Arihant Capital has given Buy recommendation for GHCL with a target price of Rs. 898 in its research report issued on May 04, 2022
Arihant Capital’s research report on GHCL
GHCL Ltd. is the largest single location manufacturer of Soda Ash in India. It has a plant facility at Sutrapada in Gujarat. It reported its Q4FY22 earnings which were robust and above our estimates. The company has benefitted from operational efficiencies and supportive industry dynamics in soda ash segment.
The Textile business is valued by applying 25% discount to its replacement cost, yielding per share value of INR 98. Accordingly, we maintain our BUY rating on the stock with the Target Price of INR 898 per share.