Gujarat Narmada Valley Fertilizers & Chemicals Ltd

About

Gujarat Narmada Valley Fertilizers & Chemicals Limited (GNFC), is a joint sector enterprise promoted by the Gujarat State Investments Limited (GSIL), a Government of Gujarat undertaking, and the Gujarat State Fertilizers & Chemicals Ltd.(GSFC). The company was set up in Bharuch in 1976 while its manufacturing and marketing operations were started in 1982. The company operates businesses mainly in the Industrial Chemicals, Fertilizers apart from the small presence of IT services. In the chemical segment, it has a product portfolio of various bulk chemicals that are used in industries for manufacturing various specialty chemicals as well as end products.

Key Points

Business Overview:[1]
GNFC is into the manufacturing and marketing of fertilizers, pesticides, industrial chemicals and also has an IT products division. The products and services offered by the company are-

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  • Market Cap 6,569 Cr.
  • Current Price 423
  • High / Low 518 / 202
  • Stock P/E 6.13
  • Book Value 419
  • Dividend Yield 1.89 %
  • ROCE 16.0 %
  • ROE 12.3 %
  • Face Value 10.0

Pros

  • Company has reduced debt.
  • Company is almost debt free.
  • Stock is trading at 1.01 times its book value
  • Company is expected to give good quarter
  • Debtor days have improved from 70.99 to 36.26 days.

Cons

  • The company has delivered a poor sales growth of 2.41% over past five years.
  • Company has a low return on equity of 12.48% for last 3 years.

Peer comparison

Sector: Fertilizers Industry: Fertilizers

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Quarterly Results

Standalone Figures in Rs. Crores / View Consolidated

Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021
1,219 1,431 1,210 1,332 1,278 1,342 700 1,187 1,508 1,733 1,394 2,096
1,139 1,326 1,114 1,216 1,111 1,180 724 993 1,145 1,263 1,001 1,665
Operating Profit 80 105 96 116 167 163 -24 194 363 470 393 431
OPM % 7% 7% 8% 9% 13% 12% -3% 16% 24% 27% 28% 21%
Other Income 75 72 36 39 35 42 104 39 45 49 43 58
Interest 0 1 1 1 1 2 12 6 1 1 1 1
Depreciation 66 65 64 67 67 66 66 68 70 68 70 71
Profit before tax 88 111 67 88 134 137 2 159 337 450 366 417
Tax % -88% 16% 0% 7% 17% -75% 23% 13% 29% 31% 34% 32%
Net Profit 166 94 66 82 112 239 2 139 240 309 240 282
EPS in Rs 10.66 6.02 4.27 5.27 7.19 15.36 0.10 8.92 15.45 19.88 15.43 18.16

Profit & Loss

Standalone Figures in Rs. Crores / View Consolidated

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 TTM
2,614 2,841 3,862 4,253 4,847 4,642 4,552 4,589 5,837 5,896 5,162 5,129 6,732
2,330 2,462 3,311 3,659 4,231 4,662 3,989 3,936 4,445 5,022 4,621 4,125 5,074
Operating Profit 284 379 551 593 616 -21 563 653 1,392 874 542 1,003 1,657
OPM % 11% 13% 14% 14% 13% -0% 12% 14% 24% 15% 10% 20% 25%
Other Income 78 144 30 40 45 52 252 517 140 215 153 237 195
Interest 25 20 34 63 92 274 297 203 100 6 5 20 4
Depreciation 117 121 131 149 145 209 251 251 270 263 264 272 279
Profit before tax 220 381 417 422 424 -452 268 715 1,162 819 425 948 1,569
Tax % 44% 30% 32% 35% 31% 0% 35% 27% 32% 10% -17% 27%
Net Profit 124 267 284 273 292 -452 173 521 790 741 499 689 1,071
EPS in Rs 7.97 17.15 18.26 17.57 18.81 -29.09 11.11 33.54 50.80 47.69 32.10 44.35 68.92
Dividend Payout % 41% 19% 19% 20% 19% 0% 18% 15% 15% 15% 16% 18%
Compounded Sales Growth
10 Years: 6%
5 Years: 2%
3 Years: -4%
TTM: 49%
Compounded Profit Growth
10 Years: 10%
5 Years: 32%
3 Years: -4%
TTM: 118%
Stock Price CAGR
10 Years: 18%
5 Years: 15%
3 Years: 8%
1 Year: 87%
Return on Equity
10 Years: 10%
5 Years: 13%
3 Years: 12%
Last Year: 12%

Balance Sheet

Standalone Figures in Rs. Crores / View Consolidated

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Sep 2021
155 155 155 155 155 155 155 155 155 155 155 155 155
Reserves 1,924 2,131 2,352 2,562 2,790 2,325 3,122 3,646 4,303 4,842 5,067 5,828 6,353
Borrowings 555 1,140 1,990 3,196 3,904 3,844 3,101 1,959 303 208 860 4 11
654 835 1,192 1,109 2,420 2,164 2,130 2,142 2,411 2,337 2,261 2,321 2,582
Total Liabilities 3,288 4,262 5,689 7,022 9,270 8,488 8,509 7,903 7,172 7,542 8,344 8,309 9,101
1,169 1,213 1,605 1,807 4,873 4,468 4,367 4,442 4,161 3,959 3,810 3,720 3,619
CWIP 1,030 1,385 1,867 2,752 23 13 9 14 14 25 82 161 183
Investments 90 87 98 130 132 145 729 762 726 732 596 853 1,080
999 1,577 2,119 2,332 4,241 3,861 3,404 2,683 2,271 2,826 3,856 3,575 4,219
Total Assets 3,288 4,262 5,689 7,022 9,270 8,488 8,509 7,903 7,172 7,542 8,344 8,309 9,101

Cash Flows

Standalone Figures in Rs. Crores / View Consolidated

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
862 79 253 -160 11 490 996 1,445 1,819 701 286 1,884
-709 -719 -735 -808 -394 -284 36 -53 49 -310 -901 -856
115 460 639 889 334 -363 -1,037 -1,073 -1,400 -185 546 -934
Net Cash Flow 268 -180 156 -79 -48 -156 -5 320 468 206 -69 95

Ratios

Standalone Figures in Rs. Crores / View Consolidated

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Debtor Days 2 56 74 101 110 107 119 88 70 77 100 36
Inventory Days 105 111 99 93 99 98 107 110 98 106 125 129
Days Payable 59 66 77 32 35 39 40 57 61 50 68 72
Cash Conversion Cycle 48 101 95 162 173 166 186 142 107 132 156 93
Working Capital Days 35 69 62 104 161 191 174 140 76 89 178 68
ROCE % 10% 13% 11% 9% 8% -3% 9% 10% 24% 17% 8% 16%

Shareholding Pattern

Numbers in percentages

Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021
41.20 41.18 41.18 41.18 41.18 41.18 41.18 41.18 41.18 41.18 41.18 41.18
12.67 14.04 14.16 13.74 12.88 12.36 9.94 8.71 8.55 10.04 11.68 13.75
13.60 13.59 13.82 14.04 14.26 14.73 14.91 13.87 13.60 11.23 10.31 7.31
32.53 31.19 30.83 31.04 31.67 31.73 33.96 36.23 36.67 37.54 36.83 37.76

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