Please refer to important disclosures at the end of this report
1
Gujarat Narmada Valley Fertilizers & Chemicals Limited (GNFC) is engaged in
operating businesses in the industrial chemicals, fertilizers and information
technology (IT) products space. GNFC is engaged in manufacturing and selling
fertilisers such as urea and ammonium nitro-phosphate under the Narmada
brand. The outlook for fertilizer business is positive following good monsoon. On
the chemical sector, the current low per capita consumption in the domestic
market and strong growth outlook for end usage are the key growth drivers fo
r
this industry. GNFC is planning to set up a lime purification project for which a
joint venture company with Santosh Agrochem LLP was set up to purif
y
by-product lime, to make it more marketable. This will resolve the environmental
issues and at the same time add value to the product. GNFC is partnering
Belgian firm Ecophos SA to set up a di-calcium phosphate plant at Dahej in
Gujarat at an estimated cost of `526crore. The company has initiated actions fo
r
setting up 2,00,000 mtpa di-calcium phosphate (DCP) project. With the
implementation of this project, entire hydrochloric acid (HCI) generated as
byproduct from the toulene di-isocyanate (TDI) plant at Dahej will be utilised fo
r
production of DCP, resulting into improvement in the profitability of TDI business.
The company is exploring opportunities in countries where there is availability o
f
raw materials like natural gas, rock phosphate and other petroleum products at
economic prices. Hence Buy.
BUY
CMP `200
Stock Info
Sector
Beta 1.0
Bloomberg Code
Shareholding Pattern (%)
Promoters 41.2
MF / Banks / Indian Fls 18.6
FII / NRIs / OCBs 14.7
Indian Public / Others 25.5
Abs. (%) 3m 1yr 3yr
Sensex (7.0) 2.5 25.4
P&G Hygiene 27.4 157.5 208.9
52 Week High / Low 292/66
Avg. Daily Volume 213,355
Agrichemical
Market Cap (` cr) 3,104
10
BSE Sensex 26,150
Nifty 8,074
Face Value (`)
Reuters Code GNFC.BO
GNFC@IN
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
G N F C
Others | Agrichemical
November 21, 2016
G N F C | Agrichemical
November 21, 2016
2
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Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)