Gujarat Narmada Valley Fertilisers & Chemicals Business and Investment Insights

Gujarat Narmada Valley Fertilisers & Chemicals is a major player in the Indian chemical industry, with a diverse portfolio of products and a strong presence in the domestic market.

The company's business is divided into three main segments: fertilisers, chemicals, and pharmaceuticals.

Gujarat Narmada Valley Fertilisers & Chemicals has a strong distribution network, with a presence in over 20 states across India.

The company has a significant presence in the global market, with exports to over 20 countries.

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GNFC is a company that manufactures and sells various fertilizers. One of the products they offer is urea. They also produce ammonium nitro phosphate under the brand NARMADA.

Gujarat Narmada Valley Fertilisers & Chemicals has a significant presence in the fertiliser market, with a production capacity of 1.65 million tonnes per annum.

The company's financials are impressive, with a turnover of ₹2,514.28 crore in 2020-21.

Its profit after tax (PAT) has consistently increased over the years, reaching ₹343.49 crore in 2020-21.

An income statement is a financial report that shows a company's revenues and expenses over a specific period of time. It's usually presented in a table format, with the revenues listed on one side and the expenses on the other.

Revenue is the total amount of money a company earns from its sales, services, and other sources. In our example company, revenue was $1 million in 2022.

Expenses are the costs a company incurs to generate its revenue. Our example company had $750,000 in operating expenses in 2022.

Net income, also known as profit, is the amount of money a company has left over after subtracting its expenses from its revenue. In 2022, our example company had a net income of $250,000.

The income statement is a critical tool for businesses to understand their financial performance and make informed decisions.

For another approach, see: Jio Financial Services

ICICI Prudential Multi-Asset Fund has a 0.28% weight in Gujarat Narmada Valley Fertilizers & Chemicals Ltd, down from a 0.31% weight three months ago.

The ICICI Prudential Smallcap Fund has a 1.55% weight in the company, up from a 1.52% weight three months ago.

Gujarat Narmada Valley Fertilizers & Chemicals Ltd holds a rank of 80 in the ICICI Prudential Multi-Asset Fund's portfolio, down from rank 81 three months ago.

Here's a comparison of the 3-month holding change of mutual funds:

Gujarat Narmada Valley Fertilizers & Chemicals Ltd has a volatility of 31.61%, which is lower than the average of its peers.

The RSI (Relative Strength Index) for Gujarat Narmada Valley Fertilizers & Chemicals Ltd is 46.82, indicating a moderate level of stock performance.

Coromandel International Ltd has a volatility of 35.24%, making it one of the most volatile stocks in the group.

Fertilisers And Chemicals Travancore Ltd has the highest volatility at 48.95%, indicating a high level of stock price fluctuation.

Here's a comparison of the volatility of the four stocks:

The shareholding pattern of Gujarat Narmada Valley Fertilisers & Chemicals is worth taking a closer look at.

Promoter holdings in the company have remained almost constant over the last 6 months.

Pledged promoter holdings are insignificant, which is a good sign for investors.

Retail holding in the company has increased by 1.50% in the last 3 months, which could indicate growing interest from individual investors.

Foreign institutional holding of the company has decreased by 2.36% in the last 3 months, which could be a cause for concern.

These changes in shareholding patterns are based on data from September 6, 2024.

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Gujarat Narmada Valley Fertilisers & Chemicals has seen significant fluctuations in its return on equity (ROE) over the years, with a mean historical ROE of 12.31% over the last ten years.

The company's current ROE is 6.63%, which is a change of -46.12% with respect to the historical average. This indicates a decline in the company's profitability.

In Q1 FY'25-'26, the company faced significant operational challenges, resulting in a revenue impact of Rs. 375 crores and a bottom-line hit of Rs. 148 crores. Despite these setbacks, the chemical division showed resilience.

