin PSF in textile sector due to its mostdistinctive advantage of cost-effectiveness and it replaces Foam,Cotton, P.P. fibre etc. in other industrial sectors due to its durability,comforts and hygienic characteristics besides cost-effectiveness.

Polyester has now become common man’s fabrics in terms of prices,durability and comforts in comparison to cotton and other fibres.

With growth in the economy and growing middle class, the per capitaconsumption of polyester fabric is also set to increase both for clothingand non-clothing applications. In fact, with growing per capita incomeconsumption of non-clothing fabric will grow at much faster rate thanclothing fabric.

As Recycled Polyester Fibre is suitable both for clothing and non-clothing applications, its demand is improving both in textile andindustrial sector. This bodes well for GPL as it has strong presence inboth the sectors.

Market Demand & Industry Scenario..

Major User Industry Of Recycled PSF

Non-woven/technical textile Yarn spinning Stuffing

Non-woven/Technical textile..

Textile for non-clothing applications is classified in non-woven and technical textiles, which are growingroughly at twice rate of textiles for clothing applications and now account for major chunk in total textileproduction.

The large Indian population of over one billion with nearly 48% in the age group of 18-35 and 250 millionstrong middle class which has high purchasing power and living standards presents a potential huge marketstrong middle class which has high purchasing power and living standards presents a potential huge marketfor non-woven products & with the Indian economy poised for a rapid growth of more than 8% during thenext five years, non-woven production and consumption is expected to see rapid growth.

Areas of non-woven applications like infrastructure, automotive textiles, carpets, interlinings and wading,furnishings and beddings, agricultural textiles, medical textiles, sports textiles etc are already seeing a lot ofactivity and are bound to grow at rapid rate in order to catch up with the developed world.

The market size of technical/non-woven textile in India grew from Rs.31,000 crore during 2003-04 to Rs.44,000Crore during 2007-08. Further, as per an internal document prepared by the textile ministry, it is estimatedthat the technical textile market would grow to Rs.78,060 Cr. by 2014–15 with an annual growth rate of 14%.

Yarn spinning..

Recycled PSF is used in yarn spinning in replacement of virgin grade PSF, which is about 15% costlier thatrecycled PSF.recycled PSF.

Recycled PSF can be used 100% in coarse counts of yarn (up to 30 count – which account for almost 40% ofthe total yarn consumption in India), and for fine counts (above 30, which are mostly used in apparels &wearing cloths), it is blended with virgin grade PSF.

Due to cost & sale price equation as well as growing demand for non-apparels fabric, use of virgin grade PSFis being replaced by Recycled PSF.

This has opened up a large window for Recycled PSF in spinning sector because present domestic marketsize of coarse denier spun yarn is about 4.00 lakh tonne per annum.

Stuffing..

With improvement in life style and urbanization coupled withincreasing disposable income, use of home furnishingproducts like quilts, comforters, mattresses, pillows, furnitureetc. is increasing and growth in their market size is in doubledigit.

Traditionally these products were stuffed with cotton, foam,coir etc. with increasing prices and decreasing availability,cotton is almost out for such uses.

Recycled PSF is now being preferred over other traditional Recycled PSF is now being preferred over other traditionalproducts like foam and coir because of its inherent qualitieslike hygiene, wash-ability, light-weight and user friendlycharacteristics.

Likewise there is phenomenal growth in market of soft toys,where there is no substitute of Recycled PSF in stuffing.

Estimated market size of all these products in India is overRs.15,000 crore.

Ganesh Polytex Ltd- Expansions Plans

Players In Recycled Polyester Staple Fibre…Rank Company In this Sector (RPSF) Place Present Capacity

MTPA1. Ganesh Polytex Ltd Kanpur &

Rudrapur57600

2. Reliance Industries Ltd Hazira 42000

3. Shiva Tex Fab (P) Ltd Ludhiana 180004. Rishiraj Filaments Ltd - 120005. Allainz Fibres Gujrat 60006. Arora Fibres Ltd Silvassa 60007. Himalaya Fibres Baddi (H.P) 60008. K.K.Fibres Baddi (H.P) 60009. Capital Fibres (P) Ltd - 600

10. Nirmal Fibres Gajraula (U.P)

3600

TOTAL 1,63,200 MTPA

Economies of Scale…

Ganesh Polytex Ltd. has the largest capacity in the industry, which has enabled the company to optimize perunit cost of production and ward off the competition due to economics of scale.

Since the product is replacement of downstream virgin PET product market, it has ever increasing demandfrom both - the replacement market and growing uses from consumer market.from both - the replacement market and growing uses from consumer market.

PET recycling has drawn the attention of many big business houses including Reliance Industry. Companywould not be affected by the presence of large players like Reliance because of enough wide market andmultiple uses.

