₹25 Cr Capex: Avro India shares in focus after commissioning India’s largest plastic recycling hub

Synopsis: Avro India stock gained attention after commissioning India’s largest flexible plastic recycling plant with Rs 25 crore capex, diversifying into regulated waste-to-wealth and offering recycled pellets up to 40% cheaper.

The shares of this company, which specialises in transforming plastic waste into plastic granules and furniture, leveraging advanced recycling technologies and having a fully integrated model, processing plastic scrap in-house to produce granules, had its shares in the spotlight after the company launched India’s largest flexible plastic recycling unit with 500 MTPM capacity. 

With the market cap of Rs 154 crore, the shares of Avro India Ltd closed at Rs 115.4. The shares are trading at a PE of 39, whereas their industry PE is at 38.4. The shares have given a return of 48% since April 2022. 

About the recycling unit. 

Avro India‘s move to launch this unit is a significant move for diversification from plastic-moulded furniture to massive sustainable materials through the inauguration of the largest flexible plastic recycling plant in India at an initial capacity of 500 metric tonnes per month through their wholly owned subsidiary, AVRO Recycling Limited. At the initial stage, the greenfield project at Ghaziabad received Rs 25 crore of capex support. Subsequent spending of Rs 30 crore will follow in FY27. 

In this light, it is clear that Avro is placed within the organised waste-to-wealth segment, which has a growing need given the increasing environmental regulations. Operationally, the principal distinguishing factor is the in-house technology developed by Avro, which is capable of handling challenging-to-recycle flexible plastics such as cement, salt, sugar, and putty bags, which have either been processed in the unorganised sector or were discarded. After more than three years of R&D, the company claims the capability to upcycle waste on an industry scale of close to 1 million metric tonnes a year in India. 

The pellets made from this recycling process are utilised for manufacturing furniture, home appliances, automotive parts, and industry-use objects and are priced up to 40 per cent lower than conventional plastic.

Financials

The revenue from operations for the company stood at Rs 21 crores in Q2 FY26 compared to Q1 FY26 revenue of Rs 21.67 crores, up by about 3 per cent QoQ. Similarly, the net profit also grew from Rs 1.05 crore in Q1 FY26 to Rs 1.21 crore in Q2 FY26.

Avro India Limited is a renowned plastic moulded furniture company with over two decades of business history and support from an automated manufacturing division in Ghaziabad. Cost leadership emerges as the major competitive advantage for the company because of its products being priced 40% lower than the rest of the national players, along with the highest quality standards.

Avro’s extensive nationwide reach, through its presence on major e-commerce websites and in more than 20,000 outlets, along with their use in all possible sectors of the institution and household markets, makes it one of the major players in the top five domestic players in the entire nation and the largest in the North.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post ₹25 Cr Capex: Avro India shares in focus after commissioning India’s largest plastic recycling hub appeared first on Trade Brains.