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Gulshan Polyols Ltd Stock Analysis

Small Cap
Evaluated by 604 users | BSE: 532457 | NSE: GULPOLY |
Consumer Food
Gulshan Polyols Ltd. (GPL) was incorporated, to take over the Sorbitol project from Gulshan Sugars & Chemicals Ltd.(GSCL) in terms of scheme of Arrangement/ demerger.The plant was set-up in 1996 in the State of Gujarat in the parent company i.e. Gulshan Sugars & Chemicals .The plant is...

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.
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 11.97%11.82%14.64%12.69%9.62%9.73%7.67%5.67%6.94%6.78%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 259273282325402441493624674621
Y-o-Y Gr. Rt.-5.4%3.5%15.2%23.7%9.7%11.7%26.6%8%-7.9%
Adjusted EPS (Rs.) 3.854.235.686.295.716.65.563.624.464.39
Y-o-Y Gr. Rt.-9.9%34.3%10.7%-9.2%15.6%-15.8%-34.9%23.2%-1.6%
Book Value per Share (Rs.) 26.2329.9534.8840.4944.950.0455.1958.2161.9365.07
Adjusted Net Profit 16.317.92426.625.430.626.11720.920.6
Net Op. Cash Flow (Rs. Cr.) 22.842.72132.249.855.48142.187.144.1
Debt to Cash Flow from Ops 1.940.911.682.581.82.492.024.321.662.29
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.
Gulshan Polyols Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 10.2%9.1%8%-7.9%
Adjusted EPS 1.5%-5.1%-7.6%-1.6%
Book Value per Share 10.67.75.65.1
Share Price 23.4% -0.6% -1.1% 96.2%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 14.1713.8516.315.6712.9113.410.376.397.426.91
Operating Profit Margin (%) 14.2113.5815.9514.3313.4313.7812.2711.0612.4111.09
Net Profit Margin (%) 6.296.568.58.166.316.935.32.723.13.32
Debt to Equity 0.370.280.220.460.430.570.630.670.50.33
Working Capital Days 9999101115106103117117103108
Cash Conversion Cycle 67666777706772807779
Entity Percentage Holding
Promoters 68.20%
Non-Institutions 31.79%
Others 0.01%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Gulshan Polyols Ltd's performance infers:

Gulshan Polyols Ltd earnings have declined by -5.1%, whereas share price has depreciated -0.6% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

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

Gulshan Polyols Ltd share price has depreciated 15.5% annually over the past ten years.

Gulshan Polyols Ltd. (GPL) was incorporated, to take over the Sorbitol project from Gulshan Sugars & Chemicals Ltd.(GSCL) in terms of scheme of Arrangement/ demerger.

The plant was set-up in 1996 in the State of Gujarat in the parent company i.e. Gulshan Sugars & Chemicals .The plant is equipped with International Quality Equipment and Technology having the largest capacity in India.

The plant is capable to produce Crystalline and Non–crystalline grade of Sorbitol which

Gulshan Polyols Ltd. (GPL) was incorporated, to take over the Sorbitol project from Gulshan Sugars & Chemicals Ltd.(GSCL) in terms of scheme of Arrangement/ demerger.

The plant was set-up in 1996 in the State of Gujarat in the parent company i.e. Gulshan Sugars & Chemicals .The plant is equipped with International Quality Equipment and Technology having the largest capacity in India.

The plant is capable to produce Crystalline and Non–crystalline grade of Sorbitol which is a unique feature as compared to other domestic plants. The present installed capacity is 30000 Tones of Sorbitol.

Gulshan Group has diversified interests and is engaged in manufacture of various Industrial Chemicals for Multiple Applications in several companies. The Group was initially engaged in sugar business, which later diversified into the field of Industrial Chemicals. The Group set up its first Indigenous plant to produce ‘Synthetic Fillers’ popularly known as ‘Calcium Carbonate (Caco3) ‘Precipitated and Activated’ in the State of Uttar Pradesh where the high quality Limestone is available in plenty in nearby area.

The Board of Directors of the Gulshan Sugars & Chemicals and Gulshan Polyols at its meeting held on February 14, 2008, has considered the proposal for corporate restructuring involving merger / amalgamation and other related matters. The Board of Directors unanimously approved a proposal for amalgamation / merger of Gulshan Sugars & Chemicals Ltd with Gulshan Polyols Ltd subject to the approval of shareholders, High Court, Stock Exchange and other Regulatory Authorities and compliance of other applicable regulations.

Gulshan Polyols Ltd and Gulshan Sugars & Chemicals Ltd both jointly appointed Price Waterhouse Coopers (PWC) to carry out the valuation exercise and to suggest entitlement ratio upon amalgamation / merger of Gulshan Sugars & Chemicals Ltd with Gulshan Polyols Ltd. PWC have submitted their report to the Board of Directors and recommended the entitlement ratio as under:

The entitlement ratio for Issue of equity shares of Gulshan Polyols Ltd to the shareholders of Gulshan Sugars & Chemicals Ltd as 6:1 i.e. One (Rupees 5/- fully paid up) equity share of Gulshan Polyols Ltd for Six (Rupees 8/- fully paid up) equity shares of Gulshan Sugars & Chemicals Ltd.

The Board of Gulshan Polyols Ltd have accepted and approved the above entitlement ratio subject to the approval of shareholders, Stock Exchange, High Court and compliance of other regulatory and applicable provisions etc.

Product manufactured by the company include:

The Company is engaged in manufacturing of ‘Sorbitol-70%’. Sorbitol, a starch derivative, sweet in taste,  finds wide range application, the major uses in dentrifice, cosmetic, Pharma, Vitamin-C, food products etc.

Achievements/ recognition:

GPL has an accreditation as ISO 9001:2000 certification.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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