Chemicals & Petrochemicals
Valuation | |
|---|---|
| Market Cap | 4.88 kCr |
| Price/Earnings (Trailing) | 9.97 |
| Price/Sales (Trailing) | 1.55 |
| EV/EBITDA | 6.01 |
| Price/Free Cashflow | 18.59 |
| MarketCap/EBT | 7.05 |
| Enterprise Value | 4.9 kCr |
Fundamentals | |
|---|---|
Growth & Returns | |
|---|---|
| Price Change 1W | 0.70% |
| Price Change 1M | -6% |
| Price Change 6M | -9.4% |
| Price Change 1Y | -26.1% |
| 3Y Cumulative Return | 2.6% |
| 5Y Cumulative Return | 21% |
| 7Y Cumulative Return | 11.3% |
| 10Y Cumulative Return | 16.4% |
| Revenue (TTM) |
| 3.14 kCr |
| Rev. Growth (Yr) | -4.3% |
| Earnings (TTM) | 507.09 Cr |
| Earnings Growth (Yr) | -37.1% |
Profitability | |
|---|---|
| Operating Margin | 22% |
| EBT Margin | 22% |
| Return on Equity | 13.95% |
| Return on Assets | 11.87% |
| Free Cashflow Yield | 5.38% |
Cash Flow & Liquidity |
|---|
| Cash Flow from Investing (TTM) | -357.66 Cr |
| Cash Flow from Operations (TTM) | 637.88 Cr |
| Cash Flow from Financing (TTM) | -230.32 Cr |
| Cash & Equivalents | 56.52 Cr |
| Free Cash Flow (TTM) | 322.99 Cr |
| Free Cash Flow/Share (TTM) | 33.62 |
Balance Sheet | |
|---|---|
| Total Assets | 4.27 kCr |
| Total Liabilities | 636.47 Cr |
| Shareholder Equity | 3.64 kCr |
| Current Assets | 1.91 kCr |
| Current Liabilities | 319.96 Cr |
| Net PPE | 1.81 kCr |
| Inventory | 556.09 Cr |
| Goodwill | 0.00 |
Capital Structure & Leverage | |
|---|---|
| Debt Ratio | 0.02 |
| Debt/Equity | 0.02 |
| Interest Coverage | 60.64 |
| Interest/Cashflow Ops | 45.89 |
Dividend & Shareholder Returns | |
|---|---|
| Dividend/Share (TTM) | 12 |
| Dividend Yield | 2.26% |
| Buy Backs (1Y) | -4% |
| Shares Dilution (3Y) | -3.8% |
Profitability: Very strong Profitability. One year profit margin are 16%.
Balance Sheet: Strong Balance Sheet.
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Dividend: Dividend paying stock. Dividend yield of 2.26%.
Smart Money: Smart money is losing interest in the stock.
Past Returns: Underperforming stock! In past three years, the stock has provided 2.6% return compared to 12.8% by NIFTY 50.
Growth: Declining Revenues! Trailing 12m revenue has fallen by -5.1% in past one year. In past three years, revenues have changed by -41.1%.
Momentum: Stock has a weak negative price momentum.
Technicals: SharesGuru indicator is Bearish.
Insider Trading: Significant insider selling noticed recently.
Profitability: Very strong Profitability. One year profit margin are 16%.
Balance Sheet: Strong Balance Sheet.
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Dividend: Dividend paying stock. Dividend yield of 2.26%.
Smart Money: Smart money is losing interest in the stock.
Past Returns: Underperforming stock! In past three years, the stock has provided 2.6% return compared to 12.8% by NIFTY 50.
Growth: Declining Revenues! Trailing 12m revenue has fallen by -5.1% in past one year. In past three years, revenues have changed by -41.1%.
Momentum: Stock has a weak negative price momentum.
Technicals: SharesGuru indicator is Bearish.
Insider Trading: Significant insider selling noticed recently.
