Established in 1983, GHCL has emerged as a prominent player in the chemical, yarn, and commodity products sectors. Over the decades, GHCL has built a strong foundation and diversified portfolio, demonstrating resilience and innovation in these dynamic industries.
In this article, we delve into the comprehensive profile of GHCL, exploring its journey, market presence, key products, and notable achievements. From its inception to its current standing, we uncover the strategies and values that have propelled GHCL toward sustained growth and success. Join us as we unravel the story behind this influential enterprise.
About GHCL
GHCL operates across diverse business divisions encompassing Chemicals, Yarn, Consumer Products, and Trading. In its Chemical Division, GHCL specializes in manufacturing Soda Ash, offering both Light and Dense variants used in glassmaking, detergents, paper production, solar glass, and lithium-ion batteries. Additionally, the company produces Sodium Bicarbonate from Light Soda Ash for applications in the food, poultry, and pharmaceutical industries. The Yarn Division of GHCL manufactures various yarn types including Open-end, Ring Spun Cotton, TFO, and Vortex yarns, catering to apparel and home textile segments such as bed sheets and curtains. Under its Consumer Products Division, GHCL markets iodized salts under the i-FLO and Sapan brands, offering Triple Refined, Crystal, and Refined variants.
GHCL’s manufacturing capabilities are robust. The Soda Ash facility located in Sutrapada, Gujarat, has an annual production capacity of 1.2 million metric tons, along with 0.12 million metric tons for Sodium Bicarbonate. GHCL is also expanding its operations to include vacuum salt production. The Yarn Division operates two manufacturing units in Tamil Nadu, producing 30,000 tons of yarn annually. Additionally, GHCL’s salt refinery in Chennai has a capacity of 0.1 million metric tons per annum for edible salt production. This integrated approach underscores GHCL’s commitment to quality and innovation across its product spectrum.
GHCL Q3 Financial Performance Highlights and Investment Initiatives
- GHCL’s net profit for Q3 FY2023 declined sharply by 60.7% year-on-year to ₹99.9 crore compared to ₹254.1 crore in the same period last year.
- Revenue from operations decreased by 27.6% year-on-year to ₹797.3 crore from ₹1,101.6 crore in the corresponding quarter of the previous fiscal.
- EBITDA (earnings before interest, tax, depreciation, and amortization) plummeted by 59.3% to ₹149.5 crore in Q3 FY2023, down from ₹366.7 crore in Q3 FY2022.
- The EBITDA margin for the reporting quarter was 18.7%, significantly lower than the 33.3% margin recorded in the same quarter of the previous fiscal year.
- GHCL announced signing two MoUs worth ₹3,450 crore in Gujarat, focused on expanding the Greenfield Soda Ash plant and establishing a new vacuum salt plant in Kutch district, as well as investing in mining activities for bentonite and sand in Bhavnagar.
Below are the trading platforms that you can use to purchase GHCL shares:
➤ Zerodha
➤ Upstox
➤ Groww
➤ AngelOne
➤ ICICIDirect
| When | Maximum Price | Minimum Price |
| May 2024 | 527.04 | 458.30 |
| June 2024 | 546.01 | 474.79 |
| July 2024 | 540.55 | 470.05 |
| August 2024 | 562.18 | 488.85 |
| September 2024 | 584.66 | 508.40 |
| October 2024 | 573.20 | 498.43 |
| November 2024 | 590.39 | 513.39 |
| December 2024 | 605.15 | 526.22 |
GHCL’s share price targets for the remainder of 2024 indicate a potential upward trend. The projected prices range from a minimum of ₹458.30 in May to a maximum of ₹605.15 by December, reflecting optimistic growth prospects. As of May 10th, 2024, the current share price is ₹488, with a high/low range of ₹660 to ₹435.
