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Last Updated on: 15 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 530001 | NSE: GUJALKALI

Gujarat Alkalies & Chemicals Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 11, 2024, 12:14 pm

Market Cap 5,962 Cr.
Current Price 812
High / Low900/645
Stock P/E
Book Value 842
Dividend Yield0.00 %
ROCE3.83 %
ROE3.88 %
Face Value 10.0
PEG Ratio0.00

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

View Share Price Target for Gujarat Alkalies & Chemicals Ltd

Competitors of Gujarat Alkalies & Chemicals Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Caprolactam Chemicals Ltd 23.9 Cr. 52.065.9/43.0 11.60.00 %6.86 %3.67 % 10.0
Standard Industries Ltd 172 Cr. 26.939.0/20.243.9 20.13.91 %6.83 %6.28 % 5.00
Gujarat Alkalies & Chemicals Ltd 5,962 Cr. 812900/645 8420.00 %3.83 %3.88 % 10.0
Tata Chemicals Ltd 27,927 Cr. 1,0961,350/93345.6 8711.37 %7.81 %2.32 % 10.0
Chemfab Alkalis Ltd 1,434 Cr. 1,0041,230/35165.2 2790.12 %11.2 %7.88 % 10.0
Industry Average8,873.75 Cr598.1851.57404.741.08%7.31%4.81%9.00

All Competitor Stocks of Gujarat Alkalies & Chemicals Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales7168261,0751,1411,1281,1271,1231,1389139719211,002977
Expenses590684709792778969885936882955941998923
Operating Profit1271423663493511592382023116-20454
OPM %18%17%34%31%31%14%21%18%3%2%-2%0%6%
Other Income152237622681271533
Interest211123881011111211
Depreciation47495052506079888995969797
Profit before tax93113317303305118157115-57-18-123-102-50
Tax %32%34%37%27%37%49%44%38%0%-0%-6%-55%-11%
Net Profit6375201221191618771-57-18-115-46-45
EPS in Rs8.6010.1527.4230.0525.998.2411.879.67-7.78-2.50-15.68-6.29-6.06

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales1,9952,0702,4553,1612,7252,4293,7594,5163,8073,871
Expenses1,6601,6221,6692,0462,1482,0722,7743,5683,7753,817
Operating Profit3354487861,1155773579849493154
OPM %17%22%32%35%21%15%26%21%1%1%
Other Income455610662906746429082
Interest1013152114156194545
Depreciation107111127140162174198276377385
Profit before tax2623817491,016491235826695-300-294
Tax %16%19%29%32%32%29%32%41%-21%
Net Profit220307534690332166560410-237-224
EPS in Rs29.9041.8572.7893.9845.2222.5776.2255.78-32.25-30.53
Dividend Payout %15%12%9%9%18%35%13%42%-43%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)39.55%73.94%29.21%-51.88%-50.00%237.35%-26.79%-157.80%
Change in YoY Net Profit Growth (%)0.00%34.40%-44.73%-81.10%1.88%287.35%-264.14%-131.02%

Gujarat Alkalies & Chemicals Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 8 years from 2016-2017 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:%
5 Years:4%
3 Years:16%
TTM:-6%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:%
TTM:-371%
Stock Price CAGR
10 Years:15%
5 Years:14%
3 Years:5%
1 Year:8%
Return on Equity
10 Years:%
5 Years:5%
3 Years:4%
Last Year:-4%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 11:38 pm

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital73737373737373737373
Reserves2,8543,2823,7484,2224,5225,3015,8266,0666,0026,112
Borrowings295353291247205498594597544603
Other Liabilities6717268599881,0901,2821,4841,5991,4041,625
Total Liabilities3,8944,4354,9705,5315,8917,1547,9778,3358,0238,413
Fixed Assets1,8212,0732,1042,3002,6102,5872,7024,2504,6174,491
CWIP831512523074451,1091,78754495157
Investments8541,0161,1451,0651,2422,0922,1101,8312,0932,377
Other Assets1,1361,1961,4691,8581,5941,3661,3791,7101,2181,388
Total Assets3,8944,4354,9705,5315,8917,1547,9778,3358,0238,413