Investor Care | |
|---|---|
| Dividend Yield | 2.26% |
| Dividend/Share (TTM) | 12 |
| Buy Backs (1Y) | -4% |
| Earnings/Share (TTM) | 53.24 |
Financial Health | |
|---|---|
| Current Ratio | 5.98 |
| Debt/Equity | 0.02 |
Technical Indicators | |
|---|---|
| RSI (14d) | 39.89 |
| RSI (5d) | 41.88 |
| RSI (21d) | 35.53 |
| MACD Signal | Sell |
| Stochastic Oscillator Signal | Hold |
| SharesGuru Signal | Sell |
| RSI Signal | Hold |
| RSI5 Signal | Hold |
| RSI21 Signal | Hold |
| SMA 5 Signal | Buy |
| SMA 10 Signal |
Summary of GHCL's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
The management of GHCL Limited provided an outlook highlighting their cautious approach due to current market dynamics in the soda ash industry. Key points include:
Market Conditions: The domestic soda ash demand has grown by around 5% year-to-date, but the market remains oversupplied due to high volumes of cheap imports, averaging 85,000 tons per month. This has led to pressure on realisations, causing a cautious price outlook for the next 1-2 quarters.
Antidumping Duty: A significant development is the recommendation for an antidumping duty on soda ash which is currently awaiting clearance from the Finance Ministry. This could potentially assist in mitigating the competitive pricing pressures from imports.
Global Dynamics: China's domestic soda ash demand has seen a year-on-year decline of approximately 2%, contributing to an oversupply in the global market. This has led to volatile prices, affecting realizations worldwide.
Cost Optimization: Despite challenging conditions, GHCL's focus on operational efficiencies and cost optimization is expected to sustain margins. The EBITDA for Q2 FY '26 was INR 175 crores, with an EBITDA margin of 23.8%, down from 27% in the same quarter last year.
Share Buyback Program: The management announced a buyback program of INR 300 crores, aiming to optimize capital structure and enhance shareholder value.
Expansion and Diversification Plans: GHCL is optimistic about future growth from new applications like solar glass, expected to ramp up demand starting next year. The bromine and vacuum salt projects are on track for commissioning in early Q4 FY '26 but may face slight delays.
Long-Term Vision: The Greenfield soda ash project is a strategic long-term investment that is progressing slower than anticipated, but efforts are underway to address these delays.
Overall, management remains confident in GHCL's ability to navigate current challenges and capitalize on long-term growth opportunities in India, particularly driven by renewable energy applications.
Understand GHCL ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
| Shareholder Name | Holding % |
|---|---|
| Ares Diversified | 5.09% |
| Dsp Small Cap Fund | 3.85% |
| Arial Holdings 1 | 3.27% |
| Gems Commercial Company Limited | 3.2% |
| Hindustan Commercial Company Limited | 3.2% |
| J.P. Financial Services Pvt Ltd | 3.04% |
| Banjax Limited | 3.03% |
Detailed comparison of GHCL against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
|---|---|---|---|---|---|---|---|---|---|
| TATACHEM | Tata Chemicals | 19 kCr | 15 kCr | -2.60% | -23.00% | 86.3 | 1.27 | - | - |
| GUJALKALI | Gujarat Alkalis & Chemicals | 3.35 kCr | 4.4 kCr |
Comprehensive comparison against sector averages
GHCL metrics compared to Chemicals
| Category | GHCL | Chemicals |
|---|---|---|
| PE | 9.97 | 22.50 |
| PS | 1.55 | 1.05 |
| Growth | -5.1 % | 3.5 % |
GHCL Limited, together with its subsidiaries, manufactures and sells inorganic chemicals in India and internationally. The company offers light soda ash, a basic industrial alkali chemical used in soap and detergents, pulp and paper, iron and steel, aluminum cleaning compounds, water softening and dyeing, in fiber-reactive dyes, effluent treatment, and chemicals products; dense soda ash for use in glass manufacturing, silicate, ultramarine, and other chemical industries; and refined sodium bicarbonate for use in food, food dyes, poultry and animal feed, leather tanning, fire extinguishers, vegetable cleaning, blasting of metals, manufacture of chemicals, pharma, deodorizers, and personal and oral care products. It also provides edible and industrial grade salt products. In addition, the company trades in various chemicals, such as sodium tripolyphosphate, sodium lignosulfonate, PVC resin, titanium dioxide, citric acid, EVA, flour and sand, kaolin clay, and borax pentahydrate. It sells its products under the LION, i-FLO, and Sapan brands. GHCL Limited was incorporated in 1983 and is based in Noida, India.
