This Smallcap Chemical stock which deals in the business of chemicals, yarn, and commodity products was up by 6 percent in the day’s trade after the board approved additional capex plans worth Rs. 350 crore in Gujarat.
Price Action
With a market capitalization of Rs. 5,802 Crores, the shares of GHCL Limited were up by 5.8 percent in the day’s trade touching a day’s high of Rs. 608.40 per share. The stock reiterated from the day’s high and was trading at Rs. 605.95 per share which is 5.36 percent higher from the previous closing price of Rs. 575.10 apiece.
What Happened
The stocks of GHCL rose after the board in their recently concluded meeting approved the additional capital expenditure of Rs. 350 crores which will be used for the development of Zara Zumara Salt field work in Kutch, Gujarat. This initiative can benefit the company as they are planning to enter different segments such as Bromine which is used for pharmaceuticals, chemicals intermediates and dyestuffs, and others.
About the Company
GHCL Limited was established in 1983. It is a prominent Indian manufacturer specializing in soda ash and home textiles. They operate primarily in two segments namely Inorganic Chemicals, producing soda ash and sodium bicarbonate, and Textiles, focusing on yarn manufacturing and home textile products.
Their business model focuses on leveraging captive limestone mines for raw materials and integrating its operations from production to marketing. It also engages in the edible salt market, improving its product portfolio.
Revenue Mix
The company is engaged and recognizes its revenue under a sole segment named Chemical activity as of September 2024.
Products and Services
GHCL Limited produces a variety of products which includes soda ash which is used in detergents and glass manufacturing and sodium bicarbonate such as baking soda. The company also manufactures edible salt and industrial salt under the brands i-FLO and Sapan. Additionally, GHCL focuses on home textiles, offering yarn and finished textile products for domestic and international markets.
Financials & Ratios
Its Revenue from operations declined by 1.5 percent year on year from Rs. 805 Crores in Q2FY24 to Rs. 793 Crores in Q2FY25, accompanied by profits of Rs. 143 Crores to Rs. 155 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 17.27 percent and a return on capital employed (ROCE) of 19.91 percent. It has reported a debt-to-equity ratio of 0.08.
Shareholding Pattern
As of September 2024, the shareholding pattern with promoters stake holding a share of 19.03 percent in GHCL, Foreign Institutional Investors (FII) holdings stood at 25.70 percent, Domestic Institutional investors (DII) standing at 9.79 percent, and public holdings standing at 45.45 percent.
Written by Santhosh 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.
