Gulshan Polyols Ltd

Gulshan Polyols Ltd, with over 30 years of expertise, specializes in Ethanol/Bio-fuel, Grain, and Mineral-based products, and is expanding its operations, especially in the Indian bio-ethanol sector, under its commitment to sustainable growth themed “Expanding Potential”.

MCap: Rs 1,308
Sales (TTM): Rs 1,234 Cr
Sales:MCap 0.95 times
CMP: Rs 210
PE: 39.60 times
PB: 2.26 times
BV: Rs 92.80
EPS: 5.29
ROCE: 8.68%
ROE: 7.81%
Sales Growth 3 yrs CAGR: 23.90 %
Profit Growth 3 yrs CAGR: 28.20 %
Borrowings: Rs 358 Cr & Reserve and Capital : Rs 579 Cr.

Financial Performance:

Q2 FY23 income from operations was ₹277.38 crores, stable due to high capacity utilization and strong product demand.

Input costs increased by 13.2% YoY, mainly due to higher raw material and power costs.

EBITDA for the quarter was ₹20 crores (7.3%), net profit ₹9 crores with a PAT margin of 3.3%.

H1 FY23 revenue was ₹548 crores, up 6% YoY.

The company targets a sustainable margin of 10-12%.

Expansion Plans:

Grain Processing Segment:
Products: This segment includes sorbitol, maize starch, liquid glucose, fructose syrup, and other starch derivatives such as Malto Dextrine and Dextrose Monohydrate, along with agro-based animal feed.

Facilities and Capacities: The company has production facilities in Muzaffarnagar, Uttar Pradesh, and Bharuch, Gujarat. Muzaffarnagar specializes in producing maize starch (70,000 metric tons per annum) and fructose syrup (36,000 metric tons per annum), while the Bharuch facility focuses on sorbitol production (72,000 metric tons per annum).

Capacity Utilization and Expansion: The combined capacities in this segment are about 150,000 metric tons per annum. Currently operating at full capacity, the company plans a 20% capacity expansion to meet growing domestic and export demand.

Customer Base: The segment serves a strong customer base, including FMCG companies like Lever, Dabur, Asian Paint, and Patanjali. The products are also exported to over 35 countries. Starch, particularly, sees robust demand from the semi-craft paper industry, driven by e-commerce growth.

Ethanol and Distillery Segment:

Current Operations: The company operates a 60 KLPD grain-based ethanol plant and distillery in Chhindwara, Madhya Pradesh, running at 110% capacity utilization. This facility was set up in 2020.

Expansion Plans: As part of the government’s Ethanol Blended Petrol Program (EBPP), the company plans to enhance capacity from 60KLPD to 500 KLPD by Quarter 4 of the current financial year. Additionally, a new 250 KLPD grain-based ethanol plant is being set up in Goalpara, Assam, expected to be operational by FY25.

Mineral Processing Segment:

Products: This segment produces various grades of calcium carbonate, including precipitated and brown calcium carbonate.

Applications: The calcium carbonate products are primarily used in the paper and PVC industries.

Contribution: Though smaller compared to the other segments, this segment makes a significant contribution to the business.

CAPEX and Funding:

Spent INR 250 crore of a total INR 600 crore CAPEX, with INR 350 crore pending.

Ethanol expansion funded through term loans, QIP, and internal accruals.

Eligible for Production Linked Fiscal Assistance for Greenfield ethanol plants in Madhya Pradesh and Assam.

ISS approval from DFPD for bank funding reduces funding costs.

reasonable promoter holdings

these falls seem to rationalize the valuation part also.

Friends,
Have created a telegram group.
Interested ones can join
Link – Telegram: Join Group Chat

Hi, Can you please also share the relevant text from Chapter 87 based on which the department has claimed 28 % ?

Shalby Ltd –

Q3 FY 24 results and concall highlights –

Revenues – 220 vs 207 cr, up 6 pc
EBITDA – 47 vs 38 cr, up 23 pc ( margins @ 21.2 vs 18.5 pc )
PAT – 19 vs 15.5 cr, up 25 pc

Standalone Revenues @ 200 cr, EBITDA @ 47 cr, PAT @ 25 cr ( all grew at very healthy rates )

Net Cash ( minus debt ) on books @ 61 cr

Company’s portfolio / businesses –

10 Multi Speciality hospitals across West, Central and North India. A leader in Joint replacement in the represented market

60 OPD domestic clinics + 16 international OPD clinics ( mainly in Africa )

06 Franchisee hospitals

US based Knee and Hip implants manufacturing facility

Total bed capacity @ 2150 + beds, present across 13 cities in India

Q3 operational matrices –

ARPOB @ 37.3 vs 36.3 k
Occupancy rate @ 47 vs 43 pc
Surgery count @ 6746 vs 6782

Hospitals business segmental revenue percentages –

Anthroplasty – 43 pc
Critical care – 9 pc
Cariac – 9 pc
Onco – 10 pc
Ortho – 10 pc
Neuro – 5 pc
Nephro – 4 pc
Others – 11 pc

Hospitals business payor mix –

Self pay – 35 pc
Insurance – 41 pc
Govt – 24 pc

Implants business sales mix –

India – 57 pc
US – 43 pc

Implants business financials –

Revenues @ 21 cr, up 46 pc
EBITDA @ 20 lakh
No. of constructs sold @ 2630 ( 70 : 30 – Knee : Hip )

Company invested 102 cr to acquire 87 pc stake in Sanar International hospital Gurugram. Its current bed capacity is 130, expandable to 180. This hospital caters mostly to international clients ( 68 pc of its revenues )

Still have the vision to grow the implants business to 800 cr / yr kind of sales in 5 yrs

Sanar International is likely to do a 30-35 cr / Qtr kind of topline for next yr. Also, the ARPOBs here are much higher – in the range of 1 lakh. However, current occupancies are low @ around 25 pc. Currently making EBITDA losses

Aiming to do high single digit EBITDA margins from the implants business by end of next yr

Mumbai – is a Greenfield project ( Hospital ) that’s lined up by the company. May take 3-4 yrs to go live

Aiming for 20-22 pc growth in EBITDA for next FY without accounting for the new facilities and inorganic opportunities like the Sanar hospital

Seeing pickup in no of surgeries in Jan, Feb 24. Confident of doing better business in Q4 vs Q3
Disc: holding, biased, not SEBI registered