Gujarat State Fertilizers & Chemicals Limited (GSFC) AI Stock Analysis

• Market Cap: ₹65.69B
• Dividend Yield: 2.8%
• Average Volume (3M): 54.02K
• Price to Earnings (P/E): 9.7
• Beta (1Y): 1.25
• Revenue Growth: 15.25%
• EPS Growth: 26.49%
• Country: IN
• Employees: 2,855
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Agricultural Inputs
• EPS (TTM): 3.90
• Shares Outstanding: 398,477,540
• 10 Day Avg. Volume: 54,536
• 30 Day Avg. Volume: 54,023
• PEG Ratio: 2.54
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 0.76
• P/FCF Ratio: -24.40
• 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): 16.3
• Revenue Forecast (FY): ₹105.22B

• Rating: 68 Neutral
• Price Target: ₹180.00 ▼(-1.72% Downside)
• Action: Downgraded Date: 09/23/25
• Date: Action: Downgraded 09/23/25

Gujarat State Fertilizers & Chemicals Limited has a strong financial foundation with a solid balance sheet and consistent revenue growth. The technical indicators suggest a neutral trend with potential for bullish momentum. The stock is fairly valued with a reasonable P/E ratio and a decent dividend yield. However, cash flow challenges and limited upward momentum in technical indicators are areas of concern.

Positive Factors

Low leverage & strong equity base

Extremely low leverage and an 84.5% equity ratio give GSFC durable financial resilience. This capital structure reduces refinancing risk, preserves borrowing capacity for capex or modernization, and supports stability through commodity or subsidy timing shocks common in fertilizers.

Healthy gross and net margins

A ~36% gross margin and ~6% net margin indicate sustained ability to manage production costs and retain profitability across cycles. These margins support earnings durability and provide a buffer versus input cost swings, underpinning long-term cash generation if maintained.

Diversified fertilizers and chemicals portfolio

Operating across nitrogenous fertilizers and industrial chemicals gives GSFC multiple revenue streams and end-market exposure. This product mix reduces dependency on any single demand cycle, enables cross-utilization of manufacturing assets, and supports steadier revenue through cycles.

Negative Factors

Negative free cash flow & weak cash conversion

Recent negative free cash flow and a low operating-cash-to-net-income ratio (0.14) indicate difficulty converting accounting profits into discretionary cash. Persisting weak cash conversion limits reinvestment, constrains deleveraging/dividends, and increases sensitivity to working-capital or subsidy timing shocks.

Volatile gross profit history

Historical swings in gross profit, including a negative reading in 2024, show margin exposure to episodic events. Such volatility undermines forecasting reliability, can force margin compression in adverse input-price periods, and raises execution risk for sustaining operating efficiency.

Regulated pricing and input-cost exposure

Dependence on government-determined fertilizer pricing and subsidy flows, plus sensitivity to energy and feedstock costs, creates structural earnings and cash-flow risk. Policy timing and commodity price swings can materially affect margins and working-capital needs over months.

Gujarat State Fertilizers & Chemicals Limited Business Overview & Revenue Model

Company Description

Gujarat State Fertilizers & Chemicals Limited manufactures and sells fertilizers and industrial products in India. The company offers industrial products, such as anhydrous ammonia, argon gas, caprolactam, melamine, methanol, methyl ethyl ketoxime, nylon-6, oleum, sulphuric acid, anone-anol mixture, cyclohexane, cyclohexanone, hydroxylamine sulphate, nitric acid, and technical grade urea. It also provides fertilizer products, including neem urea, ammonium sulphate, di-ammonium phosphate, ammonium phosphate sulphate, NPK, water soluble fertilizers, muriate of potash, micro mixes, and gypsum, as well as agro products. In addition, the company offers sulphur based products, plant tissue culture products, micro nutrients, soil conditioners, organic products, and seeds, as well as is involved in the trading services. Gujarat State Fertilizers & Chemicals Limited was incorporated in 1962 and is based in Vadodara, India.

How the Company Makes Money

GSFC generates revenue through the sale of its wide range of fertilizers and industrial chemicals. The company's key revenue streams include the domestic and international sale of urea and other nitrogenous fertilizers to farmers and agricultural businesses. Additionally, GSFC earns revenue from selling industrial chemicals like caprolactam and nylon-6 to industries involved in textiles, plastics, and other manufacturing sectors. The company benefits from strategic partnerships with both domestic and international distributors and suppliers, enhancing its market reach and operational efficiency. Government subsidies on fertilizers also play a significant role in its revenue model, providing financial support and stability in the competitive agrochemical market.

Gujarat State Fertilizers & Chemicals Limited Financial Statement Overview

Summary

Gujarat State Fertilizers & Chemicals Limited shows a strong financial position with a healthy balance sheet and solid income statement performance. The company has demonstrated consistent revenue growth and profitability with efficient cost management. However, cash flow challenges and occasional volatility in profit margins highlight areas for improvement. The low leverage and high equity ratio provide a stable financial foundation, positioning the company well for future growth.

