Current market cap of GHCL is 4,740 Cr. The capex of GHCL is 4,000 Cr(Green field capex) + 300Cr (Bromine+Vaccumsalt) in next 3 yrs. Current Soda ash price which are at bottom due to turkey import. As per the management, after capex - they will touch max of 0.5 Debt to Equity ratio which is quiet healthy.
Risks:
- Dependency on Soda ash prices - crash or range bound for next 1 or 2 years
- Turkey soda ash dumping continue due to europe slowdown
- Company capex plans are delayed.
- Delay in raising funds.
- Tata chemicals capex will be commenced before GHCL.
Any other risks which I am missing?
2 Likes