Reserves and Borrowings Chart

Cash Flow

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +20150251483863042173596067
Cash from Investing Activity +-352-467-395-581-634-334-804-662-90
Cash from Financing Activity +8413-116-136-14622612-140-277
Net Cash Flow-67493122-150313-58158-301

Free Cash Flow

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow40.0095.00495.00-246.00372.00-141.00390.00352.00-513.00

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 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days605860565043292317
Inventory Days999414799928810111193
Days Payable9912515413412611110111986
Cash Conversion Cycle602753221721291525
Working Capital Days908399961072081618
ROCE %11%18%24%11%5%13%11%-4%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters46.28%46.28%46.28%46.28%46.28%46.28%46.28%46.28%46.28%46.28%46.28%46.28%
FIIs1.48%1.52%1.82%2.05%1.98%2.07%2.07%1.98%1.88%2.07%2.10%1.92%
DIIs1.66%1.63%1.68%1.63%1.47%1.45%1.51%1.51%1.96%2.17%3.13%3.46%
Public50.58%50.58%50.22%50.04%50.27%50.19%50.13%50.22%49.88%49.49%48.48%48.34%
No. of Shareholders77,22781,47477,77387,42887,08385,35484,09785,39388,02086,69882,71979,560

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
ICICI Prudential Regular Savings Fund75,0470.185.9631,2632024-11-12140.05%
Motilal Oswal Nifty Microcap 250 Index Fund31,2630.182.4831,2632024-11-120%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)-32.2555.7876.2222.5745.22
Diluted EPS (Rs.)-32.2555.7876.2222.5745.22
Cash EPS (Rs.)33.38115.99103.4646.4667.36
Book Value[Excl.RevalReserv]/Share (Rs.)827.28835.97803.30731.86625.79
Book Value[Incl.RevalReserv]/Share (Rs.)827.28835.97803.30731.86625.79
Revenue From Operations / Share (Rs.)518.33615.01511.82330.82371.00
PBDIT / Share (Rs.)30.79157.51140.6057.9690.89
PBIT / Share (Rs.)-20.60119.92113.6734.2168.86
PBT / Share (Rs.)-26.67117.27112.8332.1166.94
Net Profit / Share (Rs.)-18.0178.3976.5222.7245.32
NP After MI And SOA / Share (Rs.)-32.2555.7876.2222.5745.22
PBDIT Margin (%)5.9325.6127.4717.5124.49
PBIT Margin (%)-3.9719.4922.2010.3418.55
PBT Margin (%)-5.1419.0622.049.7018.04
Net Profit Margin (%)-3.4712.7414.956.8612.21
NP After MI And SOA Margin (%)-6.229.0614.896.8212.18
Return on Networth / Equity (%)-3.896.679.483.087.22
Return on Capital Employeed (%)-2.0711.7511.523.849.42
Return On Assets (%)-2.954.917.012.315.63
Long Term Debt / Equity (X)0.050.070.090.080.02
Total Debt / Equity (X)0.080.090.100.080.03
Asset Turnover Ratio (%)0.460.550.490.370.47
Current Ratio (X)1.471.681.491.782.60
Quick Ratio (X)0.911.131.011.412.15
Inventory Turnover Ratio (X)3.806.456.976.166.40
Dividend Payout Ratio (NP) (%)0.0017.9210.4935.4417.69
Dividend Payout Ratio (CP) (%)0.0010.707.7517.2711.89
Earning Retention Ratio (%)0.0082.0889.5164.5682.31
Cash Earning Retention Ratio (%)0.0089.3092.2582.7388.11
Interest Coverage Ratio (X)5.0759.43168.0027.5347.54
Interest Coverage Ratio (Post Tax) (X)-1.9730.5892.4311.7924.71
Enterprise Value (Cr.)5324.554435.116873.062607.271735.82
EV / Net Operating Revenue (X)1.400.981.831.070.63
EV / EBITDA (X)23.553.836.666.132.60
MarketCap / Net Operating Revenue (X)1.300.951.751.040.60
Retention Ratios (%)0.0082.0789.5064.5582.30
Price / BV (X)0.810.701.120.470.35
Price / Net Operating Revenue (X)1.300.951.751.040.60
EarningsYield-0.040.090.080.060.20

