GHCL Ltd - Stock Valuation and Financial Performance

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

GHCL Share Price

628.55 -19.85 -3.06%
as on 11-Oct'24 14:00

DeciZen - make an informed investing decision on GHCL

Overall Rating
Bole Toh

1. Quality

2. Valuation

Overvalued

3. Price Trend

Semi Strong

GHCL stock performance -

mw4me loader
P/E Ratio (CD):
11.98
Market Cap:
6,208.7 Cr.
52-wk low:
435
52-wk high:
726

Is GHCL Ltd an attractive stock to invest in?

1. Is GHCL Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that GHCL Ltd is a good 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 Overvalued 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
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

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 majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
ROCE % 20.6%24.2%24.3%18.6%21.4%18.6%14.8%24.6%36.8%27.2%-
Value Creation
Index
0.50.70.70.30.50.30.10.81.61.0-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 2,3742,5312,7842,9193,3413,3052,4913,7784,5513,4473,257
Sales YoY Gr.-6.6%10%4.9%14.5%-1.1%-24.6%51.7%20.5%-24.3%-
Adj EPS 20.227.136.534.736.141.632.762.9110.664.954.1
YoY Gr.-34%34.9%-4.9%4%15.2%-21.3%92%76%-41.3%-
BVPS (₹) 77103.6135.4165.4194.4225.1260.3323412.3309.8325.4
Adj Net
Profit
2022713633383543953115991,058622518
Cash Flow from Ops. 416509458590530624621643856797-
Debt/CF from Ops. 3.22.73.22.22.521.21.20.40.3-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 4.2%0.6%11.4%-24.3%
Adj EPS 13.9%12.5%25.6%-41.3%
BVPS16.7%9.8%6%-24.9%
Share Price 21% 25.2% 12.7% -0%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
Return on
Equity %
29.83030.522.92019.413.421.53017.917
Op. Profit
Mgn %
22.625.124.520.822.922.124.3263324.723.5
Net Profit
Mgn %
8.510.71311.610.61212.515.923.21815.9
Debt to
Equity
1.71.31.10.80.70.60.30.30.10.1-
Working Cap
Days
14112012513912714219314111010493
Cash Conv.
Cycle
2529404749587558505871

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 11.43%

Net Profit is growing at healthy rate in last 3 years 25.64%

Return on Equity has declined versus last 3 years average to 17.00%

Sales growth is not so good in last 4 quarters at -26.02%

Latest Financials - GHCL Ltd.

Standalone Consolidated
TTM EPS (₹) 54.1 54.1
TTM Sales (₹ Cr.) 3,257 3,257
BVPS (₹.) 324.6 325.4
Reserves (₹ Cr.) 3,012 3,020
P/BV 2.00 1.99
PE 11.99 11.98
From the Market
52 Week Low / High (₹) 434.95 / 726.00
All Time Low / High (₹) 6.65 / 726.00
Market Cap (₹ Cr.) 6,209
Equity (₹ Cr.) 95.8
Face Value (₹) 10
Industry PE 60

Management X-Ray of GHCL:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *1.101.101.101.101.101.101.101.101.101.10
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of GHCL

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Sales2,3742,5312,7842,9193,3413,3052,4913,7784,5513,447
Operating Expenses 1,8451,9012,1032,3132,5822,5771,8952,7993,0642,598
Manufacturing Costs553558529585692671477757961824
Material Costs9239471,1391,2741,4131,4551,1361,6871,5931,286
Employee Cost 119134158177201190129153134112
Other Costs 250263277278276261154202377376
Operating Profit 5286296816067597285969791,487849
Operating Profit Margin (%) 22.3%24.9%24.5%20.8%22.7%22.0%23.9%25.9%32.7%24.6%
Other Income 1210403816187123452
Interest 17116513712712712074643927
Depreciation 85828611011713111111794102
Exceptional Items -27-14-30000076219
Profit Before Tax 2573804954075314954188111,463991
Tax 751221155118098111213347198
Profit After Tax 1822583803563513973075981,116794
PAT Margin (%) 7.7%10.2%13.7%12.2%10.5%12.0%12.3%15.8%24.5%23.0%
Adjusted EPS (₹)18.225.838.236.635.841.834.367.8119.482.9
Dividend Payout Ratio (%)12%14%13%14%14%7%16%22%15%14%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24

Equity and Liabilities

Shareholders Fund 7701,0361,3471,6111,9052,1392,4733,0803,9412,966
Share Capital 1001009997989595959696
Reserves 6709361,2471,5131,8072,0442,3782,9853,8462,870
Minority Interest0000000000
Debt1,2381,1231,2451,1531,1111,077605633243115
Long Term Debt784675698744702808564425243115
Short Term Debt4544485474084092694120800
Trade Payables392285334382409408377343230220
Others Liabilities 4516046925895696896301,166720469
Total Liabilities 2,8513,0483,6173,7353,9954,3134,0855,2215,1333,770

Fixed Assets

Gross Block3,0632,1282,5392,7252,9093,0923,2323,0412,2962,497
Accumulated Depreciation1,12979138231327428557566565656
Net Fixed Assets1,9342,0492,4012,4932,5832,6642,6752,4741,7311,842
CWIP 73726741171228121310955
Investments 269101291517380420
Inventories487503584637769791764944772651
Trade Receivables244183276229291274228229218180
Cash Equivalents 344336273610749255140492
Others Assets1432272852661893462731,0891,783130
Total Assets 2,8513,0483,6173,7353,9954,3134,0855,2215,1333,770

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Cash Flow From Operating Activity 416509458590530624621643856797
PBT 2843804954075314954398811,496992
Adjustment 252251208246248264230208114-166
Changes in Working Capital -58-24-1368-156-1860-241-311163
Tax Paid -62-98-108-72-93-116-107-205-443-192
Cash Flow From Investing Activity -127-249-375-279-271-206-109-337-409-534
Capex -132-250-376-282-273-206-111-337-350-106
Net Investments 40001010-61-438
Others 11121110211
Cash Flow From Financing Activity -296-252-113-308-258-339-569-98-530-338
Net Proceeds from Shares 0006630545
Net Proceeds from Borrowing -66-1072346-6478-244-149-136-151
Interest Paid -166-165-137-127-134-122-91-65-45-24
Dividend Paid -23-22-50-34-49-760-52-143-166
Others -414251-199-18-222-234164-210-2
Net Cash Flow -88-302180-57209-83-75
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Ratios
ROE (%)26.828.5431.924.119.9419.6113.3121.5531.7822.99
ROCE (%)20.5524.2324.2618.621.3618.5714.8324.6136.8327.24
Asset Turnover Ratio0.870.920.890.810.860.80.590.810.910.84
PAT to CFO Conversion(x)2.291.971.211.661.511.572.021.080.771
Working Capital Days
Receivable Days45292831283137221720
Inventory Days746767757786114826770
Payable Days18813099103102102126786664

GHCL Ltd Stock News

GHCL Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of GHCL on 11-Oct-2024 14:00 is ₹628.5.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 11-Oct-2024 14:00 the market cap of GHCL stood at ₹6,208.7.
The latest P/E ratio of GHCL as of 11-Oct-2024 14:00 is 11.99.
The latest P/B ratio of GHCL as of 11-Oct-2024 14:00 is 2.00.
The 52-week high of GHCL is ₹726.0 and the 52-week low is ₹434.9.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of GHCL is ₹3,257 ( Cr.) .

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
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