Garware Hi-Tech hits record high as Ashish Kacholia ups stake by nearly 1%

On July 29, 2021, Ashish Kacholia purchased additional 141,871 equity shares representing 0.61 per cent equity of Garware Hi-Tech Films at price of Rs 1,005 per share through bulk deal on the BSE,

Shares of Garware Hi-Tech Films were locked in the 5 per cent upper circuit band, at Rs 1,058.40 on the BSE on Friday, after investor Ashish Kacholia bought nearly one per cent additional stake in the commodity chemicals company via open market on Thursday.

On July 29, 2021, Ashish Rameshchandra Kacholia purchased 141,871 equity shares, representing 0.61 per cent equity of Garware Hi-Tech Films, at a price of Rs 1,005 per share through bulk deal on the BSE, the exchange data shows. The name of the seller, however, could not be ascertained immediately.

As on June 30, 2021, Ashish Kacholia held 600,521 sharesm or 2.58 per cent stake in Garware Hi-Tech Films, shareholding pattern data shows. On February 12, 2021, Kacholia had bought 148,000 shares at price of Rs 669.82 per share, while on May 20, 2021, he had acquired an additional 128,000 shares at price of Rs 755 per share, bulk deal data shows.

The stock was trading at its record high level and has rallied 15 per cent in the past one week. In comparison, the S&P BSE Sensex was down 0.42 per cent during the period.

Trading volumes on the counter nearly doubled with 118,000 shares having changed hands on the counter and there were pending buy orders for 27,269 shares on the BSE at 11:54 AM. Currently, Garware Hi-Tech Films is trading under the T-Group on the BSE. In the T2T segment, each trade has to result in delivery and no intra-day netting of positions is allowed.

Garware Hi-Tech Films (formerly Garware Polyester) is the flagship company of the Garware Group and a leading player in specialty polyester films in India.

For April-June quarter (Q1FY22), the company posted stellar standalone net profit growth of 134 per cent year-on-year (YoY) at Rs 36.97 crore as against Rs 15.82 crore in Q1FY21. Revenue grew 73 per cent YoY at Rs 301.66 crore. Ebitda (earnings before interest, taxes, depreciation, and amortization) margin was up by 334 basis points (bps) on YoY due to increase in revenue including specialty products.

Unique products, global patents, focus on value added films, higher share of consumer products; focus on export markets, etc. have further improved the company financial results. The company announced a capex of Rs 135 crore for the new lamination window film line to materialize the company’s aim to expand window films category across safety, architectural and front window screen glasses.

The management said the outlook for the rest of the year is promising with an anticipated incremental revenue contribution from the company’s newly launched PPF line.