The stock’s price-to-earnings (P/E) ratio stands at 7.56, suggesting potential undervaluation compared to industry peers. GHCL’s market capitalization is ₹4,673 crore, with a book value per share of ₹311.
| When | Maximum Price | Minimum Price |
| January 2025 | 617.26 | 474.81 |
| February 2025 | 633.08 | 486.99 |
| March 2025 | 657.77 | 505.98 |
| April 2025 | 644.88 | 496.06 |
| May 2025 | 626.09 | 481.61 |
| June 2025 | 654.27 | 503.28 |
| July 2025 | 641.44 | 493.42 |
| August 2025 | 661.28 | 508.68 |
| September 2025 | 684.42 | 526.48 |
| October 2025 | 702.22 | 540.17 |
| November 2025 | 719.77 | 553.67 |
| December 2025 | 737.77 | 567.51 |
GHCL’s projected share price targets for 2025 show a consistent upward trajectory, ranging from a minimum of ₹474.81 in January to a maximum of ₹737.77 by December. This forecast suggests significant potential growth over the year. The company’s diverse clientele includes prominent names such as Hindustan Unilever, HNG, Borosil Renewable, Fena, P&G, Saint Gobain, Patanjali, Hindustan Zinc, and Piramal in the Soda Ash segment.
In the Yarn division, GHCL serves clients like Raymond, Arvind Ltd, Shashi Exports, Vardhaman, Welspun, and others, showcasing a robust customer base across textile and consumer goods industries. Investors may consider GHCL’s expanding market reach and anticipated share price performance when evaluating investment opportunities.
| When | Maximum Price | Minimum Price |
| January 2026 | 759.90 | 584.54 |
| February 2026 | 779.39 | 599.53 |
| March 2026 | 809.78 | 622.91 |
| April 2026 | 793.90 | 610.69 |
| May 2026 | 770.78 | 592.91 |
| June 2026 | 805.47 | 619.59 |
| July 2026 | 789.67 | 607.44 |
| August 2026 | 814.09 | 626.23 |
| September 2026 | 842.59 | 648.14 |
| October 2026 | 864.50 | 665.00 |
| November 2026 | 886.11 | 681.62 |
| December 2026 | 908.26 | 698.66 |
GHCL’s projected share price targets for 2026 indicate a continued upward trend, with prices ranging from a minimum of ₹584.54 in January to a maximum of ₹908.26 by December. These forecasts suggest strong potential growth throughout the year. In terms of revenue breakdown for FY22, GHCL’s Soda Ash segment contributed approximately 98% of total revenue, while Consumer Products accounted for about 2%. Geographically, domestic operations constituted around 96% of revenue, with exports contributing the remaining 4%.
Notably, GHCL executed a strategic divestment of its Vapi business in the Home Textile segment on April 2, 2022, receiving a total consideration of ₹629.85 crores, reflecting the company’s focus on optimizing its portfolio and enhancing shareholder value.
| When | Maximum Price | Minimum Price |
| January 2027 | 926.43 | 712.63 |
| February 2027 | 950.18 | 730.91 |
| March 2027 | 987.24 | 759.41 |
| April 2027 | 967.88 | 744.52 |
| May 2027 | 939.69 | 722.84 |
| June 2027 | 981.97 | 755.37 |
| July 2027 | 962.72 | 740.55 |
| August 2027 | 992.50 | 763.46 |
| September 2027 | 1,027.23 | 790.18 |
| October 2027 | 1,053.94 | 810.72 |
| November 2027 | 1,080.29 | 830.99 |
| December 2027 | 1,107.30 | 851.77 |
GHCL’s projected share price targets for 2027 indicate a robust upward trajectory, with prices ranging from a minimum of ₹712.63 in January to a maximum of ₹1,107.30 by December. These forecasts underscore substantial growth potential over the course of the year. Noteworthy corporate actions include the demerger of GHCL’s yarn division into GHCL Textile Ltd in April 2023.
