TP: ₹125

CMP ₹ 67.90
Face Value ₹ 2
Market Cap ₹ 2705 crores
Rationale for Recommendation Promoters holding 37.84%
• Debt free as quoted investments of ₹1,610 crores are higher than Funds, BCs, HNIs 27.95%
borrowing of ₹1505 crores. Others 34.21%
Book Value ₹ 172.22
• “For the first time, we have filed an application for sunset review for
Price/Book 0.4
caprolactam and the notice has been issued by Directorate General
Dividend (%) 60
of Trade Remedies (DGTR).” – Arvind Agarwal, CMD
• GSFC produces 56% of caprolactam for industrial requirement in India whereas the remaining 44% is
imported. Similarly, GSFC produces 29% melamine of the total requirement in India while the remaining
71% is imported. In the FY2019-20, GSFC has produced 83,093 meter tons of caprolactam and 29,215
metric tons of melamine. It expects to increase the production up to 90,000 metric tons and 40,000 metric
tons for caprolactam and melamine, respectively.
• Big improvement in Caprolactum & Melamine margin. As a result, Q2 onwards PAT is estimated to be ₹ 100-
110 crore each quarter.
• Diversified product of Polyester raw materials, fertilizer, specialty chemicals/industrial products.
• Stock is trading at 7.4x of FY21E-EPS & 5.9x of FY22E-EPS and 0.4x of Book Value.
• Technical. The stock made a decadal low at ₹29.80 on March 23, 2020 & from thereon it has made a slow
ascent to ₹67.90. The stock faces its first resistance at ₹68 & then at ₹80 in the short term. The medium
term outlook for the stock will turn for the better on a close above ₹100.

Products Agro Services Future Projects

o Fertilizers
o Industrial Products-Major
o Industrial Products-Other
o Water Soluble Fertilizers
o Sulphur Based Products
o Plant Tissue Culture
o Micro Nutrients
o Plant Growth Promoters
o Soil Conditioners
o Organic Products
o Seeds
o Trading
Fertilizers o Agrinet o Phosphoric Acid
▪ Neem Urea - 367K tpa o Micro Irrigation - 1.65 lakh MTPA
▪ Ammonium Sulphate - 196K tpa o Farm Youth Training
Program o Sulphuric Acid
▪ DAP - 434K tpa
o Crop Demonstrations - 6 lakh MTPA
▪ APS – 256K tpa
o Krishi Jivan
Industrial o Horticulture
▪ Caprolactam - 90K tpa e Department
▪ Malamine - 40K tpa e o Soil Testing Laboratory
▪ Nylon-6 – 7K tpa
▪ Methyl Ethyl Ketoxime – 4.45K tpa
▪ Methanol - 525 MTPD
▪ Argon Gas - 3.2 mln NM3 pa
▪ Sulphuric Acid - 1750 MTPD
▪ Oleum - 28K tpa
▪ Nitric Acid – 8.3K tpa

Financials (₹ crores)
Particulars 2022E 2021E Q1-2021 2020
Revenue 9,785 7,828 1,648 7,904
EBIDTA 1,027 822 101 424
Profit Before Tax 627 501 38 138
Net Profit 445 356 30 107
EPS ₹ 11.44 9.15 0.76 2.75
Dividend (%) 110 110 - 60

▪ Target Price of ₹85 by November end and ₹125 in 6-9 months