Gsfc - a value pick

GSFC-Gujarat State Fertilizer company located in Gujarat mainly into Fertilizers and industrial chemicals.

MAin products are Fertilizers and Chemicals.

Present market cap is 2665cr.
based on quaterly report Fy16

Liabilities are 2319 crore against which
Total Receivables are 2309 crore which makes it virtually debt free.

total non current investment are 850 crore based on market price and investment cost value.
plus they also have windmill capacity of 154Mw present cost of WIndmill om a 1MW is approx 4-6cr.

so other then its core business value it has assets worth 1500 crore.

Last ten year average Profit is approx 700 crore.

they have recently launch GUjcon CRF AND PRF which mainly benefits to construction and road infrastructure. this is basically secondary reinforcement and gives strength.

this products is maninly availabel from usa and belgium only.( based on company news and press releases).
this product will i my view make it less vulnerable to forex fluctuation as they will export this product too.
Recent estimate is around 200-300cr revenue form above product in next year. can add to bottomlines and reduce dependence on fertilizer products.

i am a new to this research field and looking for views or angle to look for more research on above company.

this is not a buy recommendation nor i am holding any shares.


Right analysis .in my view the problem is it’s government controlled company so might not show as good growth as it promises.
disclosure: Invested at 73

Also look at GNFC. It’s caped is over and is coming out of initial teething trouble.

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