Market Outlook for the Upcoming 3-Day Trading Week

With the Nifty closing above 23,111, it is expected to touch 23,555. Similarly, if the Sensex closes above 76,222, it could potentially rise to 77,444 in the coming week.

Please note:

• Markets will remain closed on Monday, April 14 for Dr. B.R. Ambedkar Jayanti and on Friday, April 18 for Good Friday.

Stock Highlight: AGI Greenpac Ltd. (BSE: 500187, NSE: AGI)

AGI Greenpac Ltd., previously known as HSIL Ltd., has a long-standing track record of consistent dividend payments and has issued five bonus shares in the past. The company is currently trading at ₹768 per share (face value ₹2), with an expected EPS of ₹51 and an estimated book value of ₹378 for FY 2025–26.

Company Background: Founded in 1960 by the Somany family as Hindustan Twyfords Ltd., the company expanded into glass bottles and containers in 1972 by acquiring Associated Glass Industries Ltd. AGI is currently the second-largest manufacturer of glass containers in India and also produces PET bottles, specialty glass, and security caps and closures.

Key Segments and Products:

1. Packaging Products Division – Includes glass containers, specialty glass, PET bottles, and closures.

2. Investment Property – Owns and leases real estate.

3. Others – Includes wind power and other miscellaneous businesses.

Manufacturing Facilities: AGI operates:

• Two glass container plants in Telangana (Sanathnagar and Bhongir)

• One specialty glass plant in Bhongir

• PET bottle facilities in Karnataka (Dharwad), Uttarakhand (Selaqui), and Telangana (Sangareddy)

• A security caps and closures plant in Sangareddy

Production Capacity:

• Glass packaging: 1,754 tons/day

• Plastic packaging: 10,256 tons/day

• Small caps: 780 million units

• Large caps: 132 million units

Clients: Top clients include Pfizer, Dabur, Dr. Reddy’s, Coca-Cola, Glenmark, Bacardi, Carlsberg, Nestlé, and Hindustan Unilever. In FY 2023, the top 10 clients contributed 56% of the total revenue.

Revenue Breakdown (FY 2024):

• 89% from glass containers

• 11% from other segments

  • Of glass container revenue: 77% from alcoholic beverages, 17% from food & beverages, and 6% from pharmaceuticals

• Geographic: 97% domestic, 3% exports

Bonus Issue History:

• 1966: 1:4

• 1970: 12:25

• 1981: 1:3

• 1988: 1:2

• 2004: 2:3
  Cumulatively, these bonus issues account for 33.56% of total equity.

Dividend History:

• 2020: 150%

• 2021: 200%

• 2022: 250%

• 2023: 250%

• 2024: 300%

Book Value (₹):

• Mar 2022: ₹215

• Mar 2023: ₹248

• Mar 2024: ₹280

• Estimated Mar 2025: ₹327

• Estimated Mar 2026: ₹378

Shareholding Pattern:

• Promoters (Somany family): 60.24%

• Mutual funds/institutions: 0.88%

• FPI/FIIs: 11.81%

• Corporate bodies: 4.16%

• HNIs: 8.37%

• Retail investors: 14.54%

Financial Highlights:

1. FY 2023–24 (Apr 2023 – Mar 2024):

   • Revenue: ₹2,445 crore

   • Net profit: ₹251 crore

   • Net profit margin (NPM): 10.27%

   • EPS: ₹38.85

2. First 9 Months of FY 2024–25 (Apr–Dec 2024):

   • Revenue: ₹1,862 crore (1.62% YoY growth)

   • Net profit: ₹226 crore (20.85% YoY growth)

   • NPM: 12.14%

   • EPS: ₹34.90

3. Full-Year Estimate FY 2024–25:

   • Revenue: ₹2,535 crore (3.7% growth)

   • Net profit: ₹309 crore

   • NPM: 12.20%

   • EPS (estimated): ₹47.80

4. Full-Year Estimate FY 2025–26:

   • Revenue: ₹2,688 crore (6% growth)

   • Net profit: ₹330 crore

   • NPM: 12.27%

   • EPS (estimated): ₹51

Valuation Insight:

• The stock trades at ₹768 (NSE/BSE)

• Expected EPS: ₹51

• Expected Book Value: ₹378

• PE Ratio: 14.9 vs. Industry Average PE of 24

Disclaimer:
The author holds no investment in AGI Greenpac Ltd. The data used is for research purposes and may include direct or indirect interests. Please consult a qualified financial advisor before making any investment decisions. The author, publication, or any other party will not be responsible for any potential losses.