Gujarat Narmada Valley Fertilizers & Chemicals Ltd. (GNFC) AI Stock Analysis

• Market Cap: ₹79.01B
• Dividend Yield: 3.46%
• Average Volume (3M): 35.37K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 1.30
• Revenue Growth: -9.97%
• EPS Growth: 9.63%
• Country: IN
• Employees: 2,134
• Sector: Basic Materials
• Sector Strength: 73
• Industry: Chemicals
• EPS (TTM): 5.65
• Shares Outstanding: 146,940,690
• 10 Day Avg. Volume: 36,238
• 30 Day Avg. Volume: 35,371
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹598.00
• Price Target Upside: 15.01% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: ₹598.00 ▲(15.01% Upside)

The overall stock score of 72.6 reflects strong financial performance and reasonable valuation. The company's robust balance sheet and revenue growth are significant strengths, though profitability pressures and cash flow volatility present challenges. Technical indicators suggest a neutral to slightly bearish outlook, with the stock nearing overbought conditions.

Gujarat Narmada Valley Fertilizers & Chemicals Ltd. Business Overview & Revenue Model

Company Description

Gujarat Narmada Valley Fertilizers & Chemicals Ltd. (GNFC) is a leading Indian company operating in the chemical and fertilizer industry. Established in 1976, GNFC is headquartered in Bharuch, Gujarat. The company is engaged in the production and marketing of a wide range of fertilizers, including urea and nitrogenous fertilizers, as well as industrial chemicals such as methanol, formic acid, nitric acid, and acetic acid. GNFC plays a crucial role in supporting the agricultural sector while also catering to the needs of various industries with its chemical products.

How the Company Makes Money

GNFC generates revenue primarily through the sale of its fertilizers and industrial chemicals. The company's key revenue streams include the production and distribution of urea and other nitrogen-based fertilizers, which are essential for enhancing agricultural productivity. Additionally, GNFC manufactures and sells a variety of industrial chemicals used in different sectors such as pharmaceuticals, textiles, and petrochemicals. The company's revenue is further supported by strategic partnerships and collaborations that enhance its market reach and distribution capabilities. Government subsidies on fertilizers also play a significant role in its earnings, given the importance of agriculture in India. GNFC's diversified product portfolio and its ability to cater to both domestic and international markets contribute to its steady revenue growth.

Gujarat Narmada Valley Fertilizers & Chemicals Ltd. Financial Statement Overview

Summary

Gujarat Narmada Valley Fertilizers & Chemicals Ltd. exhibits strong revenue growth and operational efficiency, as reflected in the income statement. The balance sheet is solid with low leverage and a high equity ratio, indicating financial health. Cash flow statements reveal some operational cash flow challenges despite positive free cash flow trends. Overall, the company is on a growth trajectory with a stable financial position, though it faces profitability pressures and cash flow volatility.

Income Statement

The company shows strong revenue growth with a notable increase in gross profit margin from 21.45% to 28.75% in the latest year. However, net profit margin decreased from 17.24% in 2022 to 7.11% in 2025, indicating pressure on profitability despite revenue growth. The EBIT margin saw improvement, reflecting operational efficiency, but the EBITDA margin decreased, suggesting potential cost pressures. Overall, the income statement reflects a solid growth trajectory with some profitability challenges.

Balance Sheet

The balance sheet is robust with a high equity ratio of 77.92%, indicating strong financial health and low leverage. The debt-to-equity ratio remains very low, reducing financial risk. Return on equity decreased from 21.41% in 2022 to 6.96% in 2025, which could imply lower efficiency in generating profits from shareholders' equity. Overall, the balance sheet demonstrates financial stability with a strong equity base and low debt risk.

Cash Flow

The cash flow statement shows fluctuations, with operating cash flow remaining positive but decreasing significantly from 2022 to 2025. The free cash flow growth rate is positive, indicating improved cash generation from operations. However, the operating cash flow to net income ratio is low, suggesting that cash generation is lagging behind accounting profits. Despite these fluctuations, the company maintains a positive free cash flow, reflecting potential for reinvestment and debt repayment.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2022	Dec 2021	Dec 2021
Income Statement
Total Revenue	78.92B	83.93B	78.95B	102.07B	51.12B	86.23B
Gross Profit	24.12B	24.13B	16.93B	52.19B	27.84B	46.40B
EBITDA	11.18B	11.16B	9.70B	22.39B	12.40B	25.93B
Net Income	5.97B	5.97B	4.97B	14.72B	6.97B	17.10B
Balance Sheet
Total Assets	110.03B	110.03B	106.72B	116.96B	83.85B	107.34B
Cash, Cash Equivalents and Short-Term Investments	29.27B	30.52B	21.22B	22.72B	11.72B	8.67B
Total Debt	1.06B	1.06B	27.30M	19.80M	40.60M	17.70M
Total Liabilities	24.28B	24.28B	23.63B	25.90B	23.17B	27.44B
Stockholders Equity	85.75B	85.75B	83.09B	91.05B	60.68B	79.90B
Cash Flow
Free Cash Flow	0.00	1.53B	-2.20B	12.00B	16.68B	18.29B
Operating Cash Flow	0.00	6.06B	312.80M	13.73B	18.84B	19.67B
Investing Cash Flow	0.00	-4.66B	12.35B	-12.29B	-8.56B	-18.99B
Financing Cash Flow	0.00	-2.62B	-12.81B	-1.60B	-9.34B	-1.30B

Gujarat Narmada Valley Fertilizers & Chemicals Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 519.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:GNFC, the sentiment is Positive. The current price of 519.95 is above the 20-day moving average (MA) of 504.27, above the 50-day MA of 519.01, and below the 200-day MA of 521.02, indicating a neutral trend. The MACD of -0.68 indicates Negative momentum. The RSI at 56.32 is Neutral, neither overbought nor oversold. The STOCH value of 20.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:GNFC.

Gujarat Narmada Valley Fertilizers & Chemicals Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GNFC	73 Outperform	₹79.01B	13.59		3.46%	-9.97%	9.63%
GSFC	68 Neutral	₹78.72B	12.25		1.86%	3.26%	19.18%
RCF	64 Neutral	₹84.49B	30.31		0.81%	-8.23%	69.88%
Sector *	61 Neutral	$10.24B	6.18	0.71%	2.90%	3.45%	-36.02%
MANGCHEFER	61 Neutral	₹40.91B	25.34		0.43%	-7.43%	8.03%
MADRASFERT	55 Neutral	₹14.00B	21.03		―	13.28%	-15.77%
NFL	52 Neutral	₹47.90B	31.39		0.28%	-22.78%	-41.65%

Gujarat Narmada Valley Fertilizers & Chemicals Ltd. Corporate Events

GNFC Announces Trading Window Closure Ahead of Financial Results

Gujarat Narmada Valley Fertilizers & Chemicals Ltd. has announced the closure of its trading window in compliance with insider trading regulations, ahead of a board meeting scheduled for August 6, 2025, where the unaudited financial results for the first quarter ending June 30, 2025, will be considered. This move is part of the company’s adherence to regulatory standards, ensuring transparency and fairness in its trading practices, which is crucial for maintaining investor trust and compliance with market regulations.