GHCL Textile Ltd subsequently got listed on the BSE and NSE in June 2023, with GHCL Limited shareholders receiving shares of GHCL Textiles Limited at a ratio of 1:1. This strategic move reflects GHCL’s focus on optimizing operations and enhancing shareholder value through targeted business structuring.
| When | Maximum Price | Minimum Price |
| January 2028 | 1,129.44 | 868.80 |
| February 2028 | 1,158.40 | 891.08 |
| March 2028 | 1,203.58 | 925.83 |
| April 2028 | 1,179.98 | 907.68 |
| May 2028 | 1,145.61 | 881.24 |
| June 2028 | 1,197.16 | 920.90 |
| July 2028 | 1,173.69 | 902.84 |
| August 2028 | 1,209.99 | 930.76 |
| September 2028 | 1,252.34 | 963.34 |
| October 2028 | 1,284.90 | 988.39 |
| November 2028 | 1,317.02 | 1,013.09 |
| December 2028 | 1,349.95 | 1,038.42 |
- January 2028: ₹868.80 (Minimum)
- December 2028: ₹1,349.95 (Maximum)
| When | Maximum Price | Minimum Price |
| January 2029 | 1,376.95 | 1,059.19 |
| February 2029 | 1,412.25 | 1,086.35 |
| March 2029 | 1,467.33 | 1,128.72 |
| April 2029 | 1,438.56 | 1,106.59 |
| May 2029 | 1,396.66 | 1,074.35 |
| June 2029 | 1,459.51 | 1,122.70 |
| July 2029 | 1,430.89 | 1,100.69 |
| August 2029 | 1,475.15 | 1,134.73 |
| September 2029 | 1,526.78 | 1,174.44 |
| October 2029 | 1,566.47 | 1,204.98 |
| November 2029 | 1,605.64 | 1,235.10 |
| December 2029 | 1,645.78 | 1,265.98 |
- January 2029: ₹1,059.19(Minimum)
- December 2029: ₹1,645.78 (Maximum)
| When | Maximum Price | Minimum Price |
| January 2030 | 1,678.69 | 1,291.30 |
| February 2030 | 1,721.74 | 1,324.41 |
| March 2030 | 1,788.88 | 1,376.06 |
| April 2030 | 1,753.81 | 1,349.08 |
| May 2030 | 1,702.73 | 1,309.79 |
| June 2030 | 1,779.35 | 1,368.73 |
| July 2030 | 1,744.46 | 1,341.89 |
| August 2030 | 1,798.41 | 1,383.39 |
| September 2030 | 1,861.36 | 1,431.81 |
| October 2030 | 1,909.75 | 1,469.04 |
| November 2030 | 1,957.49 | 1,505.76 |
| December 2030 | 2,006.43 | 1,543.41 |
- January 2030: ₹1,291.30 (Minimum)
- December 2030: ₹2,006.43 (Maximum)
Financial Condition of GHCL: Last 5 Years
| Financials | 2019 | 2020 | 2021 | 2022 | 2023 |
|---|---|---|---|---|---|
| Sales (Rs. Crores) | 3,341 | 3,305 | 2,491 | 3,052 | 4,545 |
| Expenses (Rs. Crores) | 2,582 | 2,576 | 1,886 | 2,322 | 3,048 |
| Operating Profit (Rs. Crores) | 759 | 729 | 605 | 730 | 1,497 |
| Other Income (Rs. Crores) | 16 | 16 | 18 | 211 | 124 |
| Interest (Rs. Crores) | 127 | 120 | 74 | 51 | 39 |
| Depreciation (Rs. Crores) | 117 | 131 | 111 | 87 | 94 |
| Profit Before Tax (Rs. Crores) | 531 | 495 | 437 | 802 | 1,489 |
| Net Profit (Rs. Crores) | 351 | 397 | 326 | 650 | 1,142 |
| EPS (Rs.) | 35.77 | 41.75 | 34.33 | 68.14 | 119.41 |
| Dividend Payout (%) | 14 | 7 | 16 | 22 | 15 |
- GHCL’s financial performance over the past five years has shown fluctuations.
- Sales experienced a notable decline in 2021 but rebounded strongly in 2023, surpassing previous levels.
- Operating expenses decreased in 2021 but rose sharply in 2023, indicating varying cost management strategies.
- Operating profits remained relatively stable, with a significant increase in 2023 driven by improved sales and cost efficiencies.
- Other income surged in 2022 due to non-operational sources like investments or one-time gains.
