Small-cap ethanol stock jumps 4 percent in the day’s trade after its bags order worth Rs. 571 Crores from Bharat Petroleum Corporation Limited (BPCL), Indian Oil Corporation (IOCL), and Hindustan Petroleum Corporation.
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 one of the market leaders in manufacturing sorbitol, precipitated calcium carbonate (PCC) and wet ground calcium carbonate.
At 11:15 am the shares of Gulshan Polyols Limited were trading at Rs.226.60, up 1.75 percent from its previous day’s close price of Rs. 222.70 and its market capitalization is Rs. 1,415 Crores.
Gulshan Polyols Limited had participated in a tender floated by Oil Marketing Companies inviting various molasses and grain-based distilleries for supplying Ethanol under EBPP during the Ethanol Supply Year till 31-10-2024 at their various locations across the country.
Following the tenders placed Gulshan Polyols has won a tender worth Rs. 571.50 Crores for supplying 89,404 Kilolitres of Ethanol to Bharat Petroleum Corporation Limited (BPCL), Indian Oil Corporation (IOCL), and Hindustan Petroleum Corporation.
Gulshan Polyols is looking at a total capex of Rs. 450 Crores, it includes to set 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.
Gulshan Polyols 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.
The company’s revenue from operations grew 7.18 percent from Rs. 1,100 Crores in FY22 to Rs. 1,179 Crores in FY23, accompanied by profits of Rs. 85 Crores to Rs. 45 Crores.
Written by: Bharath K.S
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