Gujarat Narmada Valley Fertilizers & Chemicals Ltd

About

GNFC started fertilizer manufacturing and marketing operations by setting up in 1982, one of the worlds largest single-stream ammonia-urea fertilizer complexes.

GNFC today is one of the leaders in fertilizer industry. The company is engaged in manufacturing and selling fertilizers such as Urea, Ammonium Nitrophosphate under the umbrella NARMADA. GNFC has to its credit one of the largest Ammonia plant, a reference plant in the world of fuel oil based technology along with the world's largest single stream Urea plant.

Key Points

Sole Manufacturer of TDI in India with market share of 70% rest 30% is imported

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  • Market Cap 6,611 Cr.
  • Current Price 425
  • High / Low 518 / 202
  • Stock P/E 6.12
  • Book Value 424
  • Dividend Yield 1.88 %
  • ROCE 15.8 %
  • ROE 12.3 %
  • Face Value 10.0

Pros

  • Company has reduced debt.
  • Company is almost debt free.
  • Stock is trading at 1.00 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 12.47% for last 3 years.

Peer comparison

Sector: Fertilizers Industry: Fertilizers

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Quarterly Results

Consolidated Figures in Rs. Crores / View Standalone

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% 16% -75% 23% 13% 29% 31% 34% 32%
Net Profit 168 95 69 85 113 240 3 141 243 311 242 285
EPS in Rs 10.82 6.13 4.47 5.47 7.30 15.44 0.19 9.06 15.61 19.98 15.56 18.32

Profit & Loss

Consolidated Figures in Rs. Crores / View Standalone

Mar 2006 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 TTM
2,449 4,642 4,552 4,589 5,837 5,896 5,162 5,129 6,732
1,873 4,662 3,989 4,228 4,445 5,022 4,621 4,125 5,074
Operating Profit 575 -21 563 361 1,392 874 542 1,003 1,657
OPM % 23% -0% 12% 8% 24% 15% 10% 20% 25%
Other Income 75 52 252 809 140 215 153 237 195
Interest 43 274 297 203 100 6 5 20 4
Depreciation 111 209 251 251 270 263 264 272 279
Profit before tax 496 -452 268 715 1,162 819 425 948 1,569
Tax % 34% 0% 35% 27% 32% 10% -17% 27%
Net Profit 311 -443 180 529 795 750 508 697 1,080
EPS in Rs 21.23 -28.50 11.57 34.02 51.15 48.24 32.69 44.84 69.47
Dividend Payout % 20% 0% 17% 15% 15% 15% 15% 18%
Compounded Sales Growth
10 Years: %
5 Years: 2%
3 Years: -4%
TTM: 49%
Compounded Profit Growth
10 Years: %
5 Years: 31%
3 Years: -4%
TTM: 117%
Stock Price CAGR
10 Years: 18%
5 Years: 15%
3 Years: 8%
1 Year: 102%
Return on Equity
10 Years: %
5 Years: 13%
3 Years: 12%
Last Year: 12%

Balance Sheet

Consolidated Figures in Rs. Crores / View Standalone

Mar 2006 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Sep 2021
146 155 155 155 155 155 155 155 155
Reserves 1,073 2,364 3,168 3,700 4,362 4,909 5,144 5,913 6,441
Borrowings 334 3,844 3,101 1,959 303 208 860 4 11
1,225 2,164 2,130 2,142 2,411 2,337 2,261 2,321 2,582
Total Liabilities 2,778 8,527 8,555 7,956 7,231 7,609 8,421 8,394 9,190
1,116 4,468 4,367 4,442 4,161 3,959 3,810 3,720 3,619
CWIP 49 13 9 14 14 25 82 161 183
Investments 149 184 775 816 785 799 673 938 1,168
1,464 3,861 3,404 2,683 2,271 2,826 3,856 3,575 4,219
Total Assets 2,778 8,527 8,555 7,956 7,231 7,609 8,421 8,394 9,190

Cash Flows

Consolidated Figures in Rs. Crores / View Standalone

Mar 2006 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
358 490 996 1,445 1,819 701 286 1,884
-82 -284 36 -53 49 -310 -901 -856
-295 -363 -1,037 -1,073 -1,400 -185 546 -934
Net Cash Flow -19 -156 -5 320 468 206 -69 95

Ratios

Consolidated Figures in Rs. Crores / View Standalone

Mar 2006 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Debtor Days 69 107 119 88 70 77 100 36
Inventory Days 96 98 107 110 98 106 125 129
Days Payable 75 39 40 57 61 50 68 72
Cash Conversion Cycle 89 166 186 142 107 132 156 93
Working Capital Days 75 191 174 140 76 89 178 68
ROCE % 9% 10% 24% 16% 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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