- Profit before tax and net profit reached their highest levels in 2023, reflecting the company’s resilience and growth trajectory.
- Earnings per share (EPS) also saw a significant increase in 2023, indicating improved profitability on a per-share basis.
- Dividend payouts varied over the years, with a notable increase in 2022.
FAQs
What is GHCL’s current market capitalization?
GHCL’s current market capitalization stands at ₹4,673 crore, reflecting its solid market presence and valuation.
As of May 10th, 2024, GHCL’s share price is ₹488, offering investors an entry point into a promising growth story.
GHCL’s share price target for 2025 ranges from a minimum of ₹474.81 to a maximum of ₹737.77, highlighting potential upward movement over the next year.
GHCL’s share price target for 2030 ranges from a minimum of ₹1,291.30 to a maximum of ₹2,006.43, showcasing strong growth potential over the long term.
What is GHCL’s current price-to-earnings (P/E) ratio?
GHCL’s current price-to-earnings (P/E) ratio stands at 7.56, indicating a potential undervaluation compared to industry peers, making it an attractive investment opportunity.
What is GHCL’s dividend payout ratio?
GHCL’s dividend payout ratio varies, with a notable increase in 2022 to 15%, rewarding shareholders while maintaining financial stability.
GHCL’s book value per share is ₹311, highlighting the underlying value of the company’s assets and operations.
What was GHCL’s compounded profit growth rate over the last 3 years?
GHCL’s compounded profit growth rate over the last 3 years was an impressive 23%, showcasing the company’s ability to deliver consistent earnings growth.
What was GHCL’s return on equity (ROE) for the last year?
GHCL’s return on equity (ROE) for the last year stood at a commendable 18%, reflecting efficient utilization of shareholder funds and management effectiveness.
What was GHCL’s operating profit in 2023?
GHCL achieved an operating profit of ₹1,497 crores in 2023, reflecting strong operational performance and effective cost management.
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Conclusion: GHCL’s Strategic Growth and Financial Resilience
In summary, GHCL, established in 1983, has emerged as a key player in the chemical, yarn, and commodity sectors. The company’s diversified portfolio across Chemicals, Yarn, Consumer Products, and Trading reflects its resilience and innovative approach in dynamic markets.
GHCL’s Chemical Division specializes in producing Soda Ash and Sodium Bicarbonate for various industries, while its Yarn Division caters to apparel and home textile segments. The Consumer Products segment markets iodized salts under reputable brands.
With robust manufacturing capabilities and recent investment initiatives, including expanding Soda Ash and salt production, GHCL demonstrates a strategic focus on growth and expansion.
Financially, GHCL has reduced debt significantly, providing stability and enabling a healthy dividend yield of 3.58% with a dividend payout of 17.0%. Despite challenges like modest sales growth and lower promoter holding, GHCL has improved operational efficiency with reduced working capital requirements.
In conclusion, GHCL presents an attractive investment opportunity, supported by strong fundamentals, strategic expansions, and a commitment to shareholder value, positioning itself for sustainable growth in the chemical and textile sectors.
What did we learn?
- 1 About GHCL
- 2 GHCL Q3 Financial Performance Highlights and Investment Initiatives
- 3 How to Purchase GHCL Shares in India?
- 4 GHCL Share Price Prediction 2024 – 2030
- 5 Financial Condition of GHCL: Last 5 Years
- 6 FAQs
- 6.1 What is GHCL’s current market capitalization?
- 6.2 What is GHCL’s current share price?
- 6.3 What is the share price target for GHCL in 2025?
- 6.4 What is GHCL’s share price target for 2030?
- 6.5 What is GHCL’s current price-to-earnings (P/E) ratio?
- 6.6 What is GHCL’s dividend payout ratio?
- 6.7 What is GHCL’s book value per share?
- 6.8 What was GHCL’s compounded profit growth rate over the last 3 years?
- 6.9 What was GHCL’s return on equity (ROE) for the last year?
- 6.10 What was GHCL’s operating profit in 2023?
- 7 Conclusion: GHCL’s Strategic Growth and Financial Resilience
