High Scoring Large Cap stocks have outperformed low scoring stocks by 90% over last 4 years
Profitability: Recent profitability of 15% is a good sign.
Technicals: Bullish SharesGuru indicator.
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Smart Money: Smart money has been increasing their position in the stock.
Balance Sheet: Strong Balance Sheet.
Dividend: Dividend paying stock. Dividend yield of 2.26%.
Momentum: Stock has a weak negative price momentum.
Past Returns: Underperforming stock! In past three years, the stock has provided -2.3% return compared to 8.9% by NIFTY 50.
Growth: Poor revenue growth. Revenue grew at a disappointing -4.1% on a trailing 12-month basis.
Valuation | |
|---|---|
| Market Cap | 4.18 kCr |
| Price/Earnings (Trailing) | 9.12 |
| Price/Sales (Trailing) | 1.33 |
| EV/EBITDA | 5.5 |
| Price/Free Cashflow | 9.86 |
| MarketCap/EBT | 6.5 |
| Enterprise Value | 4.19 kCr |
Fundamentals | |
|---|---|
| Revenue (TTM) | 3.14 kCr |
| Rev. Growth (Yr) | -0.10% |
| Earnings (TTM) | 472.46 Cr |
| Earnings Growth (Yr) | -23% |
Profitability | |
|---|---|
| Operating Margin | 20% |
| EBT Margin | 20% |
| Return on Equity | 13.3% |
| Return on Assets | 10.99% |
| Free Cashflow Yield | 10.15% |
Growth & Returns | |
|---|---|
| Price Change 1W | 2% |
| Price Change 1M | -12% |
| Price Change 6M | -21% |
| Price Change 1Y | -27.3% |
| 3Y Cumulative Return | -2.3% |
| 5Y Cumulative Return | 11.4% |
| 7Y Cumulative Return | 8.2% |
| 10Y Cumulative Return | 10.3% |
Cash Flow & Liquidity | |
|---|---|
| Cash Flow from Investing (TTM) | -290.64 Cr |
| Cash Flow from Operations (TTM) | 687.3 Cr |
| Cash Flow from Financing (TTM) | -451.17 Cr |
| Cash & Equivalents | 44.12 Cr |
| Free Cash Flow (TTM) | 423.63 Cr |
| Free Cash Flow/Share (TTM) | 46.08 |
Balance Sheet | |
|---|---|
| Total Assets | 4.3 kCr |
| Total Liabilities | 747.82 Cr |
| Shareholder Equity | 3.55 kCr |
| Current Assets | 1.92 kCr |
| Current Liabilities | 438.44 Cr |
| Net PPE | 1.79 kCr |
| Inventory | 596.77 Cr |
| Goodwill | 0.00 |
Capital Structure & Leverage | |
|---|---|
| Debt Ratio | 0.01 |
| Debt/Equity | 0.02 |
| Interest Coverage | 70.29 |
| Interest/Cashflow Ops | 77.28 |
Dividend & Shareholder Returns | |
|---|---|
| Dividend/Share (TTM) | 12 |
| Dividend Yield | 2.26% |
| Buy Backs (1Y) | -4% |
| Shares Dilution (3Y) | -3.8% |
Profitability: Recent profitability of 15% is a good sign.
Technicals: Bullish SharesGuru indicator.
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Smart Money: Smart money has been increasing their position in the stock.
Balance Sheet: Strong Balance Sheet.
Dividend: Dividend paying stock. Dividend yield of 2.26%.
Momentum: Stock has a weak negative price momentum.
Past Returns: Underperforming stock! In past three years, the stock has provided -2.3% return compared to 8.9% by NIFTY 50.
Growth: Poor revenue growth. Revenue grew at a disappointing -4.1% on a trailing 12-month basis.
Investor Care | |
|---|---|
| Dividend Yield | 2.26% |
| Dividend/Share (TTM) | 12 |
| Buy Backs (1Y) | -4% |
| Earnings/Share (TTM) | 49.8 |
Financial Health | |
|---|---|
| Current Ratio | 4.38 |
| Debt/Equity | 0.02 |
Technical Indicators | |
|---|---|
| RSI (14d) | 26.35 |
| RSI (5d) | 56.02 |
| RSI (21d) | 39.99 |
| MACD Signal | Sell |
| Stochastic Oscillator Signal | Buy |
| SharesGuru Signal | Buy |
| RSI Signal | Buy |
| RSI5 Signal | Hold |
| RSI21 Signal | Hold |
| SMA 5 Signal | Buy |
| SMA 10 Signal | Buy |
| SMA 20 Signal | Sell |
| SMA 50 Signal | Sell |
| SMA 100 Signal | Sell |
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.
Management provided an optimistic outlook emphasizing GHCL's positioning amid challenging external conditions. The key points include:
Revenue and Financial Performance: For Q4 FY26, GHCL reported revenues of INR 808 crores, slightly up from INR 807 crores YoY, while total FY26 revenues were INR 3,144 crores, similar to INR 3,273 crores in the previous year. EBITDA for Q4 stood at INR 194 crores (margin: 23.9%) compared to INR 244 crores Yr/Yr, and PAT for Q4 was INR 120 crores (net margin: 14.8%).