Rather their presence is beneficial for the development of down stream consumption of recycled PET andproducts .

Ganesh Polytex Ltd is having the largest product range in the industry on the one hand and source of rawmaterial (PET bottle waste) is open market which can’t be influenced.

Expansion Plans..

GANESH POLYTEX LTD is encouraged to expand its production to match with the demand and diversifyinto forward integration for value added products. Company has a ambitious growth plans which includesenhancing the recycling capacity to over 100,000 TPA in stages over the next 2 years.

Aggressive Capex Plans Over The Next Three Years.

Ganesh Polytex has charted out expansion plan with a capital outlay of Rs.850millions over the nextthree years. The company shall invest Rs.250millions for ramping up of Recycled PSF capacities by14,400 MT/pa. The project shall be operational in FY11.

The company has expanded additional capacity of Recycled Polyester Staple Fiber (RPSF) by 18,000TPA at Rudapur with an estimated cost of Rs.250mn.

The company has also firmed up plans to set up a facility for manufacturing Recycled PartiallyOriented Yarn (POY) as a part of forward integration for value added product. The plant will have acapacity of 18000MT/pa and shall entail an investment of Rs.350 millions. The new facility shall beoperational in FY12.

Forward Revenue Estimates & Financial Statements

Revenue forecast.. FINANCIAL MATRIX 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

Actual ProjectionsNet Sales (Cr) 51.94 62.67 105.42 135.37 190 234 400

Other Income (Cr) 0.2 0.33 0.38 0.08 0 0 0

EBDITA (Cr) 5.77 7.01 12.35 17.1 26 35 75

EBDITA Margin (%) 11.1 11.18 11.71 12.63 14 15 17

CAGR Growth (%) 28.25% 35%

Depreciation (Cr) 1.4 1.81 3.6 5.66 7 10 17

PAT (Cr) 1.46 1.89 3.75 4.35 9 13 30

PAT margin(%) 2.81 3.01 3.55 3.21 4.35 9 13PAT margin(%) 2.81 3.01 3.55 3.21 4.35 9 13

Cash Generation (Cr) 2.86 3.7 7.35 10.01 16 23 47

Equity Share Capital (Cr) 9.37 9.37 9.86 9.86 9.86 13.38 19

Net worth (Cr) 14.2 15.99 20.2 23.98 31 48 108

Total Borrowing (Cr) 14.19 27.91 46.6 61.35 82 68 82

Gross Block (Cr) 32.45 47.29 66.97 85.83 111 116 175

Debt Equity Ratio 0.36 0.78 1.11 1.29 1.37 0.66 0.51

EPS (Rs) 1.57 2.03 3.62 4.35 8.01 8.78 15

Book Value (Rs) 15.16 17.07 20.5 24.33 31.7 35.86 54

RONW(%) 9.92 11.5 16.33 16.26 25.29 24.46 27.36

Income Statement(Last 4 years) The Company’s sales and net

profits have grown at healthycompound annual growth rate(CAGR) of 28% and 30%respectively in the past fouryears.

The Revenue and Profitabilitygrew exponentially from Rs 52crore to Rs 135 crore and Rs1.47 crore to Rs 4.35 crorerespectively.respectively.

Its EBIDTA improved to Rs.10.91 crore in FY08-09 from Rs.4.77 crore in FY06 on the backof improved product mix.

Growth plans are likely to propel CAGR of 35-40% in its top and bottom lines during next five years.

Quarterly Results In FY 2008-09 the company recorded revenue of

Rs 136 crore, while the company has alreadyrecorded revenue in excess of Rs 136 crore for 9months ending Dec’09.

The net profit for the Nine months ending Dec’09stands at about Rs 5.89 crore which is alreadyhigher than Rs 4.35 for the entire previous fiscal.

In the December’09 quarter, sales grew by 39% toRs.52.56 crore. EBIDTA rose by 33% to Rs.6.16crore. Net profit grew by 169% to Rs.2.85 crore.Rs.52.56 crore. EBIDTA rose by 33% to Rs.6.16crore. Net profit grew by 169% to Rs.2.85 crore.

The company is likely to close this fiscal reporting40% growth in revenues along with 52% rise inEBIDTA and 105% rise in net profits.

The company should be able to record a net EPSof Rs 7, while at CMP range of Rs 48 - 52, it isavailable extremely cheap at a P/E multiple ofapprox. 6-7.

Balance Sheet (Last 6 years)

For the last 5 years the Gross Block of the company has witnessed continuous expansion from Rs 28 crore toRs 85 crore. The company has been expanding its capacity on a consistent basis enabling the company reporthigher sales and profitability.

