Ethanol stock engaged in manufacturing and supplying fructose, sorbitol, and various other industrial chemicals jumped 4 percent in the day’s trade following the commencement of operations at its new ethanol plant.
Price Action
With a market capitalization of Rs. 1,302 Crores, the shares of Gulshan Polyols Limited were trading at Rs. 208.75 per equity share, up 4 percent from its previous day’s close price of Rs. 200.75.
What Happened
Gulshan Polyols Limited has announced that it has successfully achieved another milestone by starting commercial operations of Ethanol at its 250 KLPD Capacity grain-based Ethanol Plant in Goalpara District Assam.
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 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.
Gulshan Polyols is looking at a total capex of Rs. 450 Crores, it includes setting up a 500 KLPD Ethanol Plant in the state of M.P. for Rs. 300 Crores and Rs. 15 Crores for expanding the aggregate capacities across the grain processing division. In addition to this, an additional capex of Rs. 18.50 Crores is to be deployed for the ethanol plant in Assam over the next 24 months.
Financials & Ratios
Its Revenue from Operations grew by 35 percent from Rs. 301.54 Crores in Q4FY23 to Rs. 405.59 Crores in Q4FY24, accompanied by profits of Rs. 14.55 Crores to Rs. 6.37 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 3.05 percent and a return on capital employed (ROCE) of 4.31 percent. It has reported a debt-to-equity ratio of 0.59.
Written by: Bharath K.S
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