How you guys value it ?
In latest concall they guided for 600 crore sales.
Current Mcap is around 500 crores.
Management emphasize on maintaining quality distributors, working capital cycle where they went wrong in past years as per them.
Seems going in positive direction as per latest concall.

Excellent sets of no. by Ghcl. Heard concall of Ghcl. My takeaway from concall are:

1. With the appreciation of dollar against rupees, import of soda ash come down from 23% to 13%. Kindly note that India is net importer of soda ash. Soda ash is now more costlier to import from foreign countries. Thus rupees dollar equation will further lead to robust demand of Soda ash in India.
2. Huge demand of solar glass and flat glass due to green energy is also maintaining robust demand of soda ash.
3. Lithium ion battery in which soda ash is used will be next driver of demand growth as per management.
4. NTPC has again started experimenting the use of sodash in flue gas treatment which can open new Avenue of soda ash in next leg of growth.
   As per management, robust demand is likely to continue for next 2 years as no capacity is coming in that time. After 2 years some capacity will come in Mongolia that can eventually get absorb with the growing demand of soda ash.
   Disclaimer: Imo I don’t see anything bad in results. Infact it’s superb fantastic results.Future outlook looks very positive.Demerger is on track of textile division. FII has increased its stake.
   My views can be biased. Invested and holding from 166 levels. Let’s see how future unfolds.
   https://ghcl.co.in/wp-content/uploads/2022/07/Quarterly_Results_2022-23_EMK0320220728142425.mp3

I believe there is an overestimation on their part here. IIFL Wealth on FY22 PAT is valued at 25 PE. On that basis, EWM should be valued at around 6000 crs with their FY22 PAT= 241 Cr. That is quite farfetched from 10000 Crs.

Verdict in favour of GGEL (a former subsidiary of GPIL) wrt to appeal made for compensation for insufficient Direct Normal Irradiance. The majority of the compensation (along with liquidation damages of 14 cr reimbursement) will accrue to GPIL.

ICRA credit rating - 28 July 2022

Highlights:

1. OPM and NPM expanded to 3.0% and 2.1% respectively in FY2022 (from 2.5% and 1.4% in FY2021) due to improved product mix, and strong IT demand amidst tight supplies.
2. The company’s gearing and Total debt/Newt worth ratio remained strong at 0.1x and 2.0x respectively due to low working capital debt utilization. Adjusted for cash reserves, the net TOL/TNW was ~1.4x.
3. The well-established relationships with vendors aid REDIL towards favourable credit periods, which reduces its working capital intensity. Further, comprehensive contracts with vendors de-risk REDIL from any risks of product and technology-related obsolescence.

https://www.icra.in/Rationale/ShowRationaleReport/?Id=113537