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GHCL Ltd. Stock Analysis

Small Cap
Evaluated by 1622 users | BSE: 500171 | NSE: GHCL |
Chemicals
GHCL India was commissioned in March 1988, over the years it has evolved as a premiere global chemical and textile company. GHCL is distinguished by its growth, financial performance and outstanding people and processes. As a global company, GHCL India is Customer-focused, committed to high...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
GHCL Ltd. has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 4.63%8.66%12.93%13.33%15.42%17.17%17.6%14.86%14.39%14.49%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 1,5881,9752,2752,2482,3742,5312,7842,9193,3413,305
Y-o-Y Gr. Rt.-24.4%15.2%-1.2%5.6%6.6%10%4.9%14.5%-1.1%
Adjusted EPS (Rs.) 1.375.5615.9615.1420.1927.0536.4934.7136.1141.61
Y-o-Y Gr. Rt.-305.8%187.1%-5.1%33.4%34%34.9%-4.9%4%15.2%
Book Value per Share (Rs.) 54.5348.1956.6558.7277103.57135.37165.35194.38225.14
Adjusted Net Profit 13.755.6160151202271363338354395
Net Op. Cash Flow (Rs. Cr.) 161399484452416509458590530624
Debt to Cash Flow from Ops 11.874.53.223.293.182.683.192.242.461.98
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
GHCL Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 8.5%6.9%5.9%-1.1%
Adjusted EPS 46.1%15.6%4.5%15.2%
Book Value per Share 17.123.918.515.8
Share Price 20.6% 4.5% -16.4% -16.4%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 1.8210.8230.4426.2529.7629.9630.4722.8720.0219.41
Operating Profit Margin (%) 18.7619.0921.120.722.5825.0924.4620.7822.9122.07
Net Profit Margin (%) 0.862.827.026.748.5110.6913.0411.5810.5911.96
Debt to Equity 3.513.722.752.531.721.321.090.820.680.58
Working Capital Days 178145132154141120125139129146
Cash Conversion Cycle 38291223252940474958
Entity Percentage Holding
Promoters 19.26%
Institutions 35.51%
Non-Institutions 45.23%
Pledged *0.000.000.000.001.083.231.101.101.091.09
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of GHCL Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that GHCL Ltd. is a average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of GHCL Ltd.'s performance infers:

GHCL Ltd. earnings have grown by 15.6%, whereas share price has appreciated 4.5% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of GHCL Ltd. share prices over the last 10 years. Here is what we found out:

GHCL Ltd. share price has appreciated 14.5% annually over the past ten years.

GHCL India was commissioned in March 1988, over the years it has evolved as a premiere global chemical and textile company. GHCL is distinguished by its growth, financial performance and outstanding people and processes. As a global company, GHCL India is Customer-focused, committed to high quality delivery.

The product range of the company includes flat sheets, fitted sheets. pillow cases, shams, valences, curtains, duvet covers, and other top bed items in 100% cotton and

GHCL India was commissioned in March 1988, over the years it has evolved as a premiere global chemical and textile company. GHCL is distinguished by its growth, financial performance and outstanding people and processes. As a global company, GHCL India is Customer-focused, committed to high quality delivery.

The product range of the company includes flat sheets, fitted sheets. pillow cases, shams, valences, curtains, duvet covers, and other top bed items in 100% cotton and blends.

Headquarter out of NOIDA, UP -- GHCL is a publicly-traded, $700 million multinational company, with a leadership position in three industries – chemicals, textiles and information technology outsourcing.  More than 7000 employees in Asia, the US, the United Kingdom, Eastern Europe, and Cambodia - manufacture, market and distribute GHCL products and services worldwide.   

Chemical products - It include high-grade soda ash, a key ingredient in detergents, soaps, dyes, glass, and refined salt used for food processing, with state-of-the-art manufacturing facilities in India and in Romania. GHCL has an annual capacity of 1.15 million tons per annum (TPA), making it one of the largest soda ash manufacturers in the world, and has received recognition for excellence in manufacturing, in employee safety, and its efforts to conserve water and reduce waste at the source.

Home Textiles  - The textile division at GHCL is a vertically integrated operation that manufactures premium quality yarn, griege fabric and home textile products like bed linen, curtains, madeups and cotton yarn.

The two spinning units are located within the state of Tamil Nadu, India has an Installed capacity of 125,000 spindles manufacturing 100% Cotton and Polyester Cotton yarns. The manufacturing units at the Textile Company have state-of-the-art textile machinery from Reiter, Switzerland and Schlafhorst, Germany, among others to lend that cutting edge to Quality.

The production facilities are ISO 9001-2000 certified and also have been awarded the OKO-TEX certification from CITIVE, Portugal as per Standard 100, confirming our Yarn to be suitable for Products used by Infants. Windpower is used for generating and meeting out the energy requirement for the spinning operations, which is not only cost effective but also eco-friendly.

Products manufactured at the GHCL Textile Company are well accepted both in the domestic and international markets, by premium buyers, who cater to the fine count End products like apparels ranging from shirtings and different types of garments, to home textile products such as bed-sheets, bed-linen, madeups and curtains. In the home textiles arena, GHCL's revenue base has grown from approx. 50 million to a revenue base of $615 million in 18 months. It has done four international acquisitions which include three companies in the USA and one in UK. Thereby becoming virtually the only global textiles producer that is fully vertically integrated, from fiber to fashion.

Home Textile products include bed and bath linens for home use, marketed by the Dan River and GHCL business units, and commercial linens and uniforms for use by restaurants and hotels, marketed by the Best Textiles International and H.W. Baker Hospitality business units. These relationships allow GHCL to rapidly respond to changes in fashion and quickly produce and ship trend-right merchandise to its customers. Company-owned textile manufacturing plants include nearly 1,400,000 yarn spindles that run on wind-generated power, and an annual fabric processing capacity of 36 million meters. Products range from luxurious embroidered organic cottons to high performance synthetics that look and feel like cotton but last up to four times longer.   

The information technology enabled services (ITES) that GHCL provides through its Colwell & Salmon Communications business unit includes global market research, information and telemarketing services, with cost-effective solutions for both project-based work and ongoing processes. With a focus on operational excellence in providing basic yet diverse necessities, by capitalizing on a global economy, and by growing through acquisition of market leaders, GHCL, Ltd. will continue to deliver exceptional value to its customers.

GHCL has established its presence all over India. To effectively service the various markets, GHCL has 10 Area Sales Offices at present. GHCL India also has an Export Division to cater to the Overseas Market.

The customers of the company include top and reputed names from India as well as abroad, Hindustan Lever Ltd, Ghari Detergent Group, Hindustan National Glass & Inds, Philips Ltd and Videcon etc from India.SC Stirom SA (Romania),Guardian Oroshaza KFT (Hungary), United Hungarian Glass Containers and Yioula Group etc from over seas.

Subsidiaries of the company are:

  • In USA, it had acquired Dan River in January 2006, HW Baker in December 2006 & BEST MANUFACTURING GROUP in February 2007.
  • In UK, in August 2006 it acquired Rosebys, the leading home furnishings retailer with more than 320 stores across the country.

Awards & Achievements:

  • It has received recognition for excellence in manufacturing, in employee safety, and its efforts to conserve water and reduce waste at the source. 
  • The company has been awarded ISO 9001, OHSA 14001 for the quality parameters it practices.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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