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Gujarat State Fertilizers & Chemicals Ltd Stock Analysis

Small Cap
Evaluated by 2387 users | BSE: 500690 | NSE: GSFC |
Fertilizers
Gujarat State Fertilisers & Chemicals (GSFC) incorporated in 1962, is engaged in manufacturing of fertilizers and industrial products. It was earlier known as Gujarat State Fertilizer Company (GSFC) which was joint sector enterprise set up by the Government of Gujarat.Earlier the equity...

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 State 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
Value Creation Index Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 25.31%21.75%12.23%8.03%8.55%7.74%6.9%6.78%6.96%2.4%
Value Creation Index 0.710.43NANANANANANANANA
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 4,7555,3026,2535,4125,3256,1085,2656,2718,5757,621
Y-o-Y Gr. Rt.-11.5%18%-13.5%-1.6%14.7%-13.8%19.1%36.7%-11.1%
Adjusted EPS (Rs.) 18.8719.7214.079.7110.6111.111.1412.4913.513.01
Y-o-Y Gr. Rt.-4.5%-28.7%-31%9.3%4.6%0.4%12.1%8.2%-77.7%
Book Value per Share (Rs.) 70.9988.2598.92105.16112.03138.17165.01182.24182.39170.6
Adjusted Net Profit 752786560387423443444498538120
Net Op. Cash Flow (Rs. Cr.) 1,357540-8871,573258-242907361507-32.4
Debt to Cash Flow from Ops 0.291.14-1.70.52.89-5.330.893.022.11-48.15
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 State 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 5.4%7.4%13.1%-11.1%
Adjusted EPS -18.5%-22.3%-35.4%-77.7%
Book Value per Share 10.28.81.1-6.5
Share Price 0.5% 4.5% -10.4% 103.4%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 30.2524.7715.039.529.778.887.357.197.411.7
Operating Profit Margin (%) 24.9222.0213.7611.5611.711.519.959.569.524.55
Net Profit Margin (%) 15.8214.828.967.157.947.248.437.936.281.57
Debt to Equity 0.140.180.380.190.170.230.120.150.150.23
Working Capital Days 142141182229201218292254203237
Cash Conversion Cycle 6481125158135155198155122158
Entity Percentage Holding
Promoters 37.84%
Institutions 28.09%
Non-Institutions 34.07%
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 Gujarat State Fertilizers & Chemicals Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Gujarat State Fertilizers & Chemicals Ltd is a average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Gujarat State Fertilizers & Chemicals Ltd's performance infers:

Gujarat State Fertilizers & Chemicals Ltd earnings have declined by -22.3%, whereas share price has appreciated 4.5% 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 Gujarat State Fertilizers & Chemicals Ltd share prices over the last 10 years. Here is what we found out:

Gujarat State Fertilizers & Chemicals Ltd share price has appreciated 2.4% annually over the past ten years.

Gujarat State Fertilisers & Chemicals (GSFC) incorporated in 1962, is engaged in manufacturing of fertilizers and industrial products. It was earlier known as Gujarat State Fertilizer Company (GSFC) which was joint sector enterprise set up by the Government of Gujarat.

Earlier the equity structure consisted of 49% of State Government and the rest of public and financial institutions. Currently, the State Government has reduced its equity participation to 38.4%. The motive behind

Gujarat State Fertilisers & Chemicals (GSFC) incorporated in 1962, is engaged in manufacturing of fertilizers and industrial products. It was earlier known as Gujarat State Fertilizer Company (GSFC) which was joint sector enterprise set up by the Government of Gujarat.

Earlier the equity structure consisted of 49% of State Government and the rest of public and financial institutions. Currently, the State Government has reduced its equity participation to 38.4%. The motive behind formation of this organisation was to support farmers.

The company’s manufacturing units is located at Kosamba, Sikka and Nandesari. It has marketing network spread across India in states like Andhra Pradesh, Chhatisgarh, Gujarat, Haryana, Karnataka, Madhya Pradesh, Maharashtra, Punjab, Rajasthan, Daman and Uttar Pradesh.

GSFC has set up several companies such as Gujarat Narmada Valley Fertilizers Company, Gujarat Industries Power Company, Gujarat Green Revolution Company, GSFC Investment and Leasing Company, GSFC-Polymer Unit and GSFC - Fiber Unit.

Products

GSFC has created more than 24 brands of fertilizers, petrochemicals, chemicals, industrial gases, plastics, fibers and other products.

Industrial Products- Under this it manufactures Anhydrous Ammonia, Argon Gas, Caprolactam, Melamine, Methyl Ethyl Ketoxime, Nylon-6, Oleum and Sulphuric Acid.

Agro products- In this segment the company manufactures a range of fertiliser, bio-fuels and seeds.

Biotech products- The Company manufactures range of biotech products under various brands such as Sardargib, Sardar Eco Green, Sardarvam, Sardartrap and Sardarlures, Sardarneem, Sardaramin and Sardaramin Granules.

Awards

GSFC bags National Award for Excellence in Cost Management for 2006.

The company received National Award for one of the best employers for disabled persons by Ministry of Social Justice and Empowerment, New Delhi.

Outlook

Gujarat State Fertilizers and Chemicals is planning to set up its third diammonium phosphate (DAP) plant at Sihka in Gujarat state.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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