This is an informational page just to provide a quick 'first look' at the stock. You must do your own deeper research. Know your risk appetite. Consult a SEBI-registered financial advisor before making any investment decisions.
| Sell |
| SMA 20 Signal | Sell |
| SMA 50 Signal | Sell |
| SMA 100 Signal | Sell |
GHCL vs Chemicals (2021 - 2026)
1. Question: Sir, I just wanted to know what was the volume loss that we had due to the shutdown that we had taken at the end of September?
Answer: The volume loss primarily occurred in the second quarter and will continue into October, significantly impacting our third quarter. We estimate the total volume loss to be around 21,000 to 22,000 tons.
2. Question: As you mentioned that we are going to commence our capex, what could be the contribution that we could expect in FY '27 from the bromine and vacuum salt plants?
Answer: We expect that the full benefits from both bromine and vacuum salt projects will materialize next year, potentially contributing around INR70 crores to INR80 crores in EBITDA with margins of about 40% to 45%.
3. Question: What is the decline in pricing year-on-year for us in soda ash?
Answer: The year-on-year decline in soda ash pricing stands at approximately 9%. This decline reflects the challenging market conditions, primarily due to increased cheap imports affecting realizations.
4. Question: Regarding the antidumping duty, could you clarify its impact on pricing in the domestic markets?
Answer: While we believe the antidumping duty will provide a level playing field, its exact impact is hard to quantify until we see how the market dynamics unfold post-approval from the Finance Ministry.
5. Question: What is the anticipated timeline for the Greenfield soda ash project?
Answer: The current timeline indicates that Phase 1 will likely be commissioned by the end of FY '28, pending land clearances and regulatory approvals, which we're actively working to resolve.
6. Question: Can you provide insight into the current realization and EBITDA per metric ton?
Answer: Our current realization per metric ton has declined by 9% year-on-year, with an EBITDA margin of approximately 24%, down from 28% in the same quarter last year.
7. Question: If anti-dumping duties are imposed, how will it affect our EBITDA?
Answer: The actual impact on EBITDA from anti-dumping duties remains uncertain until implemented. However, we anticipate a significant portion should enhance the bottom line if realizations improve.
8. Question: How do you plan to address the incremental soda ash demand in the domestic market?
Answer: We anticipate that Indian producers will ramp up their production to meet the rising demand, and any remaining gap will be fulfilled by imports, given that we project around 3 lakh tons of additional yearly demand.
9. Question: Given the global oversupply situation, how are you looking at your soda ash pricing strategy?
Answer: We remain cautious about pricing, expecting it to be under pressure in the short term due to global market dynamics. However, we are committed to cost optimization to navigate this challenging environment.
10. Question: Can you elaborate on your expected cash generation and buyback strategy?
Answer: We expect to generate INR500 crores to INR600 crores in annual cash flow, which supports our decision to initiate a buyback program of INR300 crores while continuing our strategic investments and providing returns to shareholders.
