Company was incorporated on 15th February 1962, in Gujarat. The Company manufacture chemical fertilisers, petrochemicals and other allied products such as urea, ammonium sulphate, diammonium phosphate, ammonia, sulphuric acid, caprolactam, argon gas, etc., and nylon-chips and melamine. First phase of plants consisting of ammonia, sulphuric acid, phosphoric acid, urea, ammonium sulphate and diammonium phosphate units were commissioned in 1967. The Company also has its own development and research department.

The Caprolactam facility plant was commissioned on 25th March 1974. Later, Company completed and put into operation a debottlenecking program with a view to increase the production of phosphoric acid. In 1987, Company's multipurpose fertiliser pilot plant to be set up in collaboration with International Fertilizer Development Center (IFCD), USA, received Government approval in the year. The pilot plant for xylitol from bagasse was commissioned. Company in collaboration with ATIRA, Ahmedabad developed an acrylic based synthetic thickener.

Products & services:

Gujarat State Fertiliser Corporation Ltd. (GSFC), a large player in fertilisers and chemicals, has a major presence in di-ammonium phosphate (DAP) and caprolactum, urea and ammonium sulphate, a co-product of caprolactum. It is the largest producer of caprolactum and also has one of the largest capacities in DAP. The Company manufacture chemical fertiliser, petrochemicals and other allied products such as urea, ammonium sulphate, diammonium phosphate, ammonia, sulphuric acid, caprolactam, argon gas, etc., and nylon-chips and melamine.

The Company manufacture chemical fertilisers, petrochemicals and other allied products such as urea, ammonium sulphate, diammonium phosphate, ammonia, sulphuric acid, caprolactam, argon gas, etc., and nylon-chips and melamine. GSFC holds significant stakes in Gujarat Narmada Valley Fertilisers and Gujarat Industrial Power Corporation (GIPC) and is entitled to 37.5% of its power generation. Company has decided to enhance production facility of MEK Oxime by 6500 MTPY at an estimated cost of Rs 75 million to be invested in phase wise manner. Finance for the same will be made available through internal sources of the company.

Valuation:

At current market price, stock is trading at attractive valuation of 4.45 P/E multiple for its FY2010 estimated earnings. We recommend investors to "BUY" "GSFC" with medium to long- term investment prospective.