Piramal Glass - Molded for future - Systematix

Piramal Glass (PGL) is in business of glass packaging for cosmetics and perfumery (C&P), specialty food and beverages (SFB), and pharmaceuticals. It has second-largest capacity in the world for C&P - 550 tpd, and is one of top ten players in C&P glass packaging business with over 6% global market share. Also, it boasts of 88% SFB market share in Srilanka and 35% pharma market share in India.

PGL's high operating margins are attributable to >50% revenue from high margin C&P packaging. We believe focus on C&P and continued improvement in SFB business will yield significant benefits in the longer run with sustainable entry barriers and profit margins.

We initiate our coverage on PGL with a ‘BUY' rating.

Source : Equity Bulls

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