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Last Updated on: 22 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo

GHCL Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 21, 2024, 2:32 am

Market Cap 6,283 Cr.
Current Price 656
High / Low 760/435
Stock P/E11.8
Book Value 331
Dividend Yield1.83 %
ROCE20.6 %
ROE17.3 %
Face Value 10.0
PEG Ratio0.55

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for

Competitors of

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Caprolactam Chemicals Ltd 23.9 Cr. 52.0 64.8/43.0 11.60.00 %6.86 %3.67 % 10.0
Standard Industries Ltd 176 Cr. 27.3 39.0/20.244.8 20.13.85 %6.83 %6.28 % 5.00
Gujarat Alkalies & Chemicals Ltd 5,463 Cr. 744 900/645 8420.00 %3.83 %3.88 % 10.0
GHCL Ltd 6,283 Cr. 656 760/43511.8 3311.83 %20.6 %17.3 % 10.0
Tata Chemicals Ltd 26,211 Cr. 1,029 1,350/93342.8 8711.46 %7.81 %2.32 % 10.0
Industry Average7,933.60 Cr597.2242.30392.451.21%9.52%6.89%9.17

All Competitor Stocks of

Quarterly Result

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales8077087216988031,0051,0531,1481,3811,1021,1191,017805
Expenses647527530540634756723789947735771719592
Operating Profit159180191158169249330359434367348298213
OPM %20%26%26%23%21%25%31%31%31%33%31%29%26%
Other Income101851920125412814-223211
Interest241616151515151011101087
Depreciation33292828293022223222272426
Profit before tax112154152134144216348455392339309497191
Tax %25%23%27%23%24%25%22%19%25%26%27%14%25%
Net Profit84118111103110163272369293252227426143
EPS in Rs8.8912.3811.7010.8011.5317.0728.5238.5630.6026.3823.7044.6014.94

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1,9582,2542,2012,3562,5312,7842,9193,3413,3052,4913,0524,5454,043
Expenses1,6021,8471,7671,8281,9012,1032,3132,5822,5761,8862,3223,0482,817
Operating Profit3564074345286296816077597296057301,4971,226
OPM %18%18%20%22%25%24%21%23%22%24%24%33%30%
Other Income9-50-26-15-33738161618211124245
Interest21317918317116513712712712074513935
Depreciation1068282858286110117131111879499
Profit before tax46961432573804954075314954378021,4891,337
Tax %3%26%24%29%32%23%13%34%20%25%19%23%
Net Profit44711091822583803563513973266501,1421,048
EPS in Rs4.457.1410.8518.1925.7838.0436.5935.7741.7534.3368.14119.41109.62
Dividend Payout %45%28%18%12%0%13%14%14%7%16%22%15%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)61.36%53.52%66.97%41.76%47.29%-6.32%-1.40%13.11%-17.88%99.39%75.69%
Change in YoY Net Profit Growth (%)0.00%-7.84%13.45%-25.21%5.53%-53.60%4.91%14.51%-30.99%117.27%-23.69%

has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:5%
5 Years:1%
3 Years:11%
TTM:-20%
Compounded Profit Growth
10 Years:16%
5 Years:11%
3 Years:22%
TTM:-40%
Stock Price CAGR
10 Years:26%
5 Years:31%
3 Years:23%
1 Year:16%
Return on Equity
10 Years:23%
5 Years:22%
3 Years:24%
Last Year:17%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 11:41 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital100100100100999798959595969696
Reserves4674876709361,2471,5131,8272,0542,3892,8523,8602,8833,078
Borrowings1,5581,4861,3241,3651,4631,3221,3021,254782788361210175
Other Liabilities7559417585486946957677667121,261816581544
Total Liabilities2,8803,0142,8512,9493,5043,6283,9954,1693,9784,9955,1333,7703,893
Fixed Assets1,8751,8691,9342,0492,4102,5022,5912,6642,6752,4741,7311,8421,867
CWIP321273726741171228121310955105
Investments572159101291517380420572
Other Assets9671,1259098481,0591,0431,2751,3751,2072,2922,9141,4531,349
Total Assets2,8803,0142,8512,9493,5043,6283,9954,1693,9784,9955,1333,7703,893

