Fundamental Analysis

GUJARAT ALKALIES & CHEMICALS LTD.

Ticker : 530001
BUY : Rs 429.15 
Target : Rs 480

Gujarat Alkalies & Chemicals Limited (GACL) is an Indian chemical manufacturing company. GACL is one of the largest producers of caustic soda in India with a production capacity of 1,087 TPD. On the consolidated quarterly front, the company recorded net sales & operating income of Rs 671.42 crore for Q4FY21, recording a rise of 8.01 per cent from its net sales & operating income of Rs 621.63 crore reported for Q4FY20. The operating profit gained 7.66 per cent to reach Rs 105.38 crore in Q4FY21 from Rs 97.88 crore posted in Q4FY20. The net profit was reported at Rs 34.96 crore in Q4FY21 from Rs 11.98 crore in Q4FY20, clocking significant gains. In spite of the current pandemic situation, the Indian chemical industry has numerous opportunities, which are yet to be explored while globally, India stands to be the most preferred destination for investment in this area. Hence, we recommend BUY.