ThinkStock PhotosEmkay Research has a buy call on GHCL, with a target price of Rs 274, for a duration of 12 months. The current market price of GHCL is Rs 234.2.
GHCL Ltd, incorporated in the year 1983, is a Small Cap company with a market cap of Rs 2224.26 Crore, operating in Chemicals sector.
GHCL's key Products/Revenue Segments include Chemicals (Inorganic) and Textiles for the year ending 31-Mar-2020.
Investment Rationale
According to Emkay Research, improving capital deployment strategies augment growth trajectory for the business. Emkay introduces FY24 estimates and forecast revenue/EBITDA CAGR of 11 per cent/14 per cent over FY21-FY24E. Emkay arrives at a revised target price of Rs 274 (Rs232 earlier) by rolling forward to 3.3x June’23E EV/EBITDA. Meanwhile, Key downside risks to watch out for is, delayed recovery in soda ash prices and substantial margin erosion in home textile business, on input costs.
Financials
For the quarter ended 31-03-2021, the company has reported a Consolidated Total Income of Rs 833.79 Crore, up 1.59 per cent from last quarter's Total Income of Rs 820.77 Crore and up 11.04 per cent from last year same quarter's Total Income of Rs 750.91 Crore. Company has reported net profit after tax of Rs 111.14 Crore in latest quarter.
GHCL Ltd, incorporated in the year 1983, is a Small Cap company with a market cap of Rs 2224.26 Crore, operating in Chemicals sector.
GHCL's key Products/Revenue Segments include Chemicals (Inorganic) and Textiles for the year ending 31-Mar-2020.
Investment Rationale
According to Emkay Research, improving capital deployment strategies augment growth trajectory for the business. Emkay introduces FY24 estimates and forecast revenue/EBITDA CAGR of 11 per cent/14 per cent over FY21-FY24E. Emkay arrives at a revised target price of Rs 274 (Rs232 earlier) by rolling forward to 3.3x June’23E EV/EBITDA. Meanwhile, Key downside risks to watch out for is, delayed recovery in soda ash prices and substantial margin erosion in home textile business, on input costs.
Financials
For the quarter ended 31-03-2021, the company has reported a Consolidated Total Income of Rs 833.79 Crore, up 1.59 per cent from last quarter's Total Income of Rs 820.77 Crore and up 11.04 per cent from last year same quarter's Total Income of Rs 750.91 Crore. Company has reported net profit after tax of Rs 111.14 Crore in latest quarter.
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