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Check Before You Invest : GHCL Ltd

BSE: 500171 NSE: GHCL ISIN: INE539A01019
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Chemicals

Snapshot

Q.1 Which industry/sub-sector does GHCL Ltd belong to?
GHCL Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.
Q.2 Is GHCL Ltd a good quality company?
GHCL Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is GHCL Ltd undervalued or overvalued?
GHCL Ltd appears Fair, as its key valuation ratios are in line with their past averages.
Q.4 Is GHCL Ltd a good buy now?
GHCL Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of GHCL Ltd?
GHCL Ltd revenue growth is -7.6% for FY-2025 , which is below its 5 year CAGR of -0.8% , indicating slower growth.
Q.2 Gross Profit margin of GHCL Ltd?
GHCL Ltd Gross profit margin which is the profit after deduction of direct costs, is 26.8% for FY-2025 , which is above its 5 year median of 24.6% , indicating increasing margins.
Q.3 Operating Profit Margin of GHCL Ltd?
GHCL Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 27.61% for FY-2025 , which is above its 5 year median of 25.99% indicating increasing margins.
Q.4 Net Profit Margin of GHCL Ltd?
GHCL Ltd Net Profit Margin is 19.61% for FY-2025 , is in line with with its 5 year median of 19.61%, indicating stable margins.
Current Level Historic Median
Gross Profit Margin 26.8 24.6
Operating Profit Margin 27.61 25.99
Net Profit Margin 19.61 19.61
Q.5 Return on Asset of GHCL Ltd?
GHCL Ltd Return on Asset is 15.69%, which is in line with its 5 year historical median of 15.69%, indicating stable asset utilization efficiency.
Q.6 Return on Equity (ROE) of GHCL Ltd?
GHCL Ltd Return on equity is 19.38% for FY-2025 , which is below its historical median of 21.55%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of GHCL Ltd?
GHCL Ltd Return on capital employed is 25.25% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 13.5%, indicating value creation.
Q.8 Cash conversion cycle of GHCL Ltd?
GHCL Ltd Cash conversion cycle is 57 days, below its historical median of 58 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.89 0.84
ROE 19.38 21.55
ROCE 25.25 25.25
Cash Conversion Cycle 57 days 58 days
Q.9 Debt to Equity ratio of GHCL Ltd?
GHCL Ltd Debt-to-Equity ratio is 0.03 , which is lower with the industry average of 0.13 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of GHCL Ltd?
GHCL Ltd Debt to cash flow from operations is 0.15 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of GHCL Ltd?
Promoters hold 19.87% of the GHCL Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of GHCL Ltd vs industry peers?
GHCL Ltd revenue CAGR is -0.75% , compared to the industry median CAGR of 7.58% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 3,183.5 202
Gross Profit 853 23.6
Operating Profit 877 24
Net Profit 624 12
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.89 0.93
ROE 19.38 10.17
ROCE 25.25 12.96
Cash Conversion Cycle (days) 57.37 62

Valuation & price assessment

Q.1 Stock return of GHCL Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 14.2% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 14.2% 17.3% 1.5% -18.8%
Q.3 Valuation ratios of GHCL Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 9.08 4.92 41.15
Price to Book 1.34 0.72 2.38
Price to Sales 1.51 0.54 1.93
EV to EBITDA 5.37 4.31 13.71

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