| Hexabond Limited | 2.96% |
| Oval Investment Private Limited | 2.82% |
| Varanasi Commercial Ltd. | 1.76% |
| UTI Large & Mid Cap Fund | 1.63% |
| Lhonak Enternational Private Limited | 1.49% |
| Aarkay Investments Pvt. Ltd. | 1.37% |
| Investor Education and Protection | 1.37% |
| Franklin India Small Cap fund | 1.26% |
| Rajiv Kumar | 1.25% |
| Dolly Khanna | 1.24% |
| Noble Communications Pvt Ltd | 1.23% |
| Ishares Core Msci Emerging Markets Etf | 1.13% |
| Atul Jain | 1.06% |
Distribution across major stakeholders
Distribution across major institutional holders
| -9.60% |
| -33.00% |
| 22797.5 |
| 0.76 |
| - |
| - |
| DCW | DCW | 1.35 kCr | 2.05 kCr | -21.30% | -42.20% | 26.98 | 0.66 | - | - |
| SRHHYPOLTD | Sree Rayalaseema Hi-Strength Hypo | 768.04 Cr | 706.98 Cr | -13.40% | -33.70% | 8.6 | 1.09 | - | - |
| 594 |
| 628 |
| 596 |
| 580 |
| 614 |
| Profit Before exceptional items and Tax | -1.4% | 143 | 145 | 195 | 209 | 227 | 196 |
| Total profit before tax | -1.4% | 143 | 145 | 195 | 209 | 227 | 196 |
| Current tax | -5.4% | 36 | 38 | 47 | 52 | 60 | 50 |
| Deferred tax | 119.1% | 1.3 | -0.57 | 3.63 | 6.45 | -1.36 | -8.67 |
| Total tax | -2.7% | 37 | 38 | 50 | 59 | 59 | 42 |
| Total profit (loss) for period | -0.9% | 106 | 107 | 144 | 150 | 168 | 155 |
| Other comp. income net of taxes | 57.8% | 0.03 | -1.3 | 0.59 | -3.51 | 0.28 | 0.53 |
| Total Comprehensive Income | 1% | 106 | 105 | 145 | 147 | 169 | 155 |
| Earnings Per Share, Basic | 1% | 11.26 | 11.16 | 15.1 | 15.72 | 17.7 | 16.28 |
| Earnings Per Share, Diluted | 1.1% | 11.26 | 11.15 | 15.07 | 15.7 | 17.64 | 16.22 |
| 1.8% |
| 114 |
| 112 |
| 134 |
| 153 |
| 172 |
| 188 |
| Finance costs | -37.5% | 16 | 25 | 39 | 64 | 90 | 118 |
| Depreciation and Amortization | 9.9% | 112 | 102 | 94 | 117 | 133 | 131 |
| Other expenses | -5.2% | 1,139 | 1,201 | 1,337 | 957 | 766 | 899 |
| Total Expenses | -10.7% | 2,435 | 2,727 | 3,197 | 2,977 | 2,427 | 2,758 |
| Profit Before exceptional items and Tax | 8.6% | 838 | 772 | 1,387 | 812 | 422 | 514 |
| Exceptional items before tax | -100.5% | 0 | 219 | 55 | -24.97 | 0 | -10 |
| Total profit before tax | -15.5% | 838 | 991 | 1,443 | 787 | 422 | 504 |
| Current tax | 11.5% | 214 | 192 | 357 | 204 | 106 | 141 |
| Deferred tax | -166.2% | -2.43 | 6.18 | -5.83 | 8.4 | 6.56 | -42.93 |
| Total tax | 7.1% | 212 | 198 | 351 | 212 | 112 | 98 |
| Total profit (loss) for period | -21.2% | 626 | 794 | 1,117 | 634 | 310 | 406 |
| Other comp. income net of taxes | -19.8% | -0.21 | -0.01 | -3.61 | 1.65 | 4.73 | -5.53 |
| Total Comprehensive Income | -21.2% | 626 | 794 | 1,113 | 636 | 315 | 401 |
| Earnings Per Share, Basic | -61% | 65.72 | 166.78 | 117.45 | 66.55 | 32.62 | 41.51 |
| Earnings Per Share, Diluted | -61% | 65.56 | 166.58 | 117.45 | 66.35 | 32.54 | 41.51 |
| 0.1% |
| 1,808 |
| 1,807 |
| 1,828 |
| 1,810 |
| 1,784 |
| 1,719 |
| Capital work-in-progress | 44.7% | 370 | 256 | 105 | 55 | 42 | 109 |
| Investment property | - | - | 0 | 0 | - | - | 0.01 |
| Goodwill | - | 0 | 0 | 0 | 0 | 0 | 0 |
