Buy Gujarat State Fertilizer & Chemicals, target price Rs 158 : ICICI Direct

ICICI Direct has buy call on Gujarat State Fertilizer & Chemicals with a target price of Rs 158. The current market price of Gujarat State Fertilizer & Chemicals Ltd. is Rs 143. ICICI Direct recommended to keep stop loss at Rs 139. The time frame when the stock will reach its suggested target price is 7 days.

Gujarat State Fertilizer & Chemicals, incorporated in the year 1962, is a Mid Cap company (having a market cap of Rs 5730.11 Crore) operating in Fertilisers sector.

Gujarat State Fertilizer & Chemicals key Products/Revenue Segments include Fertilizers and Traded Goods for the year ending 31-Mar-2022.

Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 2560.16 Crore, down -16.02 % from last quarter Total Income of Rs 3048.67 Crore and down -1.38 % from last year same quarter Total Income of Rs 2596.10 Crore. Company has reported net profit after tax of Rs 285.27 Crore in latest quarter.

The company’s top management includes Mr.Pankaj Kumar, Mrs.Mamta Verma, Mr.V D Nanavaty, Mr.Jagdish Prasad Gupta, Dr.Sudhir Kumar Jain, Mrs.Gauri Kumar, Mr.Tapan Ray, Prof.Ravindra Dholakia, Mr.Mukesh Puri, Mr.B B Bhayani. Company has T R Chadha & Co. LLP as its auditors. As on 30-09-2022, the company has a total of 40 Crore shares outstanding.

Investment Rationale
The fertilizer stocks has been one of the key outperformers in the last one month and is seen constantly outperforming the broader market. Within the Fertilizer stocks we remain constructive on GSFC which the brokerage expects to outperform as it has generated a breakout above the falling supply line joining the highs of Apr22 (|198) and Aug22(|171), signalling resumption of up move and offers fresh entry opportunity.

Promoter/FII Holdings
Promoters held 37.84 per cent stake in the company as of 30-Sep-2022, while FIIs owned 26.38 per cent, DIIs 4.09 per cent.