Gujarat Ambuja Exports

Stock Opportunities
173

There are two major red flags post AGM:

  1. They have drastically reduced EBITA margin range from 12-20% to 8-15% range ! The reason given for this downward shift is “volatility in maize prices”. Now, that reasoning doesn’t reflects good as the very purpose of giving margin range is to accomodate the best and worst of scenarios !. Also with kind of these 8-12% margins, even with new capacities coming on stream, share price doesn’t have any much headroom for upside.
    2). The way he ducked the maiz citchem question doesn’t augur well with the governance standards. Also, one participant rightly addressed this question to other members of board (minus chairman as he is the interested party), but seems other board members are just puppets. No one even bothered to attempt to answer the question.
4 Likes
174

Absolutely. The promoter refuses to answer difficult questions especially on WOS Maiz citchem, where they taken minority shareholders for a ride.

What is the point in having plants across the country if they are not margin accretive.

Too many flip flops from HFCs, Ethanol to now Fermentation.

One thing is for sure… Governance standards are very poor.

2 Likes
175

Gujarat Ambuja Exports Limited announced plans to set up a 180 KLPD Greenfield Grain-Based Extra Neutral Alcohol (ENA) and Ethanol Plant in Malda, West Bengal.

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  • Focus: The plant, adjacent to the existing maize processing unit, will manufacture alcohol for the food and pharma industries.
  • Investment: Estimated at approximately ₹180 crore, subject to Board revisions.
  • Objective: Diversify revenue streams, expand market presence, and grow the client base for long-term growth.
176

Hey Arka, what do you feel about the stock price now? Hovering around the 120 marks and no meaningful improvement in business still despite the capex coming on board