On Tuesday, the share price of the small-cap company rose by 8 percent to its intraday high of Rs 296.5 per share from its previous close of Rs 274.3 after the company announced the commission of the manufacturing plant at t Fertilizernagar, Vadodara
In the filling of the Gujarat State Fertilizers & Chemicals, the company opened a manufacturing plant for the production of Ammonium Sulphate at Fertilizernagar, Vadodara. The new plant has an installed annual capacity of 1,32,000 MT of Ammonium Sulphate.
According to the company report, the net revenue increased by 25 percent year over year, from Rs 2,405 crore in Q2FY23 to Rs 3,017 crore in Q2FY24. Their revenue rose by 48 percent sequentially from Rs 2,032 crore in Q1FY24 to the current levels.
In addition, the company’s net profit dropped by 1.3 percent year over year, from Rs 289 crores in Q2FY23 to Rs 285 crores in Q2FY24. Their profit increased by 168 percent on a quarterly basis from Rs 106 crore in Q1FY24 to the current levels.
The share price of the company has risen by 73 percent in the last six months and 100 percent in the last year. For example, if an investor invested Rs 1 lakh a year ago the current value would be Rs 2 Lakhs.
Gujarat State Fertilizers & Chemicals has a low price-to-earnings ratio of 10 compared to its competitors, also the company is debt-free with a return on equity ratio of 10, a return on capital employed of 13 percent, and a net profit margin of 11 percent.
The small-cap company has a market capitalization of Rs 11,535 crores, the promoter owns 38 percent of the company, the general public owns 33 percent, foreign institutional investors own 20 percent, and domestic institutional investors own 9 percent.
Gujarat State Fertilizers & Chemicals Ltd, founded in 1962, is a public sector company supported by the Gujarat government. It produces a variety of fertilizers as well as industrial products such as plastics, synthetic rubbers, and man-made fibers.
Written by Sriram KV
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