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Last Updated on: 30 May, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of GHCL Ltd

About the Company - GHCL Ltd

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. Sanjay DalmiaNon Executive Chairman
Mr. Anurag DalmiaNon Executive Vice Chairman
Mr. R S JalanManaging Director
Mr. Raman ChopraExecutive Director (Finance) & CFO
Mr. Neelabh DalmiaExecutive Director
Dr. Lavanya RastogiIndependent Director
Mrs. Vijaylaxmi JoshiIndependent Director
Justice(Retd) Ravindra SinghIndependent Director
Mr. Arun Kumar JainIndependent Director
Dr. Manoj VaishIndependent Director

Basic Stock Data of GHCL Ltd

Last Updated: May 30, 2024, 5:52 am

Market Cap 5,025 Cr.
Current Price 524
High / Low660/435
Stock P/E8.13
Book Value 311
Dividend Yield3.34 %
ROCE21.2 %
ROE17.8 %
Face Value 10.0
PEG Ratio0.38

GHCL Ltd Quarterly Results

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

GHCL Ltd Quarterly Chart

GHCL Ltd Profit & Loss

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%

GHCL Ltd Profit & Loss Yearly Chart

GHCL Ltd Growth

Compounded Sales Growth
10 Years:5%
5 Years:1%
3 Years:11%
TTM:-24%
Compounded Profit Growth
10 Years:17%
5 Years:12%
3 Years:23%
TTM:-43%
Stock Price CAGR
10 Years:29%
5 Years:16%
3 Years:27%
1 Year:4%
Return on Equity
10 Years:23%
5 Years:22%
3 Years:24%
Last Year:18%

Last Updated: May 23, 2024, 3:27 pm

GHCL Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital1001001001001009997989595959696
Reserves3824674876709361,2471,5131,8272,0542,3892,8523,8602,652
Borrowings1,7951,5581,4861,3241,3651,4631,3221,3021,254782788361282
Other Liabilities6897559417585486946957677667121,261816535
Total Liabilities2,9672,8803,0142,8512,9493,5043,6283,9954,1693,9784,9955,1333,565
Fixed Assets2,0671,8751,8691,9342,0492,4102,5022,5912,6642,6752,4741,7311,796
CWIP40321273726741171228121310942
Investments9572159101291517380481
Other Assets8509671,1259098481,0591,0431,2751,3751,2072,2922,9141,246
Total Assets2,9672,8803,0142,8512,9493,5043,6283,9954,1693,9784,9955,1333,565

GHCL Ltd Reserves and Borrowings Chart

GHCL Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 399484452416509458590530624621643856
Cash from Investing Activity -39-175-117-127-249-375-279-271-206-109-337-403
Cash from Financing Activity -360-315-323-296-252-113-308-258-339-569-98-536
Net Cash Flow1-613-88-302180-57209-83

GHCL Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days414663382636293230332718
Inventory Days144160227193194187182199198245294177
Days Payable14417523315511010710910610212110753
Cash Conversion Cycle41325776110117101125126158214142
Working Capital Days35403231234239555691128167
ROCE %11%15%17%22%25%24%19%21%19%16%19%36%

GHCL Ltd Financial Efficiency Indicators Chart

GHCL Ltd Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters19.18%19.07%19.07%19.07%19.03%19.03%19.05%19.05%19.06%19.06%19.03%19.04%
FIIs17.23%16.61%16.31%15.42%18.50%22.40%24.38%25.09%26.04%25.27%24.66%24.99%
DIIs20.91%19.49%19.04%19.08%15.59%11.82%11.06%10.79%10.78%9.68%8.60%8.29%
Public42.68%44.83%45.58%46.43%46.89%46.74%45.50%45.06%44.12%45.99%47.70%47.67%
No. of Shareholders65,06870,64170,52169,0441,06,2651,08,13194,47993,00995,2021,00,2981,06,5021,12,859

GHCL Ltd Shareholding Pattern Chart

No. of GHCL Ltd Shareholders

GHCL Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
DSP Small Cap Fund3,115,0101.53181.08
DSP Tax Saver Fund1,640,4160.8295.36
Franklin India Smaller Companies Fund1,499,4720.987.16
UTI Aggressive Hybrid Fund541,8590.6631.5
UTI Large & Mid Cap Fund228,8630.6713.3
UTI Retirement Fund206,7070.312.02
Motilal Oswal Nifty Microcap 250 Index Fund74,8860.944.35
Groww Nifty Total Market Index Fund1720.030.01

