Gujarat State Fertilizer & Chemicals Ltd - 500690

Name of Company	Gujarat State Fertilizer & Chemicals Ltd.
BSE Code	500690
NSE Code	GSFC
ICICI Code
Established	1962
My Take	So-So
Headquarters	Vadodara
Promoters	Gujarat State govt
Story	Manufactures Urea, DAP, APS, NPK, bio-fertilizers, and more.
Sector	Fertilizers
Sub-sector
Website	http://www.gsfclimited.com
Positives	Regular dividend payer. Yield > 1% can be expected at current prices. Can expect 15 to 20% ROCE based on previous year’s numbers. 38% promoter holding, 36% institutional holding. Profits and sales are averagely half that of the biggest player Coromandel’s, but market cap is one third. Market leaders do get a better valuation. As Coromandel seems cheap right now, this seems cheap as well.
Negatives	Gujarat state run undertaking, which can face political pressure at times – including pricing & labor issues.
Peers	Coromandel Int, National Fetilizer, Rashtriya Chem, FACT, GNFC, Zuari Inds
News
Price @ blogged	362.05 (07-Jul-11)
Cost of company	2885.54 Cr market cap for a 749.37 Cr NP in FY ending Mar ' 11 makes it 3.85 times. This is for a company with 687.58 Cr debt and 2064.43 Cr reserves. 750 Cr is not the kind of profits we can expect for this company, so the PE makes it look small.
Group
Growth	Not a huge growth oriented company. Was a 2000 Cr revenue company in FY01, it is now a 4000-6000 Cr revenue company (FY10 and FY11).  Even 3 times in 10 years is not so great.