Rs 229 to Rs 578: This chemical stock has rallied by 150% in a year!

resr 5paisa Research Team 13th December 2022 - 07:05 pm
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These returns are nearly 7.5x the returns delivered by the S&P BSE 500 index.

GHCL Ltd, an S&P BSE 500 company, has given its investors exceptional returns in the last one year. During this period, the stock price has rallied by over 150%, going from Rs 229.5 on 1st April 2021 to Rs 578.25 on 1st April 2022.

On the other hand, the S&P BSE 500 index, which the company is a part of, has delivered returns of only 20.8% YoY. During this period, the index jumped from the levels of 19866.86 on 1st April 2021 to 24003.84 on 1st April 2022.

Established in 1983, GHCL Ltd has its footprints in the Chemicals, Textiles and Consumer Products segments. In the chemicals segment, the company manufactures Soda Ash (Anhydrous Sodium Carbonate), a major raw material for detergents, glass & ceramics industries and Sodium Bicarbonate (baking soda).

In the consumer products segment, the company manufactures and sells edible salt and industrial grade salt. It also markets spices, blended spices, and honey in the country under the brand name i-FLO.

The company was also in the business of home textiles manufacturing. However, effective from 2nd April 2022, the company sold this business to lndo Count Industries Limited for a total consideration of Rs 608.3 crore. The proceeds of this divestment shall be used to further initiatives such as the Greenfield project, product basket expansion, clean energy and ESG initiatives, automation and exploring opportunities to enter into JVs.

In the recent quarter Q3FY22, on a consolidated basis, the company’s net revenue went up 41.97% YoY to Rs 1004.76 crore. The PBIDT (ex OI) increased by 38.05% YoY to Rs 249.10 crore. Similarly, the net profit jumped by 51.94% YoY to Rs 152.97 crore.

At the time of market close, the shares of GHCL Ltd were trading at Rs 565, a decrease of 2.29% from the previous closing price of Rs 578.25 on BSE. The stock has a 52-week high & low of Rs 584.05 & Rs 215.35 respectively on BSE.

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