GNFC has now caught the attention of DD Sharma, the veteran stock picker.
DD Sharma explained all the salient facts and figures about the stock in his usual meticulous fashion.
He is so impressed by GNFC’s powerhouse credentials that he described it as a “fantastic” stock.
Gujarat Narmada Valley Fertilizers & Chemicals (GNFC) posted a steady set of earnings in Q1 as chemical business margins improved while fertiliser losses reduced.
In an interview to CNBC-TV18, Rajiv Kumar Gupta, MD of GNFC spoke about the results and his outlook for the company.
All major chemicals have done well, said Gupta.
We are doing very well in toluene di- isocynate (TDI) plant. The TDI revenue improved in Q1, he added.
Have been able to reduce finance cost, said Gupta. Debt has reduced to 0.17 percent from 0.37 percent, he added.
"Our target is to make the company debt free by the end of this financial year and we will sincerely try and work on that," said Gupta.
GNFC's current domestic market share is more than 50 percent, aim to take it to about 75 percent, he added
He called it a “long-term wealth creation idea” and recommended a buy on the following logic:
“GNFC is a company with solid fundamentals. It is a leading manufacturer of TDI where it has a dominant 50% market share and we have of late seen a surge in the prices of TDI because of disruption in China, Japan and Korea. That is tremendously positive for this company. To add to this, this company would be a major beneficiary of good monsoon, farm loan waiver and the government’s focus on rural economy. To add to this all, the recent reduction in GST rates on fertilisers from the earlier fixed 12% to 5% also would be pretty positive. And this company also has been appointed as a nodal agency for digitalisation of residential townships by NITI Aayog which would also be a big positive. All in all, it is good stock and at the current levels, it trades at a reasonable valuation. I am bullish on the stock. One should buy into this stock at the current levels and my targets are Rs 400 in a year.”
Further Reading : Ginni filaments DD Sharmas another new pick
DD Sharma explained all the salient facts and figures about the stock in his usual meticulous fashion.
He is so impressed by GNFC’s powerhouse credentials that he described it as a “fantastic” stock.
DD Sharma’s target price of Rs. 450 means that gains of 55% are on the anvil
At the end, he projected a target price of Rs. 450 for the stock which implies that gains of up to 55% from the CMP of Rs. 283.85 are due from the stock.
GNFC posted a steady set of earnings in Q1 as
chemical business margins improved while fertilizer losses reduced. In
an interview to CNBC-TV18, Rajiv Kumar Gupta, MD of the company spoke
about the results and his outlook for the company.
In an interview to CNBC-TV18, Rajiv Kumar Gupta, MD of GNFC spoke about the results and his outlook for the company.
All major chemicals have done well, said Gupta.
We are doing very well in toluene di- isocynate (TDI) plant. The TDI revenue improved in Q1, he added.
Have been able to reduce finance cost, said Gupta. Debt has reduced to 0.17 percent from 0.37 percent, he added.
"Our target is to make the company debt free by the end of this financial year and we will sincerely try and work on that," said Gupta.
GNFC's current domestic market share is more than 50 percent, aim to take it to about 75 percent, he added
GNFC is a “long-term wealth creation idea” with “solid fundamentals”: Vikas Sethi
Vikas Sethi, the noted stock market expert, is also bullish about the prospects of GNFC.He called it a “long-term wealth creation idea” and recommended a buy on the following logic:
“GNFC is a company with solid fundamentals. It is a leading manufacturer of TDI where it has a dominant 50% market share and we have of late seen a surge in the prices of TDI because of disruption in China, Japan and Korea. That is tremendously positive for this company. To add to this, this company would be a major beneficiary of good monsoon, farm loan waiver and the government’s focus on rural economy. To add to this all, the recent reduction in GST rates on fertilisers from the earlier fixed 12% to 5% also would be pretty positive. And this company also has been appointed as a nodal agency for digitalisation of residential townships by NITI Aayog which would also be a big positive. All in all, it is good stock and at the current levels, it trades at a reasonable valuation. I am bullish on the stock. One should buy into this stock at the current levels and my targets are Rs 400 in a year.”
Further Reading : Ginni filaments DD Sharmas another new pick
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