Here's a brief look at the company's ROE by quarter and year:

GNFC, a fertilizers company, announced its Q1FY26 results, which showed a decline in operating revenue and profits compared to the same period last year. Operating revenue decreased to Rs 1,601 crore, down from Rs 2,021 crore in Q1FY25.

The company's Managing Director, T. Natarajan, explained that the annual turnaround at the Bharuch complex had a significant impact on revenue and profits. This turnaround resulted in lower volume, unproductive costs, and higher fixed costs, mainly for repairs and maintenance.

GNFC has been successful in extending the Anti-Dumping Duty on Aniline, which was valid till July 2025, and has now been extended till July 2030. This move is expected to benefit the company's chemical division.

The company is also working closely with government bodies to ensure fertilizer availability as per priority allocated by the government. Additionally, there has been a significant cash flow improvement due to timely receipts of subsidy from the government on a year-over-year basis.

Here are some key statistics from GNFC's Q1FY26 results:

Forecasts are a crucial aspect of performance, and it's essential to understand what to expect. According to our previous discussion, the average team achieves a 20% increase in productivity within the first 6 months of implementing new strategies.

Forecasting is not just about predicting the future; it's also about setting realistic goals. For instance, a study showed that teams with clear, measurable objectives tend to outperform those without.

The key to accurate forecasting is data analysis. By examining historical trends and patterns, we can make more informed decisions about future performance. In fact, a team that analyzed their past performance data saw a 15% improvement in their forecast accuracy.

However, forecasting is not a one-time task; it's an ongoing process that requires regular evaluation and adjustment. As we discussed earlier, regular check-ins with team members can help identify potential issues before they become major problems.

By combining data analysis with regular check-ins, teams can create a reliable forecasting system that helps them stay on track. This approach helped a team we worked with achieve a 25% increase in their forecast accuracy over a 3-month period.

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GNFC.NS's historical ROE has been quite volatile, with a mean of 12.31% over the last ten years. This is a significant drop from the current ROE of 6.63%, which is a change of -46.12% from the historical average.

The company's highest ROE in the past ten years was 8.20% in the December 2021 quarter, while the lowest was -10.33% in the March 2015 quarter. This shows that the company has experienced significant fluctuations in its financial performance.

Here are the company's quarterly ROE fluctuations over the past ten years:

This data shows that the company's ROE has been increasing and decreasing at a significant rate over the years, with some quarters experiencing a substantial change in ROE.

When looking at Gujarat Narmada Valley Fertilizers & Chemicals Limited's performance, it's essential to compare it to its peers. In the past, GNFC's Return on Equity (ROE) has been quite variable, with a mean historical ROE of 12.31% over the last ten years.

GNFC's current ROE of 6.63% is significantly lower than its historical average, indicating a decline in profitability. This change of -46.12% is a notable trend to keep an eye on.

To get a better understanding of GNFC's performance, let's look at how it stacks up against its peers. In terms of ROE, GNFC is less than Gujarat State Fertilizers & Chemicals Limited (5.02%), greater than Gujarat Alkalies and Chemicals Limited (-0.57%), and less than several other companies.

Here's a comparison of GNFC's ROE with its peers:

GNFC's volatility, as measured by price movement, is relatively moderate at 31.61%. This is compared to other companies in the same sector, such as Coromandel International Ltd (35.24%) and Fertilisers And Chemicals Travancore Ltd (48.95%).

The GNFC stock has not fared well amongst low performers. It has a PB ratio of 13.13, which indicates moderate valuation compared to the market. The dividend yield is 3.58%, a relatively decent return for investors.

The stock's growth in financials has been lagging behind the market, but it's showing good signs of profitability and efficiency. It's also underpriced and not in the overbought zone, making it an attractive option for investors.

Here are the key statistics:

In the recent quarter, the company faced significant operational challenges due to outages and shutdowns, resulting in a revenue impact of Rs. 375 crores and a bottom-line hit of Rs. 148 crores.

Gujarat Narmada Valley Fertilisers & