One quick information on relative valuation for Glass packaging company in India,
Piramal Glass was taken over in late 2020 by Blackstone for a $1 Billion deal. FY20 full year EBITDA was 624.2 Cr. So late 2020 exchange rate , INR 74 per dollar. 11.8 times to EBITDA was provided in the deal. AGI Greenpac is having TTM EBITDA at Q2 FY24 at 552 cr. AGI valuation should comes to 6500 cr at same multiple of 11.8 times , AGI is trading at almost 1000 Cr discount. Which is justified as Piramal has better margin and speciality business than AGI. But AGI margin is also increasing and hitting 20%+ region and cashflow getting deployed to reduce debt yoy.
Piramal Glass is now known as PGP Glass. It had FY19 consolidated EBITDA margin of 17% , FY20 24.2% and latest FY22 EBITDA margin of 24.08%. Like AGI , PGP currently operate 1600 TPD facility.
Cosmetic and Perfumery(C&P) is its main segment. C&P accounts for 40% of the total revenues.Pharmaceuticals packaging contributing 25% of revenue , Specialty,Food & Beverages segment contributed 34%. Piramal Glass before takeover was a world renowned company on glass packaging , every third nailpolish bottle manufaturer in the world.
[Invested]
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