Result Update: GUJARAT ALKALIES & CHEMICALS

GUJARAT ALKALIES & CHEMICALS LTD

	Sep-12	Sep-11	Change YoY
Revenue	481.74	420.35	14.60%
Other Income	10.79	8.04
Total Income	492.53	428.39
Expenditure	-368.64	-336.93
Interest	-2.63	-4.51	-41.69%
PBDT	121.26	86.95	39.46%
Depreciation	-34.96	-35.23
PBT	86.3	51.72	66.86%
Tax	-20.29	-14.66
Net Profit	66.01	37.06	78.12%
Equity	73.44	73.44
EPS	8.99	5.05	78.02%
CEPS	13.75	9.84
OPM %	25.72	21.76
NPM %	13.7	8.82

As expected the results of the company showed strength as the increased prices of the products lead to booming bottom line. The profits of the company grew 78% to Rs 66 cr leading to EPS of ~Rs 9 per share for the quarter.

This is one of the companies enjoying increased prices of caustic soda and protected by anti dumping duty and available at the PE of 4-5 for the forward year 2012-13.

Comparing it with the peers like TATA Chemicals, DCW Ltd or Aditya Birla Chemicals, this one is the cheapest of the lot.

Invest with a expectations of 50% returns in two years which seems highly likely in the given case.

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