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

• Market Cap: ₹67.31B
• Dividend Yield: 3.68%
• Average Volume (3M): 13.00K
• Price to Earnings (P/E): 10.8
• Beta (1Y): 1.23
• Revenue Growth: -7.53%
• EPS Growth: 42.74%
• Country: IN
• Employees: 2,134
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 10.21
• Shares Outstanding: 146,940,690
• 10 Day Avg. Volume: 10,140
• 30 Day Avg. Volume: 12,997
• PEG Ratio: 0.49
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.87
• P/FCF Ratio: 47.49
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ₹488.00 ▼(-1.11% Downside)
• Action: Reiterated Date: 11/01/25
• Date: Action: Reiterated 11/01/25

The overall stock score of 70 reflects a strong financial performance with solid revenue growth and a robust balance sheet, despite some profitability pressures and cash flow volatility. Technical analysis shows mixed signals, with short-term bullish momentum but potential longer-term downtrend. The valuation is reasonable with a fair P/E ratio and attractive dividend yield, offering a balanced risk-reward profile.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage enhances financial stability and reduces risk, providing a solid foundation for future growth and investment.

Revenue Diversification

Diversified revenue streams reduce dependency on a single market, enhancing resilience against sector-specific downturns and aligning with sustainable trends.

Operational Efficiency

Improved operational efficiency suggests better cost management and resource utilization, supporting long-term profitability and competitiveness.

Negative Factors

Profitability Pressures

Declining net profit margins indicate challenges in maintaining profitability, which could affect future earnings and investment capacity.

Cash Flow Volatility

Volatile cash flow can hinder the company's ability to reinvest and meet financial obligations, impacting long-term financial flexibility.

Decreased Return on Equity

A declining return on equity suggests reduced efficiency in generating profits from shareholders' equity, potentially affecting investor confidence.

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

Company Description

Gujarat Narmada Valley Fertilizers & Chemicals Limited manufactures and markets fertilizers and chemicals in India and internationally. It offers fertilizers, such as neem coated urea, ammonium nitrophosphate, neem de-oiled cake, Neem Manure, and neem pesticides under the NARMADA brand; and various neem based products, including soaps, hand and face wash products, and shampoos. The company also trades in muriate of potash, di-ammonium phosphate, ammonium sulphate, single super phosphate, and city compost. In addition, it provides industrial chemicals, such as methanol, acetic acid, toluene di – isocyanate, aniline, concentrated nitric acid, weak nitric acid, formic acid, ammonium nitrate, ethyl acetate, methyl formate, calcium carbonate, nitrobenzene, catsol, and technical grade urea, as well as other products comprising hydrochloric acid, liquid nitrogen, ortho-toluene diamine, meta-toluene diamine, dilute sulphuric acid, dilute nitric acid, and sodium hypochlorite. Further, the company offers various information technology services consisting of public key infrastructure and digital signature certificate, time stamping, e-procurement, e-governance, system integration, e-auction, education domain, data center, CCTV, cloud, software application, authentication, and payment gateway services. The company was formerly known as Gujarat Narmada Valley Fertilizers Co. Ltd. Gujarat Narmada Valley Fertilizers & Chemicals Limited was incorporated in 1976 and is headquartered in Bharuch, India.

