One of the smallcap stocks engaged in the manufacture of precipitated calcium carbonate, sorbitol, ethanol, and biofuels. The stock has jumped 5.65 percent after investing Rs. 200 crore for 250 KLPD bio-ethanol plant in Goalpara, Assam
Stock Price Movement:
In Thursday’s trading session, Gulshan Polyols Limited’s share jumped to an intraday high of 5.65 percent from the previous close of Rs. 175.20. The stock opened at Rs. 175.35 and is currently trading at Rs. 183.60, with a high of Rs. 185.10 and a low of Rs. 175.35. The market capitalization now stands at approximately Rs. 1,145.12 crore.
What Happened:
Gulshan Polyols Limited has been granted a production-linked incentive (PLI) of Rs. 2 per liter for its 250 KLPD bio-ethanol plant in Goalpara, Assam. This incentive, valid for three years, is part of the company’s Rs. 200 crore investment in the plant, which will create over 200 permanent jobs.
The Production-Linked Incentive (PLI), in addition to the benefits under the Assam Ethanol Production Promotion Policy, is expected to generate an estimated Rs. 50 crore over three years, enhancing operational efficiency and production growth while contributing positively to the company’s overall performance.
Client and Orderbook:
Gulshan Polyols Limited serves prominent clients such as Colgate-Palmolive, Hindustan Unilever, Dabur, Asian Paints, and ITC. As of Q1 FY24, the company holds a strong order book valued at approximately Rs. 570 crore, indicating robust business prospects.
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Products Offering:
Gulshan Polyols Limited manufactures a diverse range of products, including starch, sugar, sorbitol, ethanol, and calcium carbide. The company serves various industries such as pharmaceuticals, personal care, footwear, tyres, rubber, plastics, paints, agrochemicals, and food and agricultural products.
Recent quarter results and ratios:
Gulshan Polyols Limited’s revenue has increased from Rs. 307.83 crore in Q2 FY24 to Rs. 440.47 crore in Q2 FY25, which has grown by 43.09 percent. The net profit of Gulshan Polyols Limited has down by 42.41 percent, from Rs. 2.24 crore in Q2 FY24 to Rs. 1.29 crore in Q2 FY25.
Gulshan Polyols Limited’s revenue and net profit have grown at a CAGR of 22.05 percent and -3.78 percent, respectively, over the last four years.
In terms of return ratios, the company’s ROCE and ROE should be 3.23 percent and 2.01 percent, respectively. The debt-to-equity ratio of the company is to be 0.72x. Gulshan Polyols Limited’s EPS is to be Rs. 3.53.
Company Overview:
Gulshan Polyols Limited is a leading manufacturer of precipitated calcium carbonate, sorbitol, ethanol, biofuels, and other mineral-based products. The company is headquartered in Muzaffarnagar, Uttar Pradesh, and is a market leader in the production of precipitated calcium carbonate and sorbitol in India.
Written By – Nikhil Naik
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