Gujarat Alkali

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  #1  
Old 25th April 2008, 04:07 PM
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alatul32 is on a distinguished road
Arrow Gujarat Alkali



Pl.tell me more about Gujarat Alkali's performance? What will be the value after six and 12months. Is it is advisable to buy at this level? Pl. update me.
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  #2  
Old 26th April 2008, 01:10 PM
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Smile Re: Gujarat Alkali

Gujarat alakalies and chemicals limited(GACL) is a govt. of Gujarat promoted compnay.
It is the largest producer of caustic soda in India with the capacity of around 1100 Tones per day.
Their capacity utilization is reaching towards almost 100% while the industry standard remains around 70%.
It exports it's product to US,europe,M east,f east,africa,china and south Asian markets.

As power constitutes about 70% of it's cost of production,It has promoted promoted GIPCL(gujarat industrial power company ltd.) with Gujarat electricity board and other entities.
Being a promoter it gets low cost electricity.(But on the flip side GIPCL is a gas based power station and its viability depends on supply of gas.)


Recently Gujarat Alkalies & Chemicals (GACL) has signed an agreement with Dow Europe GmbH to set up a joint venture company for manufacturing 200,000 TPA of chlorinated organics at Dahej, with an estimated project cost of Rs 6 billion.

But on the flip side GIPCL is a gas based power station and its viability depends on supply of gas.
caustic soda is used mainly in paper,chemical,texttile and detergent industries.

It is @189 trading at 4.11 times its TTM earnings which is quite modest.
Its 52 week high was 273

It has got growth potential and with investment horizon of 5-6 quarters, this is a good bet.
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