How the Company Makes Money

GNFC generates revenue primarily through the sale of its core products, including fertilizers and chemicals. The company produces urea, which is a key nitrogenous fertilizer, and sells it to farmers and agricultural businesses, contributing significantly to its income. Additionally, GNFC manufactures and sells industrial chemicals, including ammonia and phosphoric acid, to various industries, further diversifying its revenue streams. The company may also engage in export activities, selling its products in international markets. Strategic partnerships with agricultural cooperatives and government initiatives supporting fertilizer distribution help enhance its market reach and sales volume. Furthermore, GNFC's involvement in water management and renewable energy projects provides additional avenues for income generation, aligning with sustainability trends and government policies aimed at promoting green technologies.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	74.72B	83.93B	78.95B	102.07B	86.23B	51.12B
Gross Profit	26.92B	24.13B	16.93B	52.19B	46.40B	27.84B
EBITDA	10.47B	11.16B	9.70B	22.39B	25.93B	12.40B
Net Income	5.62B	5.97B	4.97B	14.72B	17.10B	6.97B
Balance Sheet
Total Assets	0.00	110.03B	106.72B	116.96B	107.34B	83.85B
Cash, Cash Equivalents and Short-Term Investments	29.27B	30.52B	16.47B	22.72B	8.67B	11.72B
Total Debt	0.00	1.06B	27.30M	19.80M	17.70M	40.60M
Total Liabilities	-85.75B	24.28B	23.63B	25.90B	27.44B	23.17B
Stockholders Equity	85.75B	85.75B	83.09B	91.05B	79.90B	60.68B
Cash Flow
Free Cash Flow	0.00	1.53B	-2.20B	12.00B	18.29B	16.68B
Operating Cash Flow	0.00	6.06B	312.80M	13.73B	19.67B	18.84B
Investing Cash Flow	0.00	-4.66B	12.35B	-12.29B	-18.99B	-8.56B
Financing Cash Flow	0.00	-2.62B	-12.81B	-1.60B	-1.30B	-9.34B

Gujarat Narmada Valley Fertilizers & Chemicals Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 493.50
• 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:GNFC, the sentiment is Negative. The current price of 493.5 is above the 20-day moving average (MA) of 467.05, above the 50-day MA of 473.90, and below the 200-day MA of 500.35, indicating a bearish trend. The MACD of -4.03 indicates Positive momentum. The RSI at 41.47 is Neutral, neither overbought nor oversold. The STOCH value of 17.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	70 Outperform	₹67.31B	10.80	―	3.68%	-7.53%	42.74%
GSFC	68 Neutral	₹68.18B	9.85	―	2.80%	15.25%	26.49%
RCF	62 Neutral	₹70.26B	22.43	―	0.93%	-3.19%	59.25%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
MADRASFERT	48 Neutral	₹11.22B	157.06	―	―	3.38%	0.68%
NFL	45 Neutral	₹37.97B	19.50	―	1.77%	-7.78%	-70.89%

Gujarat Narmada Valley Fertilizers & Chemicals Ltd. Corporate Events

GNFC Publishes Q3 and Nine-Month FY26 Unaudited Results in Newspapers

Gujarat Narmada Valley Fertilizers & Chemicals Ltd. has notified the stock exchanges that it has published its unaudited financial results for the third quarter and nine months ended 31 December 2025 in leading Ahmedabad and Vadodara editions of national and regional newspapers. The results, approved by the board on 10 February 2026, have also been made available on the company’s website, in line with Securities and Exchange Board of India disclosure requirements, reinforcing its compliance and transparency for investors and other stakeholders.

GNFC Schedules Q3 FY 25-26 Investor Call and Releases Presentation

Gujarat Narmada Valley Fertilizers & Chemicals Ltd. has notified the stock exchanges that its senior executives will participate in an investors and analysts conference call on February 11, 2026, to discuss the company’s performance for the third quarter of FY 2025-26. The move underscores the company’s ongoing investor engagement efforts and transparency, with the related Q3 FY 25-26 investor presentation now made available to the market through both the exchanges and the company’s website.

The communication, filed under disclosure norms, signals GNFC’s intent to keep stakeholders informed about its quarterly business developments and financial performance. By organizing a dedicated investor meet and releasing a detailed presentation, the company is reinforcing its compliance with regulatory requirements and supporting informed decision-making for shareholders and analysts tracking its operations and outlook.

GNFC Shareholders Approve New Chairman Appointment and Cost Auditor Remuneration

Gujarat Narmada Valley Fertilizers & Chemicals Ltd. has announced that its shareholders have approved, via a postal ballot conducted through remote e-voting, the appointment of Shri Manoj Kumar Das, IAS, as Director and Chairman of the company, as well as the ratification of remuneration payable to the cost auditor for the 2025-26 financial year. The resolutions, passed with the requisite majority and effective as of January 1, 2026, underscore a formal endorsement of the company’s leadership and audit-cost structure, signaling governance continuity and regulatory compliance that may support operational stability and stakeholder confidence.