Gujarat Alkalies and Chemicals Ltd was incorporated in March 1973. It was financed by Gujarat Industrial Investment Corporation Limited, a wholly owned corporation of the Government of Gujarat. The improvement in the working of the  company strongly depends on the higher demand for chlor-alkali industry products and revival in both international and domestic caustic soda prices. The management of the company is optimistic that things will turn out in favour of the company.

Products & services:

The main activities of Gujarat Alkalies and Chemicals are developing, manufacturing and distributing caustic soda lye, chloromethanes, caustic flakes, chlorine gas, sodium cyanide, liquid chlorine, hydrochloric acid, hydrogen gas, sodium ferrocyanide and related chemicals. Gujarat Alkalies and Chemicals have two plant sites. One is situated at 15 km North of Vadodara and the other is located at Dahej, in Bharuch district. The company commissioned this 90MW captive combined cycle co-generation power plant to reduce its power costs and achieve self- reliance in its power requirements. It embarked upon a diversification plan in April 1981 to produce 2000 MTA of sodium cyanide. The company mainly exports to Australia, China, Japan, South Africa and Egypt. Its products under various categories are Caustic Soda Group, Sodium Group, Caustic Soda Flakes, Sodium Cyanide, Caustic Soda Lye, Sodium Ferro Cyanide, Caustic Soda Prills,Hydrogen Peroxide Group Sodium Hypo Chlorite, Hydrogen Peroxide, Liquid Chlorine, Bleachwin, Compressed Hydrogen Gas, Phosphoric Acid Group, Hydrochloric Acid, Phosphoric Acid, Caustic Potash Group, Calcium Chloride Flakes, Caustic Potash Flakes. Calcium Chloride Powder, Caustic Potash Lye, Others, Potassium Carbonate, Dilute Sulphuric Acid, Chloromethane Group, Scalewin, Methyle Chloride, Aluminum Chloride Anhydrous Methylene Chloride, Carbon Tetrachloride, Poly Aluminum Chloride, Chloroform.

Valuation:

At current market price, stock is trading at an attractive valuation of 4.78 P/E multiple of its FY2010 estimated earnings. We Recommend investors buy “GACL” for medium to long-term investment prospective.