ValuePickr Forum

Gulshan Polyols(GPL) - Business by FMCG and Valuation by Commodity

Company interest part rose significantly in March qtr and yoy even though its debt is reduced…how to look at it? What could be the reason?

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Heartening to see promoter and promoter groups acquiring stocks over the last 6 months… and the 2019 results are also encouraging…

However I am digging deeper on 2 fronts and wondering if some of the experts here can shed light on

  1. Gulshan Polyol trust purchased 1cr worth of stock for ESOPs since formulation (2018) but not granted any options yet

  2. Promoter Salary is on the higher side vis-a-vis PAT and does not scale appropriately during difficult years. The remuneration structure also seems off given the delta between MD & CEO salary. This is purely a layman observation from my side and haven’t compared the remuneration structure in similar businesses which are founder led at this scale.

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Very strong results. Outlook for the full year looks very good with high demand for sorbitol and fructose and low RM prices (maize). Distillery which was a drag from past few years will also start contributing positively due to liquor license recently recieved.

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Sorbitol and HFRS capacity expansion likely to be operational by March 2021. Besides, native starch should attain higher capacity utilisation in view of school/colleges being opened and main buyers are paper sector.

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They have just mentioned in their latest presentation that they are evaluating expansion in HFRS and sorbitol. Where have they said anything about completion by March 2021?

For Distillery business for similar revenue profit is tripled. What is driving this ?

They got a license to supply country liquor and margins are much higher in liquor compared to ethanol.

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Hi can some one give me details on Sorbitol and distillery capex plans ? Sorbitol is 2x and Distillery is 5x ?
How much revenue can Sorbitol capex and Distillery capex add ?

Interview on cnbc; guidance of 1000cr top line in this year

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