As per the projected estimates, the company intends to bring down its Debt/Equity ratio to almost 0.5 in thenext two years, while it will still continue with capacity expansion through internal accruals and limitedequity dilution.

The Management

Ganesh Polytex Ltd.- Management

Management..

Mr. Shyam S. Sharma - Chairman and Managing Director - He is a textile engineer. Served the Birla Group Mr. Shyam S. Sharma - Chairman and Managing Director - He is a textile engineer. Served the Birla Groupfor 25 years in various senior positions and promoted the said company in the year 1987. He is well versedwith the fibre and textile technology with an experience of more than 45 years.

Mr. V.D Khandelwal - Executive vice president - He is a post graduate in commerce and having experienceof more than 36 years in trading of different types of textile yarns. He is one of promoter director of thecompany and looking after the affairs of the company since inception.

Mr. Sharad Sharma - Joint Managing Director - He is a commerce graduate and having more than 17 yearsin marketing of yarns and fibre. He is engaged with the company since 1992.

Shareholding Pattern

Shareholding– Promoters & Non-Promoters

At the end of Mar’ 10 the Promoter holding stands at 47.55%, which is reasonable and the increase in stakefurther reflects the confidence of the management in the prospects of the company.

The Promoter’s have been increasing their stake consistently for the last 5 quarters.

The total Paid-up Equity Share Capital of the Company has been enhanced from Rs. 9,85,50,000/- to Rs.12,32,00,000/- because of allotment of 24.65 lakhs Equity Shares to the Promoters and Others, consequentupon the exercise of conversion option of warrants.

Mar’10 – Promoters and Non - Promoters An early entry into this

stock, can give huge returns, with major institutions coming in later, thereby giving exposure to the company.

As the largest player in the segment among all big players like Reliance and Sector being highly scalable, company should scalable, company should be able to command higher multiples.

As the Promoter are consistently increasing their holding in the company, this shows the faith they have in the long term prospect of the company.

Buying Strategy

Uptrend Pattern…

Huge volumes coupled with increase in share price, strong bullish sign

The stock is in the uptrend phase & is looking strong on charts as it is making new (top) highs & bottoms.

As illustrated in the chart , the stock price of Ganesh Polytex was dull & underperformed for a long period of time , but as the company started churning out good number & successfully completed its capacity expansion program , the stock reacted positively to it.

The recent highs scaled by the company have been backed by larger volumes, thus validating the recentupward move.

Near Lifetime high…

Stock Price is Moving upwards and is

As illustrated in the chart, the stock price has been moving upwards and is currently inside a channel.

Increase in share price comes along with the higher volumes , immediate support comes at around 43.

The stock price is very near to its lifetime high of 54, when the stock reaches its life time high it goes into astrong bullish phase in the absence of any resistance.

Stock Price is Moving upwards and is currently inside a channel.

Investment Rationale

Investment Rationale

The company is the leader in its area of operations and recently surpassed the annual production capacity of Reliance Industries Ltd.

The investors lack the understanding of the Business Model of the company. Once the investors realize the true potential and the main area of operation i.e. Waste Recycling, the stock will command very high true potential and the main area of operation i.e. Waste Recycling, the stock will command very high multiples.

The company is contemplating a change in the name of the company to reflect the true operations. A change in name will lead to better visibility and a change in perception, which will result in Re-rating.

The company has chalked out an aggressive expansion for the next two years, which will not only increase the profitability and sales but also result in margin expansion.

Based on the Projected income and sales, the company is available at low valuations thereby ensuring safety of margin.

Risks and Concerns

Risks & Concerns…Risks:-

A change in the manufacturing technology of PET bottles may affect the company’s ability to recycle the waste

Availability of Raw material is almost free of cost, but the critical issue iscollection of waste and transportation / processing cost.

Concerns:-

The strong performance in the past is not a bullish sign and doesn't indicate the The strong performance in the past is not a bullish sign and doesn't indicate the same or better performance in the future. Each year is different from the previous one!

Do not let representative bias win over your common sense! Always do your homework and do not forget to do a research before you invest your money!

As and when there is a change in the Government, there might be a change in its policies too. Any adverse changes in its policies may affect the business operations of the company

DisclaimerThis document is not for public distribution and has been

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The recommendation made herein does not constitute an offer to sell or solicitation to buy any of the securities mentioned. No representation can be made that recommendation contained herein will be profitable or that they will not result in loss. Information obtained is deemed to be reliable but do not or that they will not result in loss. Information obtained is deemed to be reliable but do not guarantee its accuracy and completeness. Readers using the information contained herein are solely responsible for their action.

HBJ Capital, or its representative will not be liable for the recipient’s investment decision based on this report. HBJ Capital, officers, directors, employees or its affiliates may or may not hold positions in the companies /stocks mentioned herein.