GAEL jumps over 5 per cent; know why it is outperforming!

Gujarat Ambuja Exports Limited (GAEL) is primarily involved in the manufacturing of corn starch derivatives, soya derivatives, feed ingredients, cotton yarn, and edible oils. Since its incorporation in 1991, GAEL strives to serve the food, pharmaceutical, feed, and many other industries with a long-term growth strategy in the agro-processing sector.  

The stock jumped over 5 per cent on Monday accompanied by higher volumes. We are still mid-way through the trading session but the volume has already surpassed its prior trading session volume. Not only this, the current volume is its highest single-day volume in the last three months.   

So, let’s know why the stock is buzzing on the bourses today! The company has decided to set up a greenfield corn wet milling plant to manufacture starch, starch derivatives, and polyols viz., Sorbitol, Maltitol & Mannitol at Sitarganj (Uttarakhand).   

Its existing capacity is 750 TPD (Unit I & Unit II) while the capacity utilisation of the existing capacity is 90 per cent. Meanwhile, the proposed capacity addition is 1,000 TPD (Unit III) and the period within which the proposed capacity is to be added is around 18 months. It will require an investment of approx. Rs 400 crore to Rs 500 crore while the mode of financing would be internal accruals.