BSE:530001

Stock Analysis Report

Gujarat Alkalies and Chemicals

Executive Summary

Gujarat Alkalies and Chemicals Limited produces and sells various chemical products in India.

Rewards

Trading at 38.3% below its fair value

Revenue is forecast to grow 15.99% per year

Pays a reliable dividend of 2.04%

Risk Analysis

No risks detected for 530001 from our risk checks.


Snowflake Analysis

Flawless balance sheet, undervalued and pays a dividend.

Share Price & News

How has Gujarat Alkalies and Chemicals's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 530001 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.3%

530001

-0.7%

IN Chemicals

-2.9%

IN Market


1 Year Return

-27.7%

530001

6.9%

IN Chemicals

2.8%

IN Market

Return vs Industry: 530001 underperformed the Indian Chemicals industry which returned 6.9% over the past year.

Return vs Market: 530001 underperformed the Indian Market which returned 2.8% over the past year.


Shareholder returns

530001IndustryMarket
7 Day-1.3%-0.7%-2.9%
30 Day-5.0%-2.2%-1.4%
90 Day-13.2%5.7%6.2%
1 Year-26.5%-27.7%9.4%6.9%4.8%2.8%
3 Year17.4%12.9%51.9%45.9%31.3%24.4%
5 Year146.7%127.8%117.2%101.3%42.7%29.9%

Price Volatility Vs. Market

How volatile is Gujarat Alkalies and Chemicals's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Gujarat Alkalies and Chemicals undervalued compared to its fair value and its price relative to the market?

38.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 530001 (₹391.55) is trading below our estimate of fair value (₹634.17)

Significantly Below Fair Value: 530001 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 530001 is good value based on its PE Ratio (4.8x) compared to the Chemicals industry average (10.2x).

PE vs Market: 530001 is good value based on its PE Ratio (4.8x) compared to the Indian market (12.6x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 530001's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 530001 is good value based on its PB Ratio (0.6x) compared to the IN Chemicals industry average (1x).


Next Steps

Future Growth

How is Gujarat Alkalies and Chemicals forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

16.0%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if 530001's forecast earnings growth is above the savings rate (6.5%).

Earnings vs Market: Insufficient data to determine if 530001's earnings are forecast to grow faster than the Indian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 530001's revenue (16% per year) is forecast to grow faster than the Indian market (11.5% per year).

High Growth Revenue: 530001's revenue (16% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 530001's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Gujarat Alkalies and Chemicals performed over the past 5 years?

30.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 530001 has high quality earnings.

Growing Profit Margin: 530001's current net profit margins (19.2%) are lower than last year (21.8%).


Past Earnings Growth Analysis

Earnings Trend: 530001's earnings have grown significantly by 30.1% per year over the past 5 years.

Accelerating Growth: 530001's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 530001 had negative earnings growth (-3.2%) over the past year, making it difficult to compare to the Chemicals industry average (10.4%).


Return on Equity

High ROE: 530001's Return on Equity (13.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Gujarat Alkalies and Chemicals's financial position?


Financial Position Analysis

Short Term Liabilities: 530001's short term assets (₹16.1B) exceed its short term liabilities (₹5.7B).

Long Term Liabilities: 530001's short term assets (₹16.1B) exceed its long term liabilities (₹7.3B).


Debt to Equity History and Analysis

Debt Level: 530001's debt to equity ratio (3.6%) is considered satisfactory.

Reducing Debt: 530001's debt to equity ratio has reduced from 7.1% to 3.6% over the past 5 years.

Debt Coverage: 530001's debt is well covered by operating cash flow (452.5%).

Interest Coverage: 530001 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 530001 has a high level of physical assets or inventory.

Debt Coverage by Assets: 530001's debt is covered by short term assets (assets are 10x debt).


Next Steps

Dividend

What is Gujarat Alkalies and Chemicals's current dividend yield, its reliability and sustainability?

2.04%

Current Dividend Yield


Dividend Yield vs Market

company2.0%marketbottom25%0.6%markettop25%2.6%industryaverage0.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 530001's dividend (2.04%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: 530001's dividend (2.04%) is low compared to the top 25% of dividend payers in the Indian market (2.56%).


Stability and Growth of Payments

Stable Dividend: 530001's dividends per share have been stable in the past 10 years.

Growing Dividend: 530001's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (9.9%), 530001's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Gujarat Alkalies and Chemicals's salary, the management and board of directors tenure and is there insider trading?

1.5yrs

Average board tenure


CEO

Prem Gera (60yo)

0yrs

Tenure

₹3,366,830

Compensation

Mr. Prem Kumar Gera, IAS, has been the Managing Director of Gujarat Alkalies and Chemicals Limited since February 17, 2016 and also serves as its Chief Executive Officer. Mr. Gera served as the Managing Di ...


CEO Compensation Analysis

Compensation vs Market: Prem's total compensation ($USD47.53K) is below average for companies of similar size in the Indian market ($USD407.13K).

Compensation vs Earnings: Prem's compensation has been consistent with company performance over the past year.


Board Age and Tenure

1.5yrs

Average Tenure

63.5yo

Average Age

Experienced Board: 530001's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Vinayak Kudtarkar

    Chief Financial Officer

    • Tenure: 0.5yrs
  • Sanjay Bhatt

    Compliance Officer

    • Tenure: 5.6yrs
    • Compensation: ₹3.68m
  • Prem Gera (60yo)

    CEO, MD & Director

    • Tenure: 0yrs
    • Compensation: ₹3.37m
  • G. Paliwal

    Executive Director of Marketing

    • Tenure: 0yrs
  • P. Pujara

    Executive Director of CPP & Head of PMO

    • Tenure: 0yrs
  • T. Trivedi

    General Manager of Operation

    • Tenure: 0yrs

Board Members

  • Arvind Agarwal (59yo)

    Additional Director

    • Tenure: 1.5yrs
    • Compensation: ₹10.00k
  • Manoj Das (53yo)

    Additional Director

    • Tenure: 2.3yrs
    • Compensation: ₹80.00k
  • S. Dangayach (67yo)

    Independent Director

    • Tenure: 0.3yrs
  • Prem Gera (60yo)

    CEO, MD & Director

    • Tenure: 0yrs
    • Compensation: ₹3.37m
  • Rajiv Jain (68yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: ₹350.00k
  • Vasuben Trivedi (70yo)

    Independent Woman Director

    • Tenure: 1.3yrs
    • Compensation: ₹110.00k
  • Rohitkumar Patel

    Independent Non Executive Director

    • Tenure: 0.08yrs

Company Information

Gujarat Alkalies and Chemicals Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Gujarat Alkalies and Chemicals Limited
  • Ticker: 530001
  • Exchange: BSE
  • Founded: 1973
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: ₹27.983b
  • Shares outstanding: 73.44m
  • Website: https://www.gacl.com

Number of Employees


Location

  • Gujarat Alkalies and Chemicals Limited
  • PO Petrochemicals
  • Vadodara
  • Gujarat
  • 391346
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
530001BSE (Mumbai Stock Exchange)YesEquity SharesININRAug 1997
GUJALKALINSEI (National Stock Exchange of India)YesEquity SharesININRAug 1997

Biography

Gujarat Alkalies and Chemicals Limited produces and sells various chemical products in India. It provides caustic soda lye, caustic soda flake, caustic soda prill, liquid chlorine, hydrochloric acid, and c ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 12:36
End of Day Share Price2019/12/11 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.