Ghcl Limited (GHCL) AI Stock Analysis

• Market Cap: ₹54.81B
• Dividend Yield: 2.1%
• Average Volume (3M): 7.33K
• Price to Earnings (P/E): 9.6
• Beta (1Y): 1.36
• Revenue Growth: -5.14%
• EPS Growth: 7.25%
• Country: IN
• Employees: 979
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 11.11
• Shares Outstanding: 96,072,080
• 10 Day Avg. Volume: 6,193
• 30 Day Avg. Volume: 7,333
• PEG Ratio: -0.45
• Price to Book (P/B): 1.72
• Price to Sales (P/S): 1.89
• P/FCF Ratio: 18.62
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ₹624.00 ▲(9.38% Upside)

Ghcl Limited's overall stock score reflects its strong financial health and attractive valuation, which are offset by bearish technical indicators. The company's robust balance sheet and low leverage provide strategic flexibility, but the current market momentum suggests caution. Investors may find value in the stock's low P/E ratio and dividend yield, but should be mindful of the technical analysis signals.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage provides GHCL with strategic flexibility and resilience against economic downturns, supporting long-term stability.

Operational Profitability

Strong operational profitability indicates efficient cost management and the ability to generate healthy earnings, which supports sustainable business growth.

Strategic Partnerships

Strategic partnerships enhance market reach and boost sales, positioning GHCL to capitalize on growth opportunities in domestic and international markets.

Negative Factors

Inconsistent Revenue Growth

Inconsistent revenue growth can hinder long-term planning and investment, potentially affecting GHCL's ability to sustain competitive advantages.

Free Cash Flow Variability

Variability in free cash flow generation can impact GHCL's ability to fund operations and growth initiatives, posing a risk to financial stability.

Volatile Net Profit Margin

Volatile net profit margins suggest challenges in maintaining consistent profitability, which could affect investor confidence and long-term financial performance.

Ghcl Limited Business Overview & Revenue Model

Company Description

GHCL Limited is an Indian multinational company engaged in the manufacturing and marketing of various products across multiple sectors, including textiles, chemicals, and consumer products. The company is known for its expertise in producing cotton and synthetic yarns, home textiles, and a diverse range of chemical products such as soda ash and sodium bicarbonate. GHCL operates with a commitment to sustainability and innovation, catering to both domestic and international markets.

How the Company Makes Money

GHCL generates revenue primarily through the sale of its core products in the textiles and chemicals sectors. The textile segment contributes significantly to its earnings by producing and selling a variety of yarns and home textile products to retailers and wholesalers globally. In the chemicals division, GHCL is a leading manufacturer of soda ash, which is utilized in industries such as glass manufacturing, detergents, and chemicals, allowing the company to tap into a stable demand market. Additionally, GHCL has established strategic partnerships with key players in the retail sector to enhance its distribution network, thereby increasing market reach and boosting sales. The company also benefits from export opportunities, leveraging its manufacturing capabilities to supply products to international clients, which further diversifies its revenue streams.

Ghcl Limited Financial Statement Overview

Summary

Ghcl Limited demonstrates a strong financial position with a robust balance sheet and good operational profitability. However, challenges exist in revenue growth consistency and free cash flow generation. The low leverage provides strategic flexibility, but stabilizing revenue and cash flow growth is crucial.

Income Statement

Ghcl Limited's income statement shows a mixed performance. The gross profit margin has shown stability, indicating efficient cost management. However, the net profit margin has been volatile, reflecting fluctuations in operational efficiency. The revenue growth rate has been inconsistent, with a noticeable decline in the latest fiscal year. EBIT and EBITDA margins have been relatively strong, suggesting good operational profitability despite the revenue challenges.

Balance Sheet

The balance sheet of Ghcl Limited is robust, with a low debt-to-equity ratio reflective of strong financial health and low leverage risk. The return on equity has been healthy, indicating effective use of shareholder funds. The equity ratio is quite high, showcasing a solid capital structure and financial stability.

Cash Flow

The cash flow statement indicates challenges in maintaining free cash flow growth, which has been inconsistent. The operating cash flow to net income ratio is favorable, suggesting that earnings quality is good. However, free cash flow to net income ratio shows variability, indicating potential issues in cash generation relative to profits.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	31.49B	31.83B	34.36B	45.45B	37.78B	24.91B
Gross Profit	14.50B	15.19B	14.25B	20.98B	10.18B	6.45B
EBITDA	9.29B	8.76B	11.20B	15.95B	7.32B	6.02B
Net Income	6.18B	6.24B	7.94B	11.42B	6.50B	3.26B
Balance Sheet
Total Assets	0.00	41.85B	37.70B	51.33B	49.95B	39.78B
Cash, Cash Equivalents and Short-Term Investments	10.73B	10.74B	8.93B	5.00B	2.44B	614.60M
Total Debt	0.00	1.19B	2.10B	3.61B	7.88B	7.82B
Total Liabilities	-34.89B	6.97B	7.91B	11.78B	19.10B	14.94B
Stockholders Equity	34.89B	34.89B	29.78B	39.56B	29.47B	24.84B
Cash Flow
Free Cash Flow	0.00	3.23B	6.91B	4.99B	3.06B	5.09B
Operating Cash Flow	0.00	6.38B	7.97B	8.56B	6.43B	6.21B
Investing Cash Flow	0.00	-3.58B	-5.34B	-4.03B	-3.37B	-1.09B
Financing Cash Flow	0.00	-2.30B	-3.38B	-5.36B	-980.70M	-5.69B

Ghcl Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 570.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:GHCL, the sentiment is Negative. The current price of 570.5 is below the 20-day moving average (MA) of 581.38, below the 50-day MA of 607.99, and below the 200-day MA of 597.43, indicating a bearish trend. The MACD of -9.41 indicates Positive momentum. The RSI at 41.97 is Neutral, neither overbought nor oversold. The STOCH value of 19.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:GHCL.

Ghcl Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMFA	76 Outperform	₹76.67B	23.20	―	1.05%	-6.18%	-23.70%
GNFC	70 Outperform	₹71.40B	11.23	―	3.70%	-7.53%	42.74%
GSFC	68 Neutral	₹69.18B	10.35	―	2.88%	15.25%	26.49%
GHCL	66 Neutral	₹54.81B	9.61	―	2.10%	-5.14%	7.25%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
BALAMINES	61 Neutral	₹36.15B	24.80	―	0.99%	-10.76%	-27.70%
GUJALKALI	59 Neutral	₹37.15B	24,796.57	―	3.12%	10.35%	―

Ghcl Limited Corporate Events

GHCL Limited Completes Equity Share Buyback

GHCL Limited has announced the completion of a buyback of 41,37,931 equity shares, valued at INR 10 each, through a tender offer. The buyback was executed at a price of INR 725 per share, totaling up to INR 300 crore, excluding transaction costs. This move is part of the company’s strategy to enhance shareholder value and optimize its capital structure.

GHCL Limited Reports Q2 FY26 Results Amidst Strategic Initiatives

GHCL Limited announced its Q2 FY26 financial results, highlighting a 9% decline in net revenue and a 31% drop in net profit compared to the previous year. Despite challenges from cheap imports and global uncertainties, the company is maintaining healthy margins through cost optimization. GHCL is also planning a Rs. 300 crore share buyback to enhance shareholder value and is optimistic about future growth with diversification efforts and potential anti-dumping duties on soda ash.