Ethanol stock engaged in manufacturing and supplying ethanol, fructose, sorbitol, and various other industrial chemicals jumped upto 17 percent in the day’s trade upon receiving ethanol supply orders worth Rs. 993.95 Crores.
Price Action
With a market capitalization of Rs. 1,432 Crores, the shares of Gulshan Polyols Limited were trading at Rs. 229.65 per equity share, up 16 percent from its previous day’s close price of Rs. 197.80.
What Happened
Gulshan Polyols Limited had earlier participated in a tender floated by the Oil Marketing Companies (OMCs) under the Ethanol Blended Petrol Programme (EBPP) for supplying ethanol for the Ethanol Supply Year (ESY 24-25).
Following this, Gulshan Polyols Limited was awarded a work order from Oil Marketing Companies (OMCs) like Bharat Petroleum Corporation Limited (BPCL), Indian Oil Corporation Limited (IOCL) and Hindustan Petroleum Corporation Limited (HPCL).
Out of the availed tender Gulshan Polyols Limited has been allocated a work order/tender to supply ~1.43 Lakh Kiloliters of Ethanol for an estimated value of Rs. ~993.95 Crores.
About the Company
Gulshan Polyols Limited is a multi-product manufacturing company, it has a global presence in 35+ countries and it mainly operates in 3 business segments namely Grain Processing, Ethanol (bio-fuel)/distillery, and Mineral Processing. It is among the market leaders in manufacturing sorbitol, precipitated calcium carbonate (PCC), and wet-ground calcium carbonate.
Its business portfolio covers starch, starch sugars, calcium carbonate, alcohol and ethanol business, agro-based animal feed, on-site precipitated calcium carbonate plants, and many more.
Gulshan Polyols Limited’s Segmental revenue breakdown is as follows, 75 percent of its revenue comes from Grain Processing, 9 percent from Mineral Processing, and 16 percent from Ethanol.
Financials & Ratios
Its Revenue from operations grew by 55 percent YoY from Rs. 293.47 Crores in Q1FY24 to Rs. 454.56 Crores in Q1FY25, accompanied by profits of Rs. 4.39 Crores to Rs. 9.71 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 2 percent and a return on capital employed (ROCE) of 3.23 percent. It has reported a debt-to-equity ratio of 0.59.
Written by: Bharath K.S
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