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +484452416509458590530624621643856797
Cash from Investing Activity +-175-117-127-249-375-279-271-206-109-337-409-571
Cash from Financing Activity +-315-323-296-252-113-308-258-339-569-98-530-338
Net Cash Flow-613-88-302180-57209-83-112

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow356.00406.00433.00527.00628.00680.00606.00758.00728.00-177.00-58.00-360.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days466338263629323033271819
Inventory Days160227193194187182199198245294177185
Days Payable1752331551101071091061021211075363
Cash Conversion Cycle325776110117101125126158214142141
Working Capital Days4032312342395556911285858
ROCE %15%17%22%25%24%19%21%19%16%19%36%21%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters19.07%19.07%19.03%19.03%19.05%19.05%19.06%19.06%19.03%19.04%19.03%19.03%
FIIs16.31%15.42%18.50%22.40%24.38%25.09%26.04%25.27%24.66%24.99%24.76%25.70%
DIIs19.04%19.08%15.59%11.82%11.06%10.79%10.78%9.68%8.60%8.29%9.29%9.79%
Public45.58%46.43%46.89%46.74%45.50%45.06%44.12%45.99%47.70%47.67%46.91%45.45%
No. of Shareholders70,52169,0441,06,2651,08,13194,47993,00995,2021,00,2981,06,5021,12,8591,09,1131,07,047

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
DSP Small Cap Fund3,115,0101.53181.081,640,4162024-12-1989.89%
DSP Tax Saver Fund1,640,4160.8295.361,640,4162024-12-190%
Franklin India Smaller Companies Fund1,499,4720.987.161,640,4162024-12-19-8.59%
UTI Aggressive Hybrid Fund541,8590.6631.51,640,4162024-12-19-66.97%
UTI Large & Mid Cap Fund228,8630.6713.31,640,4162024-12-19-86.05%
UTI Retirement Fund206,7070.312.021,640,4162024-12-19-87.4%
Motilal Oswal Nifty Microcap 250 Index Fund74,8860.944.351,640,4162024-12-19-95.43%
Groww Nifty Total Market Index Fund1720.030.011,640,4162024-12-19-99.99%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)83.43120.0667.8934.3240.50
Diluted EPS (Rs.)83.33120.0667.8934.2340.50
Cash EPS (Rs.)93.61129.2880.3648.3755.56
Book Value[Excl.RevalReserv]/Share (Rs.)311.17413.83324.73261.47226.18
Book Value[Incl.RevalReserv]/Share (Rs.)311.17413.83324.73261.47226.18
Revenue From Operations / Share (Rs.)360.06475.51397.68305.24347.87
PBDIT / Share (Rs.)94.00159.03104.3269.8078.47
PBIT / Share (Rs.)83.33149.1792.0355.7664.67
PBT / Share (Rs.)103.58153.0585.3446.1652.06
Net Profit / Share (Rs.)82.94119.4268.0734.3241.74
NP After MI And SOA / Share (Rs.)82.94119.4268.0734.3241.74
PBDIT Margin (%)26.1033.4426.2322.8622.55
PBIT Margin (%)23.1431.3723.1418.2618.58
PBT Margin (%)28.7632.1821.4515.1214.96
Net Profit Margin (%)23.0325.1117.1111.2412.00
NP After MI And SOA Margin (%)23.0325.1117.1111.2412.00
Return on Networth / Equity (%)26.6528.8520.9613.1218.45
Return on Capital Employeed (%)23.7631.9722.9715.9319.01
Return On Assets (%)21.0622.2312.948.199.51
Long Term Debt / Equity (X)0.030.060.130.220.37
Total Debt / Equity (X)0.060.080.240.240.50
Asset Turnover Ratio (%)0.770.890.840.690.79
Current Ratio (X)4.304.691.821.711.37
Quick Ratio (X)2.733.541.030.530.52
Inventory Turnover Ratio (X)1.551.491.751.481.68
Dividend Payout Ratio (NP) (%)20.9612.498.080.0019.54
Dividend Payout Ratio (CP) (%)18.5711.546.840.0014.68
Earning Retention Ratio (%)79.0487.5191.920.0080.46
Cash Earning Retention Ratio (%)81.4388.4693.160.0085.32
Interest Coverage Ratio (X)35.3339.3115.597.276.22
Interest Coverage Ratio (Post Tax) (X)23.5627.9010.414.584.31
Enterprise Value (Cr.)3948.485021.665717.822744.151812.81
EV / Net Operating Revenue (X)1.151.101.510.940.54
EV / EBITDA (X)4.393.305.774.142.43
MarketCap / Net Operating Revenue (X)1.231.061.380.750.25
Retention Ratios (%)79.0387.5091.910.0080.45
Price / BV (X)1.421.221.690.880.39
Price / Net Operating Revenue (X)1.231.061.380.750.25
EarningsYield0.180.230.120.140.47

