Gujarat Alkalies & Chemicals Ltd. (GUJALKALI) AI Stock Analysis

• Market Cap: ₹30.44B
• Dividend Yield: 3.11%
• Average Volume (3M): 3.71K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.04
• Revenue Growth: 10.35%
• EPS Growth: N/A
• Country: IN
• Employees: 1,365
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): -2.72
• Shares Outstanding: 73,436,930
• 10 Day Avg. Volume: 2,205
• 30 Day Avg. Volume: 3,713
• PEG Ratio: 0.88
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 1.02
• P/FCF Ratio: 74.51
• 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: 59 Neutral
• Price Target: ₹433.00 ▼(-14.30% Downside)
• Action: Reiterated Date: 10/30/25
• Date: Action: Reiterated 10/30/25

Gujarat Alkalies & Chemicals Ltd. has a solid financial base with potential for improvement in profitability. However, technical indicators present a mixed outlook, and the negative P/E ratio is a significant concern. The dividend yield offers some investor appeal, but overall, the stock faces challenges in valuation and consistent profitability.

Positive Factors

Conservative capital structure

A healthy debt-to-equity profile and high equity ratio provide structural financial resilience. This lowers default and refinancing risk, preserves borrowing capacity for capex or efficiency projects, and supports long-term investment without excessive leverage pressure.

Improving operating cash generation

Recovery in operating cash flow indicates core operations are generating real cash, enhancing the firm's ability to fund maintenance capex, servicing and reinvestment. Durable cash generation improves flexibility for strategic projects and reduces reliance on external funding.

Essential, diversified product mix

Supplying fundamental chlor-alkali products to varied end markets (textiles, alumina, detergents, water treatment) creates structural demand resilience. Co-products like chlorine/hydrogen allow internal integration or alternate sales channels, supporting steady long-term revenue streams.

Negative Factors

Inconsistent profitability

Recurring swings to negative net income indicate earnings vulnerability. This hurts retained earnings, impairs ROE, limits capacity for sustained dividends or growth investments, and signals sensitivity to input costs and product pricing across commodity cycles.

High energy and input cost exposure

Electrolytic production is energy intensive; sustained increases or volatility in power costs directly compress margins. Long-term competitiveness requires secured low-cost power, efficiency investments, or passthrough pricing—each demanding capital or contractual solutions.

Free cash flow and margin volatility

Volatile free cash flow reduces predictability for capex, deleveraging, and shareholder returns. Coupled with fluctuating gross and EBITDA margins, this structural variability complicates planning, increases funding cost risk, and limits ability to pursue multi-year strategic initiatives.

Gujarat Alkalies & Chemicals Ltd. Business Overview & Revenue Model

Company Description

Gujarat Alkalies and Chemicals Limited engages in the production and sale of various chemical products in India. It provides caustic soda lye, soda flake, and soda prill, liquid chlorine, hydrochloric acid, and compressed hydrogen gas; anhydrous aluminum chloride, chlorinated paraffin, benzyl alcohol, benzaldehyde, and benzyl chloride; and Chloromethane. The company also offers caustic potash lye and flakes, and potassium carbonate; methylene chloride, chloroform, and carbon tetrachloride; and phosphoric acid and chlorinated paraffin wax. In addition, it provides hydrogen peroxide; and bleachwin, scalewin, poly aluminum chloride, biowin, and stable bleaching powder. The company's products are used in various industries, such as textile, pulp and paper, soap and detergent, alumina, water treatment, petroleum, plastic, fertilizer, pharmaceutical, agrochemical, plant protection, dyes and intermediate, refrigeration gas, epoxy, etc. It also exports its products to the United States, Europe, Australia, Africa, the Middle East, China, Russia, Turkey, South Asia, etc. Gujarat Alkalies and Chemicals Limited was incorporated in 1973 and is based in Vadodara, India.

How the Company Makes Money

GUJALKALI primarily makes money by manufacturing commodity and industrial chemicals and selling them to business customers under domestic and export sales contracts. The largest revenue driver is typically the chlor-alkali chain: (1) Caustic soda sales: Produced via electrolysis and sold as a key feedstock to industries such as alumina, textiles, pulp & paper, soaps/detergents, and general chemical processing. (2) Chlorine monetization: Chlorine, co-produced with caustic soda, is sold directly where marketable and/or used internally to make downstream chlorine-derived products; effectively, the company’s earnings depend on balancing caustic soda and chlorine placement/pricing in the market. (3) Hydrogen utilization/sales: Hydrogen generated in the process may be sold or used as a fuel/feedstock depending on plant integration and demand (specific split not available: null). In addition to the chlor-alkali stream, the company earns revenue from sales of other inorganic/industrial chemicals in its portfolio (specific product-level revenue breakdown not available: null). Profitability is influenced by (a) realized selling prices for caustic soda and chlorine-linked products, (b) operating rates and demand from end-user industries, and (c) cost of key inputs—especially power/electricity (electrolysis is energy-intensive) and salt/brine—along with logistics. Information on significant partnerships, long-term offtake arrangements, or named strategic customers is not available: null.

Gujarat Alkalies & Chemicals Ltd. Financial Statement Overview

Summary

Gujarat Alkalies & Chemicals Ltd. shows a solid financial foundation with strengths in equity financing and potential for profitability improvement. Revenue and cash flow recovery are positive signs, yet challenges remain in achieving consistent profitability.

Income Statement

Gujarat Alkalies & Chemicals Ltd. has demonstrated fluctuating revenue growth, with a recent decline followed by a recovery. The gross profit margin is relatively strong, although net profit margins have been inconsistent, impacted by negative net income in the latest year. EBIT and EBITDA margins show variability but have potential for improvement given past performance.