Market Dynamics: The global soda ash market faces oversupply and pricing pressures, particularly influenced by reduced demand from China. Conversely, in India, demand remains robust, especially in solar glass applications, indicating potential growth in domestic consumption.
Cost Management: Despite rising input costs due to geopolitical tensions and supply chain disruptions, management highlighted their effective cost-control measures and ability to pass increased costs onto customers, which helped maintain profit margins.
Growth Initiatives: The bromine and vacuum salt projects are nearing completion, with full operational capability expected by Q1 FY27. These initiatives are anticipated to contribute ~INR 120 crores in revenue for the year, with an EBITDA margin of 40-45%.
Shareholder Returns: GHCL reinforced its commitment to shareholder value, having returned INR 415 crores through dividends and buybacks in FY26, which represents approximately 87% of their total PAT.
Future Outlook: FY27 marks a new earning phase due to the commissioning of value-added products, reducing reliance on commodity soda ash pricing cycles. Management projects a favorable pricing environment as domestic prices stabilize and global dynamics improve.
Overall, the outlook suggests resilience and strategic positioning to capitalize on upcoming improvements in market conditions.
Q1: How much volume growth have you experienced, and was it offset by negative pricing?
A1: We witnessed approximately 11% volume growth, but pricing decreased by around 10%. This dynamic made our top line largely flat on a year-over-year basis.
Q2: Do you expect pricing to improve from here?
A2: While it's difficult to predict with certainty in this volatile environment, restricted imports and increased costs due to supply chain disruptions have started leading to some pricing improvements.
Q3: What are your plans regarding the new soda ash facility?
A3: Land acquisitions are taking longer, so it's currently difficult to provide a specific timeline for starting construction. We'll update investors once these processes are completed.
Q4: What is the funding strategy for the Greenfield project?
A4: The Greenfield soda ash project will be funded through a mix of internal accruals and well-managed debt, maintaining a debt-equity ratio below one.
Q5: What is your anticipated revenue from the bromine and vacuum salt projects for FY27?
A5: We expect a revenue contribution of approximately INR 120 crores for FY27 from these projects, with an EBITDA margin of around 40-45%.
Q6: How have pricing and costs changed with the bromine and vacuum salt projects?
A6: Pricing for bromine has increased significantly, which is a clear advantage for us. Vacuum salt pricing remains stable, and we anticipate continued profitability as we ramp up production.
Q7: What factors are influencing cost escalations currently?
A7: We've seen increases in limestone and energy costs, particularly coal, which has risen from approximately $120 to $136. Logistics costs have also impacted our operational expenses.
Q8: What is the company's stance on the anti-dumping duty application?
A8: The anti-dumping application has been recommended but is awaiting a decision from the finance minister. We also filed for a safeguard duty, which is currently under investigation.
Q9: Can you clarify the reasons behind the recent buyback decision?
A9: The primary motivation for the INR 300 crore buyback was to reward shareholders. Pricing levels are subjective and for investors to decide upon.
Q10: What capacity utilization levels do you project for the bromine and vacuum salt projects?
A10: As the projects ramp up, we expect gradual capacity utilization, reaching full capacity by the end of the fiscal year. Revenue will peak at around INR 170 crores once fully operational.
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% |
| Hindustan Commercial Company Limited | 3.24% |
| Gems Commercial Company Limited | 3.2% |
| J.P. Financial Services Pvt Ltd | 3.04% |
| Banjax Limited | 3.03% |
| Hexabond Limited | 2.96% |
| Oval Investment Private Limited | 2.82% |
| UTI Large & Mid Cap Fund | 2.78% |
| Varanasi Commercial Ltd. | 1.76% |
| Lhonak Enternational Private Limited | 1.49% |
| Aarkay Investments Pvt. Ltd. | 1.37% |
| IEPF | 1.36% |
| Franklin India Small Cap fund | 1.26% |
| Rajiv Kumar | 1.25% |
| Noble Communications Pvt Ltd | 1.23% |
| Ishares Core Msci Emerging Markets Etf | 1.22% |
| Atul Jain | 1.06% |
| Vanguard total International Stock Index Fund | 1.04% |
Distribution across major stakeholders
Distribution across major institutional holders
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 | 19.31 kCr | 14.9 kCr | -5.20% | -15.00% | -11.29 | 1.3 | - | - |
| GUJALKALI | Gujarat Alkalis & Chemicals | 4.99 kCr | 4.47 kCr | -7.60% | +16.40% | -580.81 | 1.13 | - | - |
| DCW | DCW | 1.39 kCr | 2.16 kCr | -1.00% | -39.20% | 28.67 | 0.64 | - | - |
| SRHHYPOLTD | Sree Rayalaseema Hi-Strength Hypo | 934.54 Cr | 716.52 Cr | +9.90% | -6.40% | 10.16 | 1.3 | - | - |
Comprehensive comparison against sector averages
GHCL metrics compared to Chemicals
| Category | GHCL | Chemicals |
|---|---|---|
| PE | 8.94 | 55.54 |
| PS | 1.30 | 1.15 |
| Growth | -4.1 % | 2.9 % |
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.
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GHCL vs Chemicals (2021 - 2026)