A small-cap multibagger stock, which has surged more than 200 per cent in the past five years, cracked in Thursday’s trade following a review by CARE Ratings. Glass manufacturer Agi Greenpac Ltd, formerly known as HSIL Ltd, dived 10.25 per cent today to hit a day low of Rs 344.10 over its previous close of Rs 383.40.
The company, in an exchange filing, said, “The Rating Committee of CARE has reviewed the existing ratings.” For long-term bank facilities of Rs 1,107 crore, a CARE A+ (RWN) rating has been assigned. And, for short-term bank facilities of Rs 250 crore, a CARE A1+ (RWN) rating has been placed. As per CARE, RWN stands for “Placed on Rating Watch with Negative Implications.”
Prior to this, Agi Greenpac received approval from the Competition Commission of India (CCI) to acquire Hindustan National Glass & Industries.
“Fair trade regulator CCI has accorded its approval to the proposed combination under sub-section (1) of Section 31 of the Competition Act, 2002. The detailed order of CCI is awaited,” the company stated.
At today’s low price of Rs 344.10, the stock has fallen 15.55 per cent from its 52-week high level of Rs 407.45, hit on September 23 last year. That said, the counter has surged 92.50 per cent from its one-year low of Rs 178.75, touched on June 20, 2022.
On the earnings front, the company’s net profit jumped 86.35 per cent to Rs 53.09 crore in December 2022 quarter (Q3 FY23) against Rs 28.49 crore recorded in the same period a year ago.
Around 55,000 shares changed hands today on BSE, which was nearly triple compared to the two-week average volume of 20,000 shares. Turnover on the counter stood at Rs 1.96 crore, commanding a market capitalisation (m-cap) of Rs 2,294.82 crore.
On the technical front, the stock was last seen trading higher than the 20-day, 50-, 100- and 200-day moving averages but lower than the 5-day moving averages. The counter’s 14-day relative strength index (RSI) came at 50.93. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company’s stock has a price-to-equity (P/E) ratio of 8.85. Agi Greenpac’s earnings per share (EPS) came at 43.34.
The stock has a one-year beta of 1.57, indicating high volatility.
The company forayed into the container glass business in 1981, with the acquisition of ‘The Associated Glass Industries Ltd’ (AGI). It is one of the leading manufacturers of glass containers in India, with the capability of using diverse fuel options and product applications across downstream sectors. Agi Greenpac diversified into the manufacturing of PET bottles with the acquisition of Garden Polymers Pvt Ltd (GPPL) in 2011.
Meanwhile, Indian equity benchmarks slipped into the red in late deals today as losses in technology and state-owned lenders countered gains in consumer goods and metal stocks.
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