Risk factor
Limited trading liquidity
Profitability factor
Weak margins and returns
About
Established in 1973 and headquartered in Vadodara, India, Gujarat Alkalies and Chemicals Limited is engaged in the domestic production and sale of an extensive range of chemical products. Its comprehensive portfolio includes essential items such as caustic soda (available as lye, flake, and prill), liquid chlorine, hydrochloric acid, and compressed hydrogen gas. The company also manufactures anhydrous aluminum chloride, various chlorinated paraffins, benzyl alcohol, benzaldehyde, benzyl chloride, and chloromethane. Further offerings encompass caustic potash lye and flakes, potassium carbonate, methylene chloride, chloroform, carbon tetrachloride, phosphoric acid, and chlorinated paraffin wax. Additionally, they provide hydrogen peroxide and specialized products like bleachwin, scalewin, poly aluminum chloride, biowin, and stable bleaching powder. These diverse chemical compounds are vital to numerous industrial applications, serving sectors such as textiles, pulp and paper, soap and detergent, alumina refining, water treatment, petroleum, plastics, fertilizers, pharmaceuticals, agrochemicals, plant protection, dyes and intermediates, refrigeration gas, and epoxy. Beyond its operations in India, the firm exports its goods to international markets including the United States, Europe, Australia, Africa, the Middle East, China, Russia, Turkey, and South Asia.
Company Valuation
Based on key historical and expected multiples, the stock is slightly undervalued relative to its peers. In particular, the stock is reasonably priced on P/E, 'cheap' on