Reviews

GUJARAT ALKALIES & CHEMICALS

Ticker: 530001 FV: Rs.10 
52-Week H/L: Rs. 932.35/433.75

We had recommended Gujarat Alkalies in Volume no 34, Issue No 50 (dated Oct 01, 2018), when the scrip was trading at Rs 613. Our recommendation was backed by factors such as its JV with NALCO and extensive capacity expansion plans. In Q2FY19, revenue came in at Rs 771.7 crore, up by 29.6 percent YoY. EBITDA for the quarter soared by 72.8 percent YoY to Rs 278.2 crore due to high operating leverage and the EBITDA margin jumped by 901 bps to 36% from 27%. PAT for the quarter surged by 63.9 percent YoY and PAT margin stood at 23 percent. During Q2FY19, it commissioned 14,000 MTPA hydrogen peroxide plant and 32,000 MTPA poly aluminium chloride plant in Gujarat. Considering such robust growth, we urge investors to HOLD the scrip.



INDIA GLYCOLS

Ticker: 500201 FV: Rs.10 
52-Week H/L: Rs. 619.90/326 

We had recommended India Glycols in Volume no 34, Issue No 51 (dated Oct 08, 2018), when the scrip was trading at Rs 417. Our recommendation was backed by factors like robust financials and rising demand across sectors. In Q2FY19, revenue rose by 7.03 percent YoY from Rs 888.26 crore to Rs 950.73 crore. EBITDA grew by 61.9 percent YoY from Rs 71 crore to Rs 115 crore and the EBITDA margin stood at 12 percent as against 8 percent in Q2FY18. PAT for the quarter jumped by 197.2 percent YoY to Rs 43.6 crore from Rs 14.6 crore. PAT margin stood at 4.6 percent in Q2FY19. The outlook for FY19 is positive in terms of robust growth in volumes and value. Thus, considering the robust performance, we urge investors to HOLD the scrip.