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of as of December 22, 2024 is: 688.07

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of December 22, 2024, is Undervalued by 4.89% compared to the current share price 656.00

Intrinsic Value of as of December 22, 2024 is: 834.60

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 22, 2024, is Undervalued by 27.23% compared to the current share price 656.00

Last 5 Year EPS CAGR: 21.30%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 21.17%, which is a positive sign.
  2. The company has higher reserves (1,866.38 cr) compared to borrowings (1,030.00 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (2.46 cr) and profit (314.69 cr) over the years.
  1. The stock has a high average Working Capital Days of 54.42, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 116.58, which may not be favorable.
  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in :
    1. Net Profit Margin: 23.03%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 23.76% (Industry Average ROCE: 9.52%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 26.65% (Industry Average ROE: 6.89%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 23.56
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 2.73
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 11.8 (Industry average Stock P/E: 28.2)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.06
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

GHCL Ltd. is a Public Limited Listed company incorporated on 14/10/1983 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L24100GJ1983PLC006513 and registration number is 006513. Currently Company is involved in the business activities of Manufacture of basic chemicals, fertilizer and nitrogen compounds, plastics and synthetic rubber in primary forms. Company’s Total Operating Revenue is Rs. 3778.36 Cr. and Equity Capital is Rs. 95.35 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Chemicals - Inorganic - Caustic Soda/Soda AshGHCL House, Opp. Punjabi Hall, Ahmedabad Gujarat 380009ghclinfo@ghcl.co.in
http://www.ghcl.co.in
Management
NamePosition Held
Mr. Anurag DalmiaNon Executive Chairman
Mr. R S JalanManaging Director
Mr. Raman ChopraExecutive Director (Finance) & CFO
Mr. Neelabh DalmiaExecutive Director
Justice(Retd) Ravindra SinghIndependent Director
Mr. Arun Kumar JainIndependent Director
Dr. Manoj VaishIndependent Director
Mrs. Vijaylaxmi JoshiIndependent Director

FAQ

What is the latest intrinsic value of ?

The latest intrinsic value of as on 22 December 2024 is ₹688.07, which is 4.89% higher than the current market price of ₹656.00. The stock has a market capitalization of 6,283 Cr. and recorded a high/low of 760/435 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹3,078 Cr and total liabilities of ₹3,893 Cr.

What is the Market Cap of ?

The Market Cap of is 6,283 Cr..

What is the current Stock Price of as on 22 December 2024?

The current stock price of as on 22 December 2024 is 656.

What is the High / Low of stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of stocks is 760/435.

What is the Stock P/E of ?

The Stock P/E of is 11.8.

What is the Book Value of ?

The Book Value of is 331.

What is the Dividend Yield of ?

The Dividend Yield of is 1.83 %.

What is the ROCE of ?

The ROCE of is 20.6 %.

What is the ROE of ?

The ROE of is 17.3 %.

What is the Face Value of ?

The Face Value of is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in . Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE