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Gujarat Narmada Valley Fertilizers & Chemicals Ltd. Stock Analysis

Small Cap
Evaluated by 1949 users | BSE: 500670 | NSE: GNFC |
Fertilizers
Gujarat Narmada Valley Fertiliser Company (GNFC) was set up in Bharuch, Gujarat in the year 1976. The company is a  joint sector enterprise that was promoted by the Government of Gujarat and the Gujarat State Fertilizer Company (GSFC). In 2012 the company changed name from Gujarat...

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.
Gujarat Narmada Valley Fertilizers & Chemicals 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 6.63%7.76%6.15%5.09%-0.41%5.21%7.39%16.02%14.52%8.71%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 2,8463,8624,2534,8474,6424,5524,5895,8375,8965,162
Y-o-Y Gr. Rt.-35.7%10.1%14%-4.2%-1.9%0.8%27.2%1%-12.4%
Adjusted EPS (Rs.) 12.0118.2817.7818.66-14.439.8219.6849.7446.2631.4
Y-o-Y Gr. Rt.-52.2%-2.7%5%-177.3%NA100.4%152.7%-7%-32.1%
Book Value per Share (Rs.) 147.14161.34174.81265.69232.03209.2244.6286.83321.52336.03
Adjusted Net Profit 187284276290-224153306773719488
Net Op. Cash Flow (Rs. Cr.) 79.1253-16011.14909961,4451,819701286
Debt to Cash Flow from Ops 14.417.87-19.94352.047.843.111.360.170.33.01
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.
Gujarat Narmada Valley Fertilizers & Chemicals Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 6.8%2.2%4%-12.4%
Adjusted EPS 11.3%NA16.9%-32.1%
Book Value per Share 9.67.711.24.5
Share Price 9.9% 29.4% -13.1% -1.6%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 8.5511.8510.588.47-5.84.438.6418.7215.219.55
Operating Profit Margin (%) 13.2914.2614.0912.736.712.514.3123.8514.8310.5
Net Profit Margin (%) 6.567.366.55.98-4.833.356.6713.2412.199.45
Debt to Equity 0.50.791.180.951.070.950.520.070.040.16
Working Capital Days 268261274326408389280152150221
Cash Conversion Cycle 4463961231381371197990121
Entity Percentage Holding
Promoters 41.18%
Institutions 24.85%
Non-Institutions 33.96%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of GNFC and arrived at the following conclusion:

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

The 5-year analysis of GNFC's performance infers:

GNFC earnings have grown by 0%, whereas share price has appreciated 29.4% 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 GNFC share prices over the last 10 years. Here is what we found out:

GNFC share price has appreciated 5.8% annually over the past ten years.

Gujarat Narmada Valley Fertiliser Company (GNFC) was set up in Bharuch, Gujarat in the year 1976. The company is a  joint sector enterprise that was promoted by the Government of Gujarat and the Gujarat State Fertilizer Company (GSFC). In 2012 the company changed name from Gujarat Narinada Valley Fertilizers Company Limited to 'Gujarat Narmada Valley Fertilizers & Chemicals Limited'.
GNFC started its manufacturing and marketing operations by

Gujarat Narmada Valley Fertiliser Company (GNFC) was set up in Bharuch, Gujarat in the year 1976. The company is a  joint sector enterprise that was promoted by the Government of Gujarat and the Gujarat State Fertilizer Company (GSFC). In 2012 the company changed name from Gujarat Narinada Valley Fertilizers Company Limited to 'Gujarat Narmada Valley Fertilizers & Chemicals Limited'.
GNFC started its manufacturing and marketing operations by setting up in 1982, one of the world's largest single-stream ammonia-urea fertilizer complexes. Over the next few years, GNFC successfully commissioned different projects - in fields as diverse as chemicals, fertilizers and electronics.

Since inception, GNFC has worked towards an extensive growth as a corporation. A growth which respects the environment and springs from the progressive vision of GNFC.
 
GNFC today has extended its profile much beyond fertilizers through a process of horizontal integration. Chemicals/Petrochemicals, Energy Sector, Electronics/Telecommunications and Information Technology form ambitious and challenging additions to its corporate portfolio. GNFC has an enterprising, strategic view towards expansion and diversification.

GNFC's regional offices are located across India namely in Ahmedabad, Bangalore, Bhopal, Chandigarh, Pune, Hyderabad, Jaipur, Lucknow and New Delhi.

Products and Services

Fertilizers- GNFC is one the leaders in the domestic fertilisers industry. The company manufactures and markets fertiliser such as urea, ammonium nitrophosphate and calcium ammonium nitrate under the brand NARMADA. It is also engaged in importing urea, diammonium phosphate (DAP) and muriate of potash (MOP).

Chemicals- The company has also set up core chemical and petrochemical plants that manufactures products such as methanol, formic acid, nitric acid, acetic acid and many more.

Information Technology- It has set IT division under the name (n) Code Solutions. The company offers digital certificates and security services which include managed IT services and secure infrastructure design and building services.

Awards

  • National Safety Council, USA: Good Safety Performance   
  •  National Productivity Council: Best Productivity - First, Second & Third Prizes, Best Productivity for Nitrogenous Fertilizers
  •  Ministry of Labour, GOI: Good Safety Performance (Thrice)
  •  Federation of Indian Chamber of Commerce & Industry (FICCI) : Best Environment Preservation & Pollution Control
  •  Indian Chemicals Manufacturers Association (ICMA) : Environmental Control & Safety
  •  Fertilizer Association of India (FAI) : For research paper
  • Best Technical Innovation - pure CO2 enhancement scheme in Ammonia plant
  • Best Technical Innovation implemented in fertilizer industry (twice)
  • Best Overall Performance of an operating unit for P2O5 in complex fertilizers
  •  All India Organization of Employers: Outstanding Contribution in the field of Industrial Relations
  •  National Energy Conservation Award, Deptt. of Energy, Government of India : Energy Conservation Award, Second Prize
  •  Government of India: Award for Energy Conservation
  •  Jawaharlal Nehru Memorial National Award: Effective Energy Conservation Award
  •  National Suggestion Scheme: Two awards for the company, one for the employee
  •  Indian National Suggestion Scheme (INSAAN) : Prizes in different years (thrice), Excellence in Suggestion Scheme for the Company, Second Prize to the employee (twice)
  •  Texaco Development Corporation (TDC), USA : Licensee of the year for operating gassifier on more than rated capacity for over a decade
  •  Labour & Employment Deptt., Government of Gujarat: Shram Bhushan Award & Rajya Shram Ratna Award to the employees
  •  Indian Institute of Chemical Engineers (IICE): ICI Award for Excellence in Process / Product Development
  •  Deptt. of Scientific & Industrial Research, Ministry of Science & Technology, GOI FICCI: National Award for R&D efforts
  •  World Environment Foundation: Golden Peacock Eco Innovation Award
  •  Fertilizers Association of India: Transfer of Improved Farm Technology Award at the national level
  •  Computer Society of India: CSI-Nihilent e-Governance Award for the best technology implementation for
  • e-Governance projects
  •  The Government of Gujarat Project eProcurement handled by (n)Code Solutions – A Division of GNFC Ltd. has won the CSI-Nihilent e-Governance Awards 2006-2007 in the category of Government to Business. Award ceremony held at Bangalore on December 1, 2007 at 42nd Computer Society of India (CSI).  

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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