Bullish on Ganesh Ploytex: Prakash Diwan

Prakash Diwan, Head - Institutional Business, Networth Stock Broking, in an interview with ET Now talks about Ganesh Polytex.

Ganesh Polytex, why do you like it, what's the target, what's the rationale?

This is one of those offbeat companies not yet in the news for all the good reasons, it is actually one of those few players that's into Green Technology. They primarily recycle PET bottles into PFY and that's a segment, which is very new to us but with the consumption of PET bottle itself reaching the critical mass, then you have the supplies for a player like this. They have scaled up their operations very quietly, discreetly and now they are looking at standards, economies of scale, which could make it extremely profitable. In any case there is a 15% differential when you recycle PET and sell it as PFY, so that's the advantage this company has and it is likely to also attract some investments from green funds, private equity funds, which are scouting opportunities in India, so it is a great story, the target is pretty aggressive. I would not be surprised if it reaches a double digit mark but in the interim next 3-6 months probably a 75-78 level is imminent.