Balance Sheet

The company maintains a healthy debt-to-equity ratio, indicating a conservative approach to leveraging. Return on equity has been affected by recent net losses, although historically it has shown strength. The equity ratio suggests strong capital structure with a high proportion of equity financing.

Cash Flow

Cash flows show improvement in operating cash flow and free cash flow in the latest year, recovering from previous deficits. The operating cash flow to net income ratio indicates a robust cash-generating ability, though free cash flow volatility poses a risk to financial flexibility.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	42.93B	40.73B	37.79B	45.16B	36.94B	23.52B
Gross Profit	12.96B	12.36B	6.18B	30.07B	22.84B	13.05B
EBITDA	4.45B	3.60B	1.19B	11.57B	10.33B	4.26B
Net Income	1.50M	-651.20M	-2.37B	4.10B	5.60B	1.66B
Balance Sheet
Total Assets	82.09B	83.43B	80.23B	83.35B	79.77B	71.54B
Cash, Cash Equivalents and Short-Term Investments	3.91B	1.53B	1.79B	5.02B	3.20B	4.07B
Total Debt	6.37B	5.61B	5.44B	5.97B	5.94B	4.98B
Total Liabilities	26.39B	23.17B	19.48B	21.96B	20.78B	17.80B
Stockholders Equity	55.70B	60.26B	60.76B	61.39B	58.99B	53.75B
Cash Flow
Free Cash Flow	1.61B	557.40M	-1.65B	2.77B	-1.74B	-3.73B
Operating Cash Flow	2.98B	3.81B	666.16M	9.60B	7.35B	4.21B
Investing Cash Flow	-1.18B	-2.64B	-900.00M	-6.61B	-8.05B	-3.32B
Financing Cash Flow	-559.70M	-1.45B	-2.77B	-1.40B	117.44M	2.26B

Gujarat Alkalies & Chemicals Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 505.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:GUJALKALI, the sentiment is Negative. The current price of 505.25 is above the 20-day moving average (MA) of 457.86, above the 50-day MA of 467.03, and below the 200-day MA of 534.07, indicating a bearish trend. The MACD of -13.62 indicates Positive momentum. The RSI at 29.70 is Positive, neither overbought nor oversold. The STOCH value of 10.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:GUJALKALI.

Gujarat Alkalies & Chemicals Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GNFC	70 Outperform	₹60.64B	12.10	―	3.68%	-7.53%	42.74%
GHCL	66 Neutral	₹41.38B	12.54	―	2.10%	-5.14%	7.25%
INDIAGLYCO	65 Neutral	₹57.28B	23.54	―	0.47%	5.61%	33.63%
DEEPAKFERT	64 Neutral	₹114.90B	28.71	―	0.80%	21.68%	45.18%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
GUJALKALI	59 Neutral	₹30.44B	-46.40	―	3.11%	10.35%	―
RAIN	49 Neutral	₹38.16B	115.03	―	1.60%	3.30%	91.30%

Gujarat Alkalies & Chemicals Ltd. Corporate Events

Gujarat Alkalies and Chemicals Schedules Mumbai Investor Meet on March 23

Gujarat Alkalies and Chemicals Ltd. has announced that it will participate in an investor and analyst meeting organized by Antique Stock Broking Ltd. in Mumbai on March 23, 2026, to be held in person through both group and one-on-one interactions. During this engagement, the company plans to share only its existing corporate and earnings presentations and other information already available in the public domain, underscoring a focus on transparent communication with shareholders and institutional stakeholders without disclosing any new unpublished data.

The scheduled investor meet reflects the company’s ongoing efforts to maintain active dialogue with the investment community and enhance visibility in capital markets. Such interactions can help investors better understand Gujarat Alkalies and Chemicals’ business performance and strategy, potentially supporting market confidence and more informed valuation of the stock.

GACL Publishes Q3 FY2025 Unaudited Results, Adjusts Catalyst Valuation

Gujarat Alkalies and Chemicals Ltd has published in leading national and regional newspapers the extracts of its standalone and consolidated unaudited financial results for the third quarter and nine months ended 31 December 2025, in line with SEBI’s disclosure norms. The results, which have undergone a limited review by statutory auditors and were approved by the board on 6 February 2026, reflect an accounting correction in the valuation of spent palladium catalyst inventory that significantly increased its carrying value and profits for the period, while the company also noted that the impact of India’s new labour codes on its employee benefit liabilities is currently assessed as immaterial, with ongoing monitoring for future implications.

Gujarat Alkalies & Chemicals Appoints IT & Digital Transformation Head

Gujarat Alkalies and Chemicals Limited has appointed Maulik Gandhi as General Manager (IT & Digital Transformation) effective 2 January 2026, strengthening its senior management team in line with regulatory disclosure requirements. Gandhi, a computer science engineer with a management degree from IIM Ahmedabad and over 25 years of experience in enterprise IT and business transformation across areas such as B2B IT, sales planning, sustainability and energy management, is expected to spearhead the company’s digital and business transformation initiatives, supporting operational efficiency and reinforcing its strategic push toward technology-led, green-focused growth.

Gujarat Alkalies & Chemicals Closes Trading Window Ahead of Q3 Results

Gujarat Alkalies & Chemicals Ltd. has notified the stock exchanges that its trading window for dealing in the company’s equity shares will be closed for all designated persons from 1 January 2026, in line with SEBI’s Prohibition of Insider Trading Regulations, 2015. The window will reopen 48 hours after the company announces its unaudited financial results for the quarter ending 31 December 2025, underscoring the company’s adherence to insider trading norms and signaling that third-quarter financial disclosures are forthcoming, a key point of attention for investors and other market participants.