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

• Market Cap: ₹33.48B
• Dividend Yield: 3.11%
• Average Volume (3M): 3.71K
• Price to Earnings (P/E): 22350.5
• Beta (1Y): 1.08
• Revenue Growth: 10.35%
• EPS Growth: N/A
• Country: IN
• Employees: 1,365
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 2.23
• 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: ₹476.00 ▼(-5.79% Downside)

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

Diversified chlor‑alkali product portfolio

The company’s core chlor‑alkali suite (caustic soda, chlorine, hydrogen) supplies many end markets—textiles, soaps, pulp & paper, water treatment—providing durable demand diversification and multiple revenue streams from co‑products that smooth cycles in any single downstream industry.

Conservative capital structure

A healthy debt/equity profile and high equity ratio indicate financial conservatism, supporting resilience through industry cycles. This structural strength enables funding for maintenance capital, efficiency projects or selective expansion without excessive refinancing risk over the next several quarters.

Improving operating cash generation

Recovery in operating and free cash flow demonstrates the business’s ability to convert revenue into cash. Sustainable cash generation supports reinvestment, working capital needs and discretionary actions (capex, dividends, deleveraging), improving long‑term financial flexibility.

Negative Factors

Inconsistent profitability and recent net loss

Recent negative net income and volatile margins reduce retained earnings and constrain capacity to fund growth internally. Persistent profitability inconsistency undermines return metrics, dividend reliability and investor confidence unless operating leverage or cost structure is stabilized.

Revenue and margin volatility

Cyclical end‑market exposure and swingy top‑line trends make planning and capital allocation harder. Variable revenues increase working capital swings and capex timing risk, elevating execution risk for multi‑quarter projects and complicating sustainable margin improvement.

High energy/input cost exposure

Electrolytic production is energy intensive, leaving margins sensitive to power and raw material prices. Without long‑term power contracts or efficiency investments, earnings can be structurally pressured by utility cost inflation and fuel volatility, affecting medium‑term competitiveness.

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 generates revenue primarily through the production and sale of its core products, including caustic soda, chlorine, and other chemical derivatives. The company operates on a business model that emphasizes both domestic and export sales, catering to a diverse range of industrial clients. Key revenue streams include bulk sales to large manufacturers and smaller orders to various industries. Additionally, GUJALKALI benefits from strategic partnerships with other companies in the chemical sector, enhancing its distribution network and market reach. The company also explores opportunities in value-added products, which contribute to its overall earnings. Market dynamics such as pricing, demand fluctuations, and regulatory factors in the chemical industry play a significant role in shaping its revenue performance.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	42.01B	40.73B	37.79B	45.16B	36.94B	23.52B
Gross Profit	16.19B	12.36B	6.18B	30.07B	22.84B	13.05B
EBITDA	4.07B	3.60B	1.19B	11.57B	10.33B	4.26B
Net Income	-343.70M	-651.20M	-2.37B	4.10B	5.60B	1.66B
Balance Sheet
Total Assets	0.00	83.43B	80.23B	83.35B	79.77B	71.54B
Cash, Cash Equivalents and Short-Term Investments	1.53B	1.53B	1.79B	5.02B	3.20B	4.07B
Total Debt	0.00	5.61B	5.44B	5.97B	5.94B	4.98B
Total Liabilities	-60.26B	23.17B	19.48B	21.96B	20.78B	17.80B
Stockholders Equity	60.26B	60.26B	60.76B	61.39B	58.99B	53.75B
Cash Flow
Free Cash Flow	0.00	557.40M	-1.65B	2.77B	-1.74B	-3.73B
Operating Cash Flow	0.00	3.81B	666.16M	9.60B	7.35B	4.21B
Investing Cash Flow	0.00	-2.64B	-900.00M	-6.61B	-8.05B	-3.32B
Financing Cash Flow	0.00	-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: Neutral
• STOCH: Neutral

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 471.32, above the 50-day MA of 496.65, and below the 200-day MA of 555.36, indicating a bearish trend. The MACD of -14.44 indicates Positive momentum. The RSI at 34.73 is Neutral, neither overbought nor oversold. The STOCH value of 41.40 is Neutral, 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	₹68.54B	10.78	―	3.68%	-7.53%	42.74%
GHCL	66 Neutral	₹51.00B	10.00	―	2.10%	-5.14%	7.25%
INDIAGLYCO	65 Neutral	₹58.82B	20.97	―	0.47%	5.61%	33.63%
DEEPAKFERT	62 Neutral	₹133.19B	15.22	―	0.80%	21.68%	45.18%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
GUJALKALI	59 Neutral	₹33.48B	22,350.49	―	3.11%	10.35%	―
RAIN	54 Neutral	₹52.15B	-39.39	―	1.60%	3.30%	91.30%

Gujarat Alkalies & Chemicals Ltd. Corporate Events

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.

Gujarat Alkalies Reports Revenue Growth and Operational Efficiency Gains

Gujarat Alkalies and Chemicals Limited reported a 10% increase in sales revenue for the second quarter of the financial year 2025-26, reaching Rs.1063 Crores, driven by higher capacity utilization and better sales realization. The company also achieved a 7% increase in EBITDA and has been actively working on improving operational efficiencies and reducing energy costs through increased use of renewable power. Additionally, its subsidiary, GACL-NALCO Alkalies & Chemicals Private Limited, reported its first profit before tax.

Gujarat Alkalies & Chemicals Reports Q2 2025 Financial Results

Gujarat Alkalies and Chemicals Limited has released its unaudited financial results for the second quarter and half-year ending September 30, 2025. The company reported a net profit before tax, with notable provisions made for goods damaged due to a fire at a contract manufacturer. The results include contributions from a 60% equity joint venture, GACL-NALCO Alkalies & Chemicals Pvt. Ltd. The board declared a dividend, and employee expenses included significant pay revisions.