Gujarat Alkalies and Chemicals - 530001

Name of Company	Gujarat Alkalies and Chemicals
BSE Code	530001
NSE Code	GUJALKALI
ICICI Code
Established
My Take	So-So
Headquarters	Vadodara
Promoters	Gujarat Government
Story	917 Cr market cap company at current prices.
Sector	Chemicals
Sub-sector	Manufactures and markets
Website	http://www.gujaratalkalies.com/
Positives	Regular dividend paying company (can expect dividends in September, expected yield is 1.7% or more). Not very costly as 171 Cr is FY10 net profit, while market cap is 917, i.e. at 5.3 times. Around 13% or more NPMs have been maintained in the last 5 year timeframe. 1300 Cr reserves for a 1300 Cr revenue is attractive, the reserves is more than the market cap itself. Around 25-30% of this share is held by DII's.
Negatives	37% promoter holding. Gujarat Industrial Investment corporation has pledged its full 9.69% stake. This company is not growing – 940 Cr to 1300 Cr revenues from FY06 to FY10. The company has a 330 Cr debt in FY09.
Peers
News
Price @ blogged	125 (5-Jul-10)