GHCL Ltd., incorporated in the year 1983, is a Small Cap company (having a market cap of Rs 1532.09 Crore) operating in Chemicals sector.
For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 806.51 Crore, up 78.38 % from last quarter Sales of Rs 452.12 Crore and down 3.47 % from last year same quarter Sales of Rs 835.52 Crore Company reported net profit after tax of Rs 84.46 Crore in latest quarter.
Near-term demand outlook has improved for soda ash and Textiles business on a robust recovery in end-user industries. The brokerage is positive on the soda ash business for its strong cash generation capabilities and sustainable demand across various sectors. The final outcome of soda ash anti-dumping duty for USA/Turkey is expected in 2-3 months. The upward price trend in soda ash and sustenance in the textiles business hold the key going forward. It rolls forward estimates to FY23 earnings and revise TP to Rs186 (3x EV/EBITDA). It maintains Buy with OW in EAP. Key downside risks are significant soda ash price correction and slower-than-expected recovery.
Promoters held 19.3 per cent stake in the company as of Sept 30, 2020, while FIIs held 14.3 per cent, DIIs 21.2 per cent and public and others 45.2 per cent.