| Non-current investments | 6.2% | 18 | 17 | 17 | 14 | 15 | 15 |
| Loans, non-current | 2.4% | 0.6 | 0.59 | 0.77 | 0.86 | 0.96 | 0.76 |
| Total non-current financial assets | 8.3% | 40 | 37 | 56 | 34 | 33 | 32 |
| Total non-current assets | 5.7% | 2,360 | 2,232 | 2,125 | 1,990 | 1,971 | 1,968 |
| Total assets | 2.1% | 4,268 | 4,179 | 3,884 | 3,761 | 3,556 | 5,125 |
| Borrowings, non-current | -23% | 48 | 62 | 75 | 115 | 175 | 243 |
| Total non-current financial liabilities | -18.8% | 66 | 81 | 94 | 126 | 188 | 255 |
| Provisions, non-current | -14% | 5.06 | 5.72 | 5.65 | 5.84 | 5.9 | 5.77 |
| Total non-current liabilities | -3.4% | 317 | 328 | 338 | 377 | 433 | 504 |
| Borrowings, current | -22.9% | 28 | 36 | 81 | 82 | 93 | 105 |
| Total current financial liabilities | -15.7% | 248 | 294 | 273 | 341 | 283 | 379 |
| Provisions, current | 13.3% | 18 | 16 | 13 | 12 | 15 | 12 |
| Current tax liabilities | - | - | - | 37 | - | 23 | 37 |
| Total current liabilities | -13.1% | 320 | 368 | 381 | 414 | 384 | 428 |
| Total liabilities | -8.8% | 636 | 697 | 719 | 791 | 817 | 1,191 |
| Equity share capital | 0% | 96 | 96 | 96 | 96 | 96 | 96 |
| Total equity | 4.3% | 3,631 | 3,483 | 3,165 | 2,970 | 2,739 | 3,934 |
| Total equity and liabilities | 2.1% | 4,268 | 4,179 | 3,884 | 3,761 | 3,556 | 5,125 |
| -12.8% |
| 863 |
| 989 |
| 1,342 |
| 844 |
| - |
| - |
| Interest paid | - | 0 | 0 | 0 | 0.4 | - | - |
| Income taxes paid (refund) | 17.3% | 225 | 192 | 443 | 205 | - | - |
| Net Cashflows From Operating Activities | -20% | 638 | 797 | 899 | 639 | - | - |
| Proceeds from sales of PPE | 1350% | 13 | 0.04 | 7.58 | -345.11 | - | - |
| Purchase of property, plant and equipment | 196.2% | 315 | 107 | 358 | 0 | - | - |
| Proceeds from sales of investment property | -27.4% | 1,770 | 2,436 | 3,347 | 0.43 | - | - |
| Purchase of investment property | -20.1% | 1,955 | 2,446 | 3,695 | 0 | - | - |
| Proceeds from sales of long-term assets | - | 440 | 0 | 262 | 0 | - | - |
| Purchase of other long-term assets | - | 342 | 0 | 0 | 0 | - | - |
| Dividends received | 2.4% | 0.2 | 0.18 | 0.13 | 0.05 | - | - |
| Interest received | 210% | 32 | 11 | 1.97 | 0.4 | - | - |
| Other inflows (outflows) of cash | 99.8% | 0 | -428.84 | 0 | 0 | - | - |
| Net Cashflows From Investing Activities | 33% | -357.66 | -534.04 | -433.47 | -344.23 | - | - |
| Proceeds from issuing shares | -97.6% | 1.1 | 5.15 | 3.53 | 5.06 | - | - |
| Proceeds from borrowings | - | 0 | 0 | 0 | 100 | - | - |
| Repayments of borrowings | -34.7% | 99 | 151 | 342 | 83 | - | - |
| Payments of lease liabilities | - | 1.58 | 0 | 2.68 | 2.28 | - | - |
| Dividends paid | -31.5% | 114 | 166 | 143 | 52 | - | - |
| Interest paid | -38.1% | 14 | 22 | 45 | 65 | - | - |
| Other inflows (outflows) of cash | -18.3% | -1.84 | -1.4 | -6.21 | 0.09 | - | - |
| Net Cashflows from Financing Activities | 31.7% | -230.32 | -337.67 | -535.13 | -97.12 | - | - |
| Net change in cash and cash eq. | 164.7% | 50 | -74.76 | -69.66 | 198 | - | - |