BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
HDFC Securities Retail Research
Gujarat Alkalies and Chemicals Ltd. is the second-largest player in the domestic caustic chlorine industry with integrated operations. It produces a wide range of products, including caustic soda, liquid and gaseous chlorine, hydrogen peroxide, phosphoric acid and aluminium chloride, which find application across a diversified group of industries, including textile, pulp and paper, aluminium, detergents, soaps, rayon, plastics, pharmaceuticals, water treatment, and agricultural chemicals.
Gujarat Alkalies derived 45% of revenue from caustic soda, 9% from chloromethane, 7% from caustic potash, 8% from hydrogen peroxide, 7% from phosphoric acid, 9% from aluminium chloride and the balance from others in FY22.
Company registered strong revenue and robust growth in profitability led by healthy volume growth and robust realisations. In Q1 FY23, the company posted strong set of numbers on the back of better realisations.
We think that given the commissioning of forward integration projects, expansions, power saving initiatives and National Aluminium Company Ltd. joint venture could lead to scale economies/operating leverage and a rerating of the stock in addition to earnings expansion despite a largely commodity portfolio.
Click on the attachment to read the full report:
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.