GHCL Ltd Stock Analysis

BSE: 500171 | NSE: GHCL | Chemicals | Small Cap

BSE Share Price Jan 25, 18:01
409.60 1.70 (0.42%)

DeciZen - Make an Informed Decision on GHCL

Overall Rating
See How?

1. Quality

2. Valuation

Fair
P/E P/S EV/EBITDA

3. Price Trend

Semi Strong

FAQ's

1. Is GHCL Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that GHCL Ltd is a average quality company.

2. Is GHCL Ltd undervalued or overvalued?

The key valuation ratios of GHCL Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is GHCL Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of GHCL Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of GHCL:

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

Value Creation Index Colour Code Guide
Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
ROCE % 8.7%12.9%13.3%15.5%17.2%17.6%14.9%14.4%14.5%11.6%-
Value Creation Index -0.4-0.1-0.10.10.20.30.10.00.0-0.2-

Growth Parameters

Growth Parameters Colour Code Guide
Sales 1,9752,2752,2482,3742,5312,7842,9193,3413,3052,9003,478
YoY Gr. Rt. %-15.2%-1.2%5.6%6.6%10%4.9%14.5%-1.1%-12.3%-
Adj EPS 5.61615.120.227.136.534.736.141.633.746.3
YoY Gr. Rt. %-187.1%-5.1%33.4%34%34.9%-4.9%4%15.2%-19.1%-
BVPS (₹) 48.256.758.777103.6135.4165.4194.4225.1260.3278.2
Adj Net Profit 55.6160151202271363338354395320441
Cash Flow from Ops. 399484452416509458590530624621-
Debt/CF from Ops. 4.53.23.33.22.73.22.22.521.2-

CAGR

CAGR Colour Code Guide
9 Years 5 Years 3 Years 1 Years
Sales 4.4%2.8%-0.2%-12.3%
Adj EPS 22.2%4.5%-1%-19.1%
BVPS 20.620.216.315.6
Share Price 28.1% 8% 17.8% 88.4%

Key Financial Parameters

Performance Ratio Colour Code Guide
Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity % 10.830.426.329.83030.522.92019.413.817.2
Op. Profit Mgn % 19.121.120.722.625.124.520.822.922.122.222.4
Net Profit Mgn % 2.876.78.510.71311.610.6121112.7
Debt to Equity 3.72.82.51.71.31.10.80.70.60.30.2
Working Cap Days 145132154141120125139129146168113
Cash Conv. Cycle 2912232529404749586645

Recent Performance Summary

Debt to equity has declined versus last 3 years average to 0.31

Sales growth is good in last 4 quarters at 29.48%

Return on Equity has declined versus last 3 years average to 17.20%

Sales growth has been subdued in last 3 years -0.22%

Net Profit has been subdued in last 3 years -1.01%

Latest Financials - GHCL Ltd.

Standalone Consolidated
TTM EPS (₹) 44.6 46.3
TTM Sales (₹ Cr.) 3,445 3,478
BVPS (₹.) 279.9 278.2
Reserves (₹ Cr.) 2,574 2,558
P/BV 1.46 1.47
PE 9.18 8.85
From the Market
52 Week Low / High (₹) 197.60 / 483.10
All Time Low / High (₹) 6.65 / 483.10
Market Cap (₹ Cr.) 3,906
Equity (₹ Cr.) 95.4
Face Value (₹) 10
Industry PE 42.6

Management X-Ray of GHCL :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *3.231.101.101.091.091.091.101.101.101.10
* Pledged shares as % of Promoter's holding (%)

Event Update

Analyst's Notes

News

About GHCL Ltd

GHCL Limited was incorporated on October 14, 1983 and since then, it has established itself as a well-diversified group. It has ascertained its footprints in Chemicals, Textiles and Consumer Products segments.

The company has state-of-the-art home textile facilities at Vapi. This facility houses the best equipment sourced from Germany and Japan namely, Benninger, Kuster and Monforts. It has the flexibility to process both cotton and blended fabrics. A perennial innovator in bed linen category, some of the recent innovations in the category of ‘sheets’ include the PERFECT FIT, EASYSHEET, microTWILL, EXL Wrinkle Free Sheets, Versatile Reversible Sheets, Soft Wash Percale and Sustainable Fibre dyed sheets. GHCL has also launched a sustainable, traceable bedding line under the brand name “REKOOP” which has been made using recycled PET fibre, with molecular tagging for complete traceability.

