- 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. 5950.00 million as against Rs. 5872.90 million, when compared with the prior year period.
- During Q2 FY18, EBIDTA is Rs. 1887.40 million as against Rs. 1444.70 million in the corresponding period of the previous year.
- During Q2 FY18, Profit before tax stood at Rs. 1484.20 million from Rs. 1143.40 million in Q2 FY17.
- The company’s net profit stood at Rs. 1063.90 million against Rs. 874.20 million in the corresponding quarter ending of previous year.
- EPS of the company stood at Rs. 14.49 a share during the quarter, as against Rs. 11.90 per share over previous year period.
- During H1 FY18, Net sales stood at Rs.11989.60 million as against Rs. 11705.60 million in the corresponding period of the previous year.
- During H1 FY18, Net Profit Stood at Rs. 2017.50 million as against Rs.1736.80 million in the corresponding period of the previous year.
- During the quarter, EBIDTA and PAT margins are stood at 31.72% and 17.88% respectively.
- Net Sales and PAT of the company are expected to grow at a CAGR of 7% and 16% over 2016 to 2019E, respectively.
Outlook and Valuation
At the current market price of Rs.762.00, the stock P/E ratio is at 15.52 X F Y18E and 13.68 X F Y19E respectively. Earning per share (EPS) of the company for the earnings for F Y18E and FY19E is seen at Rs. 49.09 and Rs. 55.92 respectively.
Net Sales and PAT of the company are expected to grow at a CAGR of 7% and 16% over 2016 to 2019E, respectively.
On the basis of EV/EBITDA, the stock trades at 9.46 X for F Y18E and 8.34X for FY19E.
Price to Book Value of the stock is expected to be at 1.51 X and 1.36 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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