GHCL Ltd ROCE Trend

GHCL Ltd EPS Trend

GHCL Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)120.0667.8934.3240.5035.81
Diluted EPS (Rs.)120.0667.8934.2340.5035.50
Cash EPS (Rs.)129.2880.3648.3755.5647.69
Book Value[Excl.RevalReserv]/Share (Rs.)413.83324.73261.47226.18196.42
Book Value[Incl.RevalReserv]/Share (Rs.)413.83324.73261.47226.18196.42
Revenue From Operations / Share (Rs.)475.51397.68305.24347.87340.85
PBDIT / Share (Rs.)159.03104.3269.8078.4779.05
PBIT / Share (Rs.)149.1792.0355.7664.6767.12
PBT / Share (Rs.)153.0585.3446.1652.0654.13
Net Profit / Share (Rs.)119.4268.0734.3241.7435.76
NP After MI And SOA / Share (Rs.)119.4268.0734.3241.7435.76
PBDIT Margin (%)33.4426.2322.8622.5523.19
PBIT Margin (%)31.3723.1418.2618.5819.69
PBT Margin (%)32.1821.4515.1214.9615.88
Net Profit Margin (%)25.1117.1111.2412.0010.49
NP After MI And SOA Margin (%)25.1117.1111.2412.0010.49
Return on Networth / Equity (%)28.8520.9613.1218.4518.20
Return on Capital Employeed (%)31.9722.9715.9319.0122.79
Return On Assets (%)22.2312.948.199.518.77
Long Term Debt / Equity (X)0.060.130.220.370.36
Total Debt / Equity (X)0.080.240.240.500.57
Asset Turnover Ratio (%)0.890.840.690.790.88
Current Ratio (X)4.691.821.711.371.12
Quick Ratio (X)3.541.030.530.520.42
Inventory Turnover Ratio (X)1.491.751.481.681.91
Dividend Payout Ratio (NP) (%)12.498.080.0019.5413.90
Dividend Payout Ratio (CP) (%)11.546.840.0014.6810.42
Earning Retention Ratio (%)87.5191.920.0080.4686.10
Cash Earning Retention Ratio (%)88.4693.160.0085.3289.58
Interest Coverage Ratio (X)39.3115.597.276.226.09
Interest Coverage Ratio (Post Tax) (X)27.9010.414.584.313.75
Enterprise Value (Cr.)5021.665717.822744.151812.813496.92
EV / Net Operating Revenue (X)1.101.510.940.541.05
EV / EBITDA (X)3.305.774.142.434.51
MarketCap / Net Operating Revenue (X)1.061.380.750.250.72
Retention Ratios (%)87.5091.910.0080.4586.09
Price / BV (X)1.221.690.880.391.26
Price / Net Operating Revenue (X)1.061.380.750.250.72
EarningsYield0.230.120.140.470.14

GHCL Ltd Profitability Ratios (%)

GHCL Ltd Liquidity Ratios

GHCL Ltd Liquidity Ratios (%)

GHCL Ltd Interest Coverage Ratios (%)

GHCL Ltd Valuation Ratios

Fair Value

Fair Value: ₹465.09

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.

Overvalued: 11.24% compared to the current price ₹524

Intrinsic Value: ₹564.14

Calculation basis:

  • Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 7.66% compared to the current price ₹524

Last 5 Year EPS CAGR: 21.30%

*Investments are subject to market risks

Strength and Weakness of GHCL Ltd Stock

StrengthWeakness
  1. The stock has a high average ROCE of 20.33%, which is a positive sign.
  2. The company has higher reserves (1,641.23 cr) compared to borrowings (1,160.15 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 61.58, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 108.25, which may not be favorable.

FAQ

What is the latest fair value of GHCL Ltd?

The latest fair value of GHCL Ltd is ₹465.09.

What is the Market Cap of GHCL Ltd?

The Market Cap of GHCL Ltd is 5,025 Cr..

What is the current Stock Price of GHCL Ltd as on 30 May 2024?

The current stock price of GHCL Ltd as on 30 May 2024 is ₹524.

What is the High / Low of GHCL Ltd stocks in FY 2024?

In FY 2024, the High / Low of GHCL Ltd stocks is 660/435.

What is the Stock P/E of GHCL Ltd?

The Stock P/E of GHCL Ltd is 8.13.

What is the Book Value of GHCL Ltd?

The Book Value of GHCL Ltd is 311.

What is the Dividend Yield of GHCL Ltd?

The Dividend Yield of GHCL Ltd is 3.34 %.

What is the ROCE of GHCL Ltd?

The ROCE of GHCL Ltd is 21.2 %.

What is the ROE of GHCL Ltd?

The ROE of GHCL Ltd is 17.8 %.

What is the Face Value of GHCL Ltd?

The Face Value of GHCL Ltd 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 GHCL Ltd. 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