GU­JARAT ALKALIES & CHEM­I­CALS

{Ticker : 530001 { FV: ₹10 { 52-Week H/L: ₹932.35/433.75

Flash News Investment - - RECOMMENDATIONS -

We had rec­om­mended Gu­jarat Alkalies in Vol­ume no 34, Is­sue No 50 (dated Oct 01, 2018), when the scrip was trad­ing at Rs 613. Our rec­om­men­da­tion was backed by fac­tors such as its JV with NALCO and ex­ten­sive ca­pac­ity ex­pan­sion plans. In Q2FY19, rev­enue came in at Rs 771.7 crore, up by 29.6 per­cent YoY. EBITDA for the quar­ter soared by 72.8 per­cent YoY to Rs 278.2 crore due to high op­er­at­ing lever­age and the EBITDA mar­gin jumped by 901 bps to 36% from 27%. PAT for the quar­ter surged by 63.9 per­cent YoY and PAT mar­gin stood at 23 per­cent. Dur­ing Q2FY19, it com­mis­sioned 14,000 MTPA hy­dro­gen per­ox­ide plant and 32,000 MTPA poly alu­minium chlo­ride plant in Gu­jarat. Con­sid­er­ing such ro­bust growth, we urge in­vestors to HOLD the scrip.

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