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Gujarat Alkalies & Chemicals Ltd as of November 15, 2024 is: 499.84

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 November 15, 2024, Gujarat Alkalies & Chemicals Ltd is Overvalued by 38.44% compared to the current share price 812.00

Default values used*: Default value of 15 for Stock P/E is used

Intrinsic Value of Gujarat Alkalies & Chemicals Ltd as of November 15, 2024 is: 225.00

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 November 15, 2024, Gujarat Alkalies & Chemicals Ltd is Overvalued by 72.29% compared to the current share price 812.00

Default values used*: Default value of 15 for Stock P/E is used

Last 5 Year EPS CAGR: -54.98%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (4,793.50 cr) compared to borrowings (422.70 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (2.50 cr) and profit (304.60 cr) over the years.
  1. The stock has a low average ROCE of 9.89%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 59.67, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 29.89, which may not be favorable.

Stock Analysis

  • 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 Gujarat Alkalies & Chemicals Ltd:
    1. Net Profit Margin: -3.47%
      • 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: -2.07% (Industry Average ROCE: 7.31%)
      • 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%: -3.89% (Industry Average ROE: 4.81%)
      • 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): -1.97
      • 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: 0.91
      • 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: 0 (Industry average Stock P/E: 51.57)
      • 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: 0.08
      • 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

Gujarat Alkalies & Chemicals Ltd. is a Public Limited Listed company incorporated on 29/03/1973 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L24110GJ1973PLC002247 and registration number is 002247. Currently company belongs to the Industry of Chemicals - Inorganic - Caustic Soda/Soda Ash. Company’s Total Operating Revenue is Rs. 3758.74 Cr. and Equity Capital is Rs. 73.44 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Chemicals - Inorganic - Caustic Soda/Soda AshP.O.: Ranoli Vadodra District Gujarat 391350investor_relations@gacl.co.in
http://www.gacl.com
Management
NamePosition Held
Dr. Hasmukh AdhiaChairman
Mr. P SwaroopManaging Director
Mr. Rajiv Lochan JainIndependent Director
Mr. Nitin ShuklaIndependent Director
Mr. Shridevi ShuklaIndependent Director
Dr. Rahul GuptaDirector
Mr. Bimal JulkaIndependent Director
Dr. Chinmay GhoroiIndependent Director

FAQ

What is the latest intrinsic value of Gujarat Alkalies & Chemicals Ltd?

The latest intrinsic value of Gujarat Alkalies & Chemicals Ltd as on 14 November 2024 is ₹499.84, which is 38.44% lower than the current market price of ₹812.00.

What is the Market Cap of Gujarat Alkalies & Chemicals Ltd?

The Market Cap of Gujarat Alkalies & Chemicals Ltd is 5,962 Cr..

What is the current Stock Price of Gujarat Alkalies & Chemicals Ltd as on 14 November 2024?

The current stock price of Gujarat Alkalies & Chemicals Ltd as on 14 November 2024 is ₹812.

What is the High / Low of Gujarat Alkalies & Chemicals Ltd stocks in FY 2024?

In FY 2024, the High / Low of Gujarat Alkalies & Chemicals Ltd stocks is 900/645.

What is the Stock P/E of Gujarat Alkalies & Chemicals Ltd?

The Stock P/E of Gujarat Alkalies & Chemicals Ltd is .

What is the Book Value of Gujarat Alkalies & Chemicals Ltd?

The Book Value of Gujarat Alkalies & Chemicals Ltd is 842.

What is the Dividend Yield of Gujarat Alkalies & Chemicals Ltd?

The Dividend Yield of Gujarat Alkalies & Chemicals Ltd is 0.00 %.

What is the ROCE of Gujarat Alkalies & Chemicals Ltd?

The ROCE of Gujarat Alkalies & Chemicals Ltd is 3.83 %.

What is the ROE of Gujarat Alkalies & Chemicals Ltd?

The ROE of Gujarat Alkalies & Chemicals Ltd is 3.88 %.

What is the Face Value of Gujarat Alkalies & Chemicals Ltd?

The Face Value of Gujarat Alkalies & Chemicals 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 Gujarat Alkalies & Chemicals 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