GNFC complete analysis📊
Kindly Like & RT for max reach🙏
#StockMarket #Stocks #Stock #StockMarketIndia #StocksToBuy
@kuttrapali26 @KommawarSwapnil @AdeptMarket @caniravkaria @nilishamantri_ @harrie007 @mystock_myview @chartbent @josephseby78 @Ishan_Narayan_
(1/14)
Kindly Like & RT for max reach🙏
#StockMarket #Stocks #Stock #StockMarketIndia #StocksToBuy
@kuttrapali26 @KommawarSwapnil @AdeptMarket @caniravkaria @nilishamantri_ @harrie007 @mystock_myview @chartbent @josephseby78 @Ishan_Narayan_
(1/14)
Before reading, kindly join our telegram where we post lots of information along with great technical charts everyday!
Use the link below👇
telegram.me
Use the link below👇
telegram.me
Contents :-
👉About the company
👉Key services offered
👉Industry analysis
👉Financial position
👉Key risks involved
👉Outlook & Expectations
👉Technical analysis
👉About the company
👉Key services offered
👉Industry analysis
👉Financial position
👉Key risks involved
👉Outlook & Expectations
👉Technical analysis
First lets try to know about the company🏣🏣
👉GNFC has extended its profile beyond fertilizers through a process of horizontal integration.
👉Chemicals/petrochemicals, energy sector, electronics/telecommunications & information technology form its corporate portfolio.
(2/14)
👉Chemicals/petrochemicals, energy sector, electronics/telecommunications & information technology form its corporate portfolio.
(2/14)
Now, lets have a look at the key services offered by the company🛠️🛠️
👉They make industrial chemicals like Acetic, Nitric, Methanol (used in chemicals, resins) & formic (used in rubber, textiles, tanneries & pharma) acid.
👉Also, both methanol & formic acid are regularly being exported to international markets too.
(3/14)
👉Also, both methanol & formic acid are regularly being exported to international markets too.
(3/14)
👉They manufacture & sell fertilizers like Urea & Nitrophosphate. Company also has the largest Ammonia & Urea plant in India.
👉They manufacture & market Neem De-Oiled Cakes & Narmada Neem Pesticides.
👉They also trade DAP, MOP, SSP, Ammonium sulphate & City Compost.
(4/14)
👉They manufacture & market Neem De-Oiled Cakes & Narmada Neem Pesticides.
👉They also trade DAP, MOP, SSP, Ammonium sulphate & City Compost.
(4/14)
Now, lets analyze the Industry📊📊
Fertilizer segment :- A business which is governed by policies & working capital intensive. Company has no plans of expansion in this. 25-30% of demand is met by imports (good opportunity for domestic players). Contributes 29% to revenue. Low margin (1% EBIT) business.
(5/14)
(5/14)
Chemical segment :- GNFC deals in bulk chemicals. 70% of revenues come from here. Indian chemical industry was USD 178 billion in 2021 & will reach USD 300 billion by 2025. Tailwinds from CHINA + 1 theme as well. High margin (36% EBIT) business.
(6/14)
(6/14)
Now, lets have a little look at the company's financial position💰
👉Company's financial risk profile is strong with absence of long term debt, healthy networth & lower utilisation of the working capital limits.
👉Profitability indicators of the company have also improved during FY22.
(7/14)
👉Profitability indicators of the company have also improved during FY22.
(7/14)
👉EBITDA margin from 24.19% to 28.00%.
👉Net margin from 13.44% to 20.00% in.
👉Fertilizer revenue up 43% (1751 cr to 2509 cr). From loss of 24 cr to profit of 15 cr.
👉Chemical revenue up 83% (3305 cr to 6045 cr). Profit up 147% (874 cr to 2175 cr).
(8/14)
👉Net margin from 13.44% to 20.00% in.
👉Fertilizer revenue up 43% (1751 cr to 2509 cr). From loss of 24 cr to profit of 15 cr.
👉Chemical revenue up 83% (3305 cr to 6045 cr). Profit up 147% (874 cr to 2175 cr).
(8/14)
Now, lets have a look at the key risks involved⛔️⛔️
👉Most products are import substitutes hence there is a fierce competition from dominant foreign suppliers.
👉NBS support may not match with actual input costs & may affect profitable operations.
👉Geographical risk as 65% of fertilizer revenue is from Gujrat.
(9/14)
👉NBS support may not match with actual input costs & may affect profitable operations.
👉Geographical risk as 65% of fertilizer revenue is from Gujrat.
(9/14)
👉Fertilizer segment depends on agriculture & monsoon which means risk of seasonality.
👉Company does not have own tech which creates risk of dependance on others.
👉Energy norms being prescribed without capital subsidy support increase further strain on resources.
(10/14)
👉Company does not have own tech which creates risk of dependance on others.
👉Energy norms being prescribed without capital subsidy support increase further strain on resources.
(10/14)
Now, time for outlook & future expectations🔎🔎
👉Company is the largest manufacturer of some key chemicals like Toulene Di-Isocynate (TDI), aniline & acetic acid.
👉Company is present in multiple states & has a strong brand recall. It has a strong market position in its operating segments.
(11/14)
👉Company is present in multiple states & has a strong brand recall. It has a strong market position in its operating segments.
(11/14)
👉Strong financial risk profile, high financial flexibility, no long term debt, negligible utilisation of working capital limits & generation of substantial cash are some key positives.
👉Expect the chemical buoyancy to continue & the segment to perform better.
(12/14)
👉Expect the chemical buoyancy to continue & the segment to perform better.
(12/14)
👉Products like weak nitric acid, concentrated nitric acid, ammonium nitrate & technical grade urea are likely to witness robust demand.
👉With NBS rates announced till September 2022, expect fertilizer margins to be protected.
👉Expect 3 year sales CAGR of around 15%.
(13/14)
👉With NBS rates announced till September 2022, expect fertilizer margins to be protected.
👉Expect 3 year sales CAGR of around 15%.
(13/14)
Now, lets have a look at the company technically📈📉
Here is the chart of GNFC in daily time frame.
(14/14)
(14/14)
I hope my thread helped you in knowing Reliance Industries better than before. Please don't forget to join our telegram channel its absolutely FREE & we are doing a lot of hard work here. telegram.me
Thanks for reading,
The Market Learner.
Thanks for reading,
The Market Learner.
Loading suggestions...