This Chemical & Fertilizers Company Reduces CO2 Emissions by 44,000 Tons Monthly with Clariant’s Catalyst, Targeting 520,000 Metric Tons Annually for Sustainability

With a PE ratio of 14.1x, the company trades at a discount compared to the industry PE of 27.8x. The company has ROCE of 7.71 per cent and ROE of 5.63 per cent.

Gujarat Narmada Valley Fertilizers & Chemicals Limited (GNFC) has made significant strides in environmental sustainability by installing Clariant's EnviCat N2O-S catalyst at its nitric acid plant. This innovative catalyst has achieved a remarkable reduction in nitrous oxide emissions, lowering them by approximately 44,000 tons of CO2 equivalent per month. This milestone aligns with GNFC's ongoing commitment to reducing its carbon footprint and promoting sustainable manufacturing practices. Executive Director Shri. M. I. Shamsi emphasized the company's dedication to environmental stewardship, highlighting the collaboration with Clariant as a key factor in reaching their sustainability goals. The projected annual reduction in CO2 equivalent emissions is estimated at 520,000 metric tons, with further improvements anticipated post-maintenance. GNFC continues to lead the industry in adopting technologies that contribute to a cleaner environment.

Gujarat Narmada Valley Fertilizers & Chemicals Limited (GNFC) is a joint sector enterprise established in 1976, promoted by Gujarat State Investments Limited and Gujarat State Fertilizers & Chemicals Ltd. Based in Bharuch, GNFC commenced its operations in 1982, focusing on industrial chemicals, fertilizers, and a minor presence in IT services. The company offers a diverse range of bulk chemicals utilized in various industries for specialty and end-product manufacturing. As of March 2025, GNFC's stock is priced at Rs 473.65, with a market capitalization of approximately Rs 7,089 crores. Despite a challenging period with a 1-year return of -22.95 per cent and a 3-year return of -36.46 per cent, GNFC remains committed to pioneering sustainable practices within the industry. The company has been maintaining a healthy dividend payout of 30.3 per cent.

In the Quarterly Results of Dec-24, the revenue stood at Rs 1,899.00 crore, reflecting a YoY decline of 9.05 per cent and a QoQ decrease of 0.94 per cent from Rs 1,917.00 crore in Sep-24. The net profit for Dec-24 was Rs 158.00 crore, showing a YoY increase of 66.32 per cent and a QoQ rise of 54.90 per cent from Rs 102.00 crore in Sep-24. The net profit margin for Dec-24 was 8.32 per cent, compared to 5.32 per cent in Sep-24 and 4.55 per cent in Dec-23.

For the full-year FY24 results, the revenue stood at Rs 7,929.73 crore, reflecting a decline of 22.46 per cent from Rs 10,226.93 crore in FY23. The net profit for FY24 was Rs 502.00 crore, showing a decrease of 98.59 per cent from Rs 15.59 crore in FY23. The net profit margin for FY24 stood at 0.20 per cent compared to 10.78 per cent in FY23.

As of December 2024, the shareholding pattern shows that promoters hold 41.30 per cent, FIIs hold 15.41 per cent, DIIs hold 11.10 per cent, and the public holds 32.18 per cent. There is a significant decline in FII holdings from 16.15 per cent in the previous quarter to 15.41 per cent, while public shareholding has increased from 31.38 per cent to 32.18 per cent.

With a PE ratio of 14.1x, the company trades at a discount compared to the industry PE of 27.8x. The company has ROCE of 7.71 per cent and ROE of 5.63 per cent.  

Investors must keep this Small-Cap stock on their radar.

Disclaimer: The article is for informational purposes only and not investment advice.