Company Overview:
The company is engaged in the business of developing biodegradable (green) products and high-tech products. They are the Largest Manufacturer of Water Soluble Films in India. The company has the strong R&D facilities for developing materials that are environmentally safe & fully biodegradable. The company has the wide distribution channel with global Presence in Europe, Asia, North & South America and Africa with mainly 3 supply points located in India, United Kingdom and South America. This is Arrow Greentech Limited, let’s read more about this…
Products:
► Water Soluble Films-Development, Production & Marketing of Wide Range of Water Soluble Films
► Security Products-include Anti-counterfeit products for use in high security papers and brand protections etc.
► Avery Pharma-A 100% wholly-owned subsidiary of Arrow Greentech Limited, the company is committed to the cause of enhancing patient outcomes with a novel approach to oral drug administration, via its Mouth Dissolving Strips (MDS)
► KlenzPro-The most concentrated range of hygiene products which are supplied in water-soluble capsules, without generating plastic waste
►Bioplast-The bio-compostable film is an eco-friendly alternative to replace single-use plastic for our future generations.
What Is Water Soluble Film (WSF)?
► Packaging material that is environmentally safe & fully biodegradable when disposed in water. Let us see its applications and properties:
Product Features:
Let’s have a look at the product features:
Key metrics:
Let’s have a look at the main key metrics of the company:
| Current Price | Rs 579 |
| Market Cap | Rs 873Cr |
| PE | 29.8 |
| PEG | 0.99 |
| Debt to Equity | 0..01 |
| Operating Profit Margin | 31.2% |
| Book Value | Rs 84.1 |
| Promoter Shareholding | 68.6% |
| DII Holding | 0.00% |
| FII Holding | 1.28% |
F24 Financial Highlights:
► YoY Revenue growth :36%
► YoY EBIDTA growth :97%
► YoY PAT growth :138%
► YoY EPS growth :140%
Q4 Financial Highlights:
► QoQ revenue growth : 5%
► QoQ EBIDTA growth : -16%
► QoQ PAT growth : -22%
► QoQ EPS growth : 100%
Positives:
► 3Y Compounded sales growth of 42%.
► 3Y Compounded profit growth of 70%.
► 31 Patents granted across Globe including the India, UK, USA, South Africa, Europe, Eurasia and Russia
► Inhouse R&D facility.
► Innovation is focused on green and high-tech products.
► Niche products and market position.
► Manufacturing of anti-counterfeit products for use in high security papers, brand protection etc.
► Manufacturer and supplier of high innovative products such as MDS “Mouth Dissolving Strips” in which active ingredients are released at a precise – controlled rate.
Negatives:
► Average results for the last quarter
Future Prospects:
The future prospects of water-soluble films are great, this will be driven by increasing environmental awareness and the demand for sustainable packaging solutions. Water Soluble Films is expected to reach a $517mn market by the end of 2028 at a CAGR of 5.8% and packaging at a CAGR of 8.3% as per the company presentation.
These films, made from polyvinyl alcohol (PVA) and other biodegradable polymers, offer an eco-friendly alternative to traditional plastic packaging with wide range of applications. The rise of e-commerce and the push for zero-waste packaging further enhance their appeal. With this future business company can keep on creating wealth for its investors if the management follows as per the guidance they have given for the future.
The Multibagger takeaway:
As we seek to reduce their carbon footprint, water-soluble films are expected to find broader applications in sectors such as agriculture, pharmaceuticals, and consumer goods. In agriculture, they can be used for controlled-release fertilizers and pesticides, while in pharmaceuticals, they offer innovative drug delivery systems. With ongoing advancements in material science improving their strength, solubility, and functional properties, water-soluble films are poised to become a big name in the packaging industry, supporting the global shift towards more sustainable practices. Arrow Greentech offers the investors the opportunity to participate in this future proof business.
Disclaimer:
We are not a SEBI registered analyst, IndianMultibaggers will not be responsible for any loss in future. Please do your own research and consult your financial advisor before taking any investment decision. The prices and data may vary according to the market forces at the time of reading this article.
Index to research links:
https://www.screener.in/company/ARROWGREEN/consolidated
https://www.bseindia.com/xml-data/corpfiling/AttachHis/b885c54c-439e-4d23-a3a7-0d0a4f88eb77.pdf
https://www.arrowgreentech.com
https://www.screener.in/company/ARROWGREEN/consolidated