We had recommended GNFC in volume no. 33, issue no. 26 (dated April 17, 2017) when the scrip was trading at Rs 286. Our recommendation was backed by factors such as its good financial performance in H1FY17. The company’s turnover stood at Rs 1,054 crore for Q1FY18, as against Rs 963 crore in Q1FY17, while the net profit stood at Rs 205 crore, as against Rs 169 crore in Q1FY17. Going forward, the company is expected to gain further in FY18, if the Centre imposes anti-dumping duty on toluene di-isocyanate (TDI) which would restrict imports from China, Korea and Japan, making GNFC the largest TDI player. It also aims to become debt-free by the end of FY18. We expect the company to show strong performance in FY18 and hence recommend our investors to HOLD the scrip.