⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
GNFC - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | GNFC | Market Cap | 6,999 Cr. | Current Price | 476 ₹ | High / Low | 585 ₹ |
| Stock P/E | 11.2 | Book Value | 580 ₹ | Dividend Yield | 3.78 % | ROCE | 9.70 % |
| ROE | 7.03 % | Face Value | 10.0 ₹ | DMA 50 | 492 ₹ | DMA 200 | 517 ₹ |
| Chg in FII Hold | 0.05 % | Chg in DII Hold | 0.43 % | PAT Qtr | 177 Cr. | PAT Prev Qtr | 78.0 Cr. |
| RSI | 40.3 | MACD | -4.33 | Volume | 1,15,828 | Avg Vol 1Wk | 1,31,856 |
| Low price | 449 ₹ | High price | 585 ₹ | PEG Ratio | -0.37 | Debt to equity | 0.00 |
| 52w Index | 20.0 % | Qtr Profit Var | 73.5 % | EPS | 42.4 ₹ | Industry PE | 18.8 |
📊 Core Financials
- Revenue Growth: Quarterly PAT rose from ₹78 Cr. to ₹177 Cr. (+73.5% QoQ)
- Profit Margins: EPS at ₹42.4, moderate profitability
- ROE: 7.03% (below industry average, modest returns)
- ROCE: 9.70% (average capital efficiency)
- Debt-to-Equity: 0.00 (debt-free, strong balance sheet)
- Cash Flow: Stable, supported by debt-free operations
💹 Valuation Indicators
- P/E Ratio: 11.2 (attractive vs industry PE of 18.8)
- P/B Ratio: 0.82 (current price ₹476 / book value ₹580, undervalued)
- PEG Ratio: -0.37 (negative, indicates weak earnings growth outlook)
- Intrinsic Value: Estimated near ₹500–₹520, slightly above current market price
🏭 Business Model & Competitive Advantage
- Diversified chemicals and fertilizers company with strong presence in industrial chemicals
- Government-backed entity ensuring operational stability
- Competitive advantage: debt-free status, strong dividend yield, and diversified product portfolio
📈 Entry Zone & Long-Term Guidance
- Entry Zone: ₹450–₹480 (near current levels and 52-week low)
- Long-Term Holding: Suitable for 3–5 years horizon, supported by dividend yield and debt-free balance sheet
Positive
- Debt-free company with strong balance sheet
- Dividend yield of 3.78% provides stable income
- P/E ratio lower than industry average, suggesting undervaluation
Limitation
- ROE and ROCE relatively weak compared to peers
- PEG ratio negative, indicating weak growth prospects
- Stock trading below DMA 200, showing weak momentum
Company Negative News
- Quarterly profit variation volatile, despite recent surge
- Growth outlook remains uncertain with PEG ratio negative
Company Positive News
- Quarterly PAT surged to ₹177 Cr. from ₹78 Cr.
- FII holding increased by 0.05% and DII holding increased by 0.43%
Industry
- Chemicals and fertilizers industry cyclical, tied to commodity demand and government policies
- Industry PE at 18.8, higher than GNFC’s 11.2, highlighting undervaluation
- Government push for agriculture and industrial chemicals supports long-term demand
Conclusion
- GNFC shows financial stability with debt-free operations and attractive dividend yield
- Valuation appears undervalued, entry advisable near ₹450–₹480
- Long-term investors can hold for 3–5 years to benefit from stable demand and dividend income
Would you like me to also prepare a peer comparison snapshot (e.g., Deepak Nitrite, Gujarat Alkalies, Tata Chemicals) to contextualize GNFC’s fundamentals against other chemical sector peers?