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GHCL Ltd Stock Analysis

Small Cap
Evaluated by 1681 users | BSE: 500171 | NSE: GHCL |
Chemicals

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...

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 24.1% 13.6% -5.2% 115.6%
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 36.17%
Non-Institutions 44.57%
Pledged *0.000.000.001.083.231.101.101.091.091.09
* 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 13.6% 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 18.9% annually over the past ten years.

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

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
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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