The company’s Home Textiles products are predominantly exported worldwide to countries like United Kingdom, United States of America, Australia, Canada, Germany and other European Union countries as well.

The Consumer Products division manufactures and sells Edible salt and Industrial grade salt. It also markets spices, blended spices, and honey in the country under the brand name of i-FLO. GHCL has its salt manufacturing facility at Vedaranyam in Nagapattinam district of Tamil Nadu and a refinery at Chennai for edible salt manufacturing.

Business area of the company

The Company is engaged in primarily two segments consisting of Inorganic Chemicals (mainly manufacture and sale of Soda Ash) and Home Textile division (comprising of yarn manufacturing, weaving, processing and cutting and sewing of home textiles products).

Business division

  • Chemicals
  • Textiles
  • Consumer Products
  • Trading Division

Awards and recognitions

2017-18

  • Special Commendation for Golden Peacock Award for Excellence in Corporate Governance for the year 2017.
  • Golden Peacock Award for Corporate Social Responsibility - 2017 for the year 2017.
  • GHCL Limited has been declared as the Winner of ‘Golden Peacock National Quality Award’ for the year 2018.
  • GHCL Limited achieved 16th rank in Great Place to Work survey among India’s Great Place to Work manufacturing sector.
  • The President of Association Other ways Management & Consultancy France, certify that GHCL Limited has been selected to receive the Green Era Award for Sustainability.

2018-19

  • Dun & Bradstreet Corporate Awards for the year 2018.
  • GHCL Limited achieved 25th rank in Great Place to Work survey among India’s Great Place to Work in manufacturing sector for the year 2018.
  • Gold Award for quality control awarded by International Convention on Quality Concept Circle (ICQCC), Singapore.
  • India Manufacturing Excellence (IME) Awards 2018 awarded by Frost & Sullivan.

2019-20

  • Mine Award - GHCL Limestones Mines received Mine award under A2 category at 26th Mines Environment and Mineral Conservation week.
  • Par Excellence Award - GHCL won ‘Par Excellence Award’ at the 6th National Conclave on 5S, Ankleshwar Chapter, Quality Circle Form of India (QCFI)
  • Saurashtra Eminence Award 2019 - GHCL Foundation Trust received ‘Saurashtra Eminence Award - 2019’ for the great work done towards ‘Rural Development and CSR’ from Divya Bhaskar Group.
  • Jury Special Social Awareness Award - The Federation of Indian Mineral Industries (FIMI) awarded GHCL for innovation in the field of water management and soil fertility in and around the villages of the mining areas. The ‘Jury Special Social Awareness Award’ was presented to the Bhimdeval Limestone Mines, GHCL at the Excellence, Sustainability, Health, Safety and Social Awareness Awards FY 2018-19
  • Excellence in E-procurement - GHCL received award for ‘Excellence in E-procurement’ at procurement Tech Summit for FY 2019.

Milestones

1988 - 2000

  • Commenced Soda Ash Production with 4.2 Lakh MTPA which was further increased to 5.25 Lakh MTPA
  • Commenced Edible Salt Production and launched ‘Sapan’ salt

2001 - 2008

  • Soda Ash capacity increased to 8.5 Lakh MTPA
  • Entered Spinning business with 65 K spindles subsequently increased to 140 K
  • Commissioned Home Textile plant with 36 mn meters processing capacity and 96 airjet looms
  • Commissioned Refined Sodium Bicarbonate plant

2009 - 2015

  • Spindles capacity increased to 175 K, Installed 3320 rotors in spinning
  • Launch of ‘i-FLO’ salt and ‘i-Flo Honey’
  • Home Textiles Air jet looms capacity increased to 162

2016 - 2018

  • Soda Ash production capacity increased to 9.75 Lacs MTPA
  • Doubled Sodium bicarbonate capacity to 60 K MTPA
  • Added TFOs for value added yarn and Air jet spinning
  • Home textiles, processing capacity increased to 45 Mn meters with total 190 Air jet weaving looms

2019 - 2020

  • Soda Ash production capacity to be increased to 11 Lacs MTPA tons / year by FY2019
  • GHCL will be the single largest manufacturer of soda ash in India at a single location
  • Increase Soda Ash production by another 1.25 Lacs MT by Mar’20
  • Envisaged Rs. 150 crore capital allocation for Volume growth and modernization in spinning
Read More Read Less