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You are here : IndiaNotes >> Research & Analysis >> Companies >> Gujarat Alkalies & Chemicals Ltd. >> Research

Gujarat Alkalies and Chemicals Q1FY18 Results: Firstcall overweight for medium to long term investment

Firstcall India Equity | 11 Sep, 2017  | Follow Author | Add to my Favourites 
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  • Gujarat Alkalies and Chemicals Limited is a chemical manufacturing company which offers Caustic Soda Lye and Caustic Soda Flakes.

  • Revenue for the quarter stood at Rs. 6039.60 million as against Rs 5832.70 million, when compared with the prior year period.

  • During Q1 FY18, EBIDTA is Rs. 1619.60 million as against Rs. 1416.70 million in the corresponding period of the previous year.

  • During Q1 FY18, Profit before tax stood at Rs.1281.70 million from Rs. 1119.80 million in Q1 F Y17.

  • The company’s net profit stood at Rs. 953.60 million against Rs. 862.60 million in the corresponding quarter ending of previous year.

  • EPS of the company stood at Rs. 12.98 a share during the quarter, as against Rs. 11.75 per share over previous year period.

  • For the first quarter ended on 3oth June, 2017 the overall production growth was 2.77% as against corresponding period of previous year.

  • During the quarter, EBIDTA and PAT margins are stood at 26.82% and 15.79% respectively

  • Net Sales and PAT of the company are expected to grow at a CAGR of 9% and 16% over 2016 to 2019E, respectively.


OUTLOOK AND CONCLUSION


At the current market price of Rs.469.10, the stock P/E ratio is at 9.54 x F Y18E and 8.35 x FY19E respectively.


Earning per share (EPS) of the company for the earnings for F Y18E and FY19E is seen at Rs. 49.17 and Rs. 56.15 respectively.


Net Sales and PAT of the company are expected to grow at a CAGR of 9% and 16% over 2016 to 2019E, respectively.


On the basis of EV/EBITDA, the stock trades at 6.16 x for F Y18E and 5.51 x for F Y19E.


Price to Book Value of the stock is expected to be at 0.93 x and 0.83 x for F Y18E and F Y19E respectively.


Hence, we say that, we are Overweight in this particular scrip for Medium to Long term investment.


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About Firstcall India Equity

Firstcall India Equity of Firstcall India Equity Advisors Pvt. Limited (FIEA), is a leading financial services provider in India and a SEBI Registered Category-I Merchant Banker. FIEA is a culmination of a credible Equity Research Capabilities, Long Standing Relationship with leading FIIs, DFIs, MFs, Overseas Pension Funds etc. The company’s research caters to the needs of the largest news wire and media houses of the world namely Reuters, Thomson, Capital IQ, Themarkets.com, Emerging Markets Euro money Publications-UK. The Company is among the major players in the Debt and Equity markets.


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Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. Neither the author nor IndiaNotes.com accept any liability whatsoever arising from the use of any of the above contents.




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