Income Statement

The company demonstrates a robust gross profit margin of approximately 36.1% for the latest period, indicating strong cost management. The net profit margin stands at around 6.2%, which is healthy for the industry. Revenue growth has been consistent over the years, with a recent growth rate of 4.1%. The EBIT margin is about 4.6%, and the EBITDA margin is approximately 10.1%, reflecting solid operational efficiency. However, past fluctuations in gross profit (e.g., negative gross profit in 2024) suggest some volatility.

Balance Sheet

The balance sheet is strong, with a low debt-to-equity ratio of 0.01, indicating minimal financial leverage. The return on equity is steady at 4.9%, showcasing efficient use of shareholders' capital. The equity ratio is high at 84.5%, suggesting a solid financial foundation with ample equity backing. The company has maintained a stable asset base, which enhances financial stability. Despite these strengths, the volatility in net debt positions over the years indicates potential liquidity management challenges.

Cash Flow

The cash flow statement reveals some concerns, with negative free cash flow in recent years, although there has been improvement in operating cash flow to net income ratio at 0.14. The free cash flow to net income ratio is negative, reflecting challenges in converting profits into free cash flow. Despite these issues, the company has previously demonstrated strong cash flow from operations, suggesting potential recovery in cash generation capabilities.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	95.56B	95.34B	56.14B	55.45B	90.85B	76.34B
Gross Profit	34.43B	34.39B	-3.73B	-15.43B	-17.19B	20.34B
EBITDA	10.28B	9.47B	8.93B	17.40B	15.05B	7.57B
Net Income	6.42B	5.91B	5.64B	12.66B	8.99B	4.50B
Balance Sheet
Total Assets	0.00	143.69B	150.51B	139.09B	141.25B	111.64B
Cash, Cash Equivalents and Short-Term Investments	19.07B	19.87B	23.00B	14.33B	16.51B	11.12B
Total Debt	0.00	17.60M	51.09M	23.90M	54.98M	367.67M
Total Liabilities	-121.49B	22.20B	23.22B	18.68B	23.51B	19.21B
Stockholders Equity	121.49B	121.38B	127.27B	120.40B	117.72B	92.40B
Cash Flow
Free Cash Flow	0.00	-2.96B	-5.08B	7.82B	1.42B	16.94B
Operating Cash Flow	0.00	834.80M	-2.68B	9.24B	2.37B	17.83B
Investing Cash Flow	0.00	-1.72B	1.06B	-393.66M	-181.38M	-227.80M
Financing Cash Flow	0.00	-1.59B	-4.03B	-1.14B	-1.26B	-15.59B

Gujarat State Fertilizers & Chemicals Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 183.15
• 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:GSFC, the sentiment is Negative. The current price of 183.15 is above the 20-day moving average (MA) of 175.06, above the 50-day MA of 176.36, and below the 200-day MA of 193.03, indicating a bearish trend. The MACD of -2.41 indicates Positive momentum. The RSI at 31.17 is Neutral, neither overbought nor oversold. The STOCH value of 15.34 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:GSFC.

Gujarat State Fertilizers & Chemicals Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GNFC	70 Outperform	₹64.82B	10.73	―	3.68%	-7.53%	42.74%
GSFC	68 Neutral	₹65.69B	9.72	―	2.80%	15.25%	26.49%
PUNJABCHEM	64 Neutral	₹13.79B	24.16	―	0.24%	10.70%	32.65%
RCF	62 Neutral	₹66.95B	22.33	―	0.93%	-3.19%	59.25%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
NFL	45 Neutral	₹35.92B	19.46	―	1.77%	-7.78%	-70.89%

Gujarat State Fertilizers & Chemicals Limited Corporate Events

GSFC Schedules Q3 FY 2025-26 Earnings Conference Call for February 10

Gujarat State Fertilizers & Chemicals Limited has announced the schedule for its conference call to discuss financial results for the third quarter of FY 2025-26, to be held on Tuesday, 10 February 2026 at 3:30 p.m. IST. Senior management, including the CFO and the Executive Director for Agri Business, will address stakeholders on the company’s Q3 performance, underscoring GSFC’s ongoing engagement with investors and analysts and providing a forum for detailed discussion of its quarterly financial and operational progress.

India Ratings Reaffirms GSFC’s IND AA+ / A1+ Credit Ratings

India Ratings and Research has reaffirmed Gujarat State Fertilizers & Chemicals Limited’s strong credit profile, maintaining its long-term bank loan facilities rating at IND AA+ with a Stable outlook and its short-term bank and debt instruments at IND A1+. The confirmation of these ratings on sizeable bank facilities and short-term borrowings underscores GSFC’s solid financial position and creditworthiness, which should help the company retain favorable access to bank funding and capital markets, supporting its ongoing operations and growth plans in the fertilizers and chemicals space.

GSFC Closes Trading Window Ahead of December-Quarter Results

Gujarat State Fertilizers & Chemicals Limited has announced that its trading window for dealing in the company’s securities will be closed from 31 December 2025 until 48 hours after the declaration of its unaudited financial results for the quarter ending 31 December 2025, in line with SEBI (Prohibition of Insider Trading) Regulations, 2015 and the company’s internal code of conduct. The company has informed exchanges and designated persons of this restriction, with the date of the board meeting to approve the quarterly results to be communicated in due course, underscoring its adherence to regulatory norms on insider trading and disclosure governance.