The US-based Distributor American Natural Soda Ash Corporation, On June 10, 2024, hiked export prices by US$25.00/MT on all non-contract sales of soda ash, and on contracted sales when contracts allow, effective from July 1, 2024.
According to analysts at Emkay Research, prices of soda ash fell by 21 percent in the March quarter of fiscal year 2023-24 (Q4FY24) from a year ago. This decline is attributed to lower demand due to falling caustic soda prices making it more appealing for the silicate market.
Following the price hikes made by the American Natural Soda Ash Corporation, Listed below are some of the leading producers of Soda Ash, that can also join the race and benefit by increasing the prices and taking hold of the opportunity.
Tata Chemicals
Tata Chemicals Limited is engaged in the business of manufacturing and exporting basic chemistry and specialty products. It has a strong market share in the global soda ash industry, with a presence in India, North America, Europe, and Africa and a diversified product profile divided into basic chemistry products and specialty products segments.
It is the third largest soda ash producer globally, with over two-thirds of its capacity being natural soda ash translating into cost-effective production. It is also the 6th largest producer of sodium bicarbonate in the world and one of the leading agri-services and crop-protection chemical companies in India.
With a market capitalization of Rs. 28,480 Crores, the shares of Tata Chemicals Limited were trading at Rs. 1,117.95 per equity share, up 2.91percent from its previous day’s close price of Rs. 1,086.35.
Its Revenue from operations declined by 21.15 percent from Rs. 4,407 Crores in Q4FY23 to Rs. 3,475 Crores in Q4FY24, accompanied by a profit of Rs. 692 Crores to a loss of Rs. 841 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 2.32 percent and a return on capital employed (ROCE) of 7.81. It has reported a debt-to-equity ratio of 0.25.
DCW
DCW is engaged in the manufacture and sale of chemicals, such as soda ash, caustic soda, synthetic rutile, and others. It has a diversified portfolio with over 12 products and a distribution network spanning over 12 countries with a major presence in the United States, Europe, Japan, Malaysia, and the Netherlands.
With a market capitalization of Rs. 1,628 Crores, the shares of DCW Limited were trading at Rs. 55.16 per equity share, up 3.18 percent from its previous day’s close price of Rs. 53.46.
Its Revenue from operations grew by 5.7 percent from Rs. 588.14 Crores in Q4FY23 to Rs. 621.69 Crores in Q4FY24, accompanied by profits of Rs. 35.35 Crores to Rs. 15.33 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 1.59 percent and a return on capital employed (ROCE) of 6.66. It has reported a debt-to-equity ratio of 0.43.
GHCL
GHCL Limited is one of the leading producers and suppliers of Soda Ash, it also manufactures soda ash, a raw chemical for detergents, glass and ceramic industries, and sodium bicarbonate (baking soda).
In addition, the Company also manufactures refined baking soda, which is a raw material for industries like bakery, pharma, fire extinguisher manufacturing, and cleaning agents.
With a market capitalization of Rs. 5,014 Crores, the shares of GHCL Limited were trading at Rs. 523.65 per equity share, up 1.76 percent from its previous day’s close price of Rs. 514.60.
Its Revenue from operations declined by 26.43 percent from Rs. 1,119.2 Crores in Q4FY23 to Rs. 823.38 Crores in Q4FY24, accompanied by profits of Rs. 226.55 Crores to Rs. 124.86 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 17.8 percent and a return on capital employed (ROCE) of 21.2. It has reported a debt-to-equity ratio of 0.07.
Written by: Bharath K.S
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
