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

• Market Cap: ₹62.16B
• Dividend Yield: 2.8%
• Average Volume (3M): 54.02K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 1.18
• 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: ₹170.00 ▼(-7.18% 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

Very low financial leverage

Extremely low leverage and a high equity ratio provide durable financial flexibility, reducing default risk and enabling the company to fund maintenance, turnaround capex or absorb commodity shocks without aggressive refinancing. This supports long-term operational continuity and strategic optionality.

Healthy gross margins and steady revenue

Sustained gross margins plus consistent revenue growth indicate structural cost management and stable demand for core products. This profitability base supports reinvestment in plants, product quality, and distribution, underpinning medium-term cash generation potential if cost pressures remain controlled.

Diversified fertilizer and chemicals business

A two-pronged revenue model (agricultural fertilizers and industrial chemicals) plus an established distribution network provides durable demand diversification. Agricultural staples and chemical inputs reduce single-market dependency and help stabilize volumes across cycles and end-market shifts.

Negative Factors

Weak free cash flow conversion

Persistent negative free cash flow and low operating-cash-to-income conversion signal structural difficulty turning accounting profits into discretionary cash. That constrains capacity for organic capex, dividend stability or deleveraging, and may force reliance on external financing during investment cycles.

Margin volatility history

Historical swings in gross profit, including a prior negative period, highlight sensitivity to feedstock/energy costs, product mix or pricing regulations. This volatility makes long-term margin forecasting less reliable and raises execution risk for sustained profitability improvements.

Modest returns on capital

Relatively low ROE and modest EBIT margins point to limited capital efficiency versus peers. Over time, this can constrain shareholder returns and reduce room for investment without diluting returns, making high-return growth initiatives harder to justify absent margin expansion or scale gains.

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 primarily makes money by manufacturing and selling (1) fertilizers and (2) industrial chemicals, generating revenue through product sales to agricultural and industrial customers. A major revenue stream comes from nitrogenous fertilizers such as urea and ammonium sulphate sold through dealer/distributor networks and institutional channels; for urea, realized income can include government-determined pricing and subsidy receipts as applicable under India’s fertilizer policy (exact mechanism and contribution by period: null). A second key revenue stream comes from industrial chemicals produced and sold to other manufacturers and industrial end-users, where earnings depend on sales volumes and market-linked pricing for chemical products. The company’s profitability is influenced by input costs (notably energy and feedstocks), plant utilization, product mix between fertilizers and chemicals, and regulatory factors affecting fertilizer pricing/subsidy realization. Significant partnerships, if any, and their revenue contribution: null.

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	101.08B	95.34B	56.14B	55.45B	90.85B	76.34B
Gross Profit	34.45B	34.39B	-3.73B	-15.43B	-17.19B	20.34B
EBITDA	10.71B	9.47B	8.93B	17.40B	15.05B	7.57B
Net Income	6.68B	5.91B	5.64B	12.66B	8.99B	4.50B
Balance Sheet
Total Assets	147.69B	143.69B	150.51B	139.09B	141.25B	111.64B
Cash, Cash Equivalents and Short-Term Investments	15.64B	19.87B	23.00B	14.33B	16.51B	11.12B
Total Debt	13.90M	17.60M	51.09M	23.90M	54.98M	367.67M
Total Liabilities	22.93B	22.20B	23.22B	18.68B	23.51B	19.21B
Stockholders Equity	124.65B	121.38B	127.27B	120.40B	117.72B	92.40B
Cash Flow
Free Cash Flow	2.23B	-2.96B	-5.08B	7.82B	1.42B	16.94B
Operating Cash Flow	4.51B	834.80M	-2.68B	9.24B	2.37B	17.83B
Investing Cash Flow	-121.30M	-1.72B	1.06B	-393.66M	-181.38M	-227.80M
Financing Cash Flow	-2.04B	-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: Neutral

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 166.37, above the 50-day MA of 173.34, and below the 200-day MA of 191.22, indicating a bearish trend. The MACD of -5.07 indicates Positive momentum. The RSI at 35.61 is Neutral, neither overbought nor oversold. The STOCH value of 43.59 is Neutral, 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	₹62.58B	12.10	―	3.68%	-7.53%	42.74%
GSFC	68 Neutral	₹62.16B	11.49	―	2.80%	15.25%	26.49%
PUNJABCHEM	64 Neutral	₹12.80B	26.88	―	0.24%	10.70%	32.65%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
RCF	60 Neutral	₹66.86B	24.87	―	0.93%	-3.19%	59.25%
NFL	45 Neutral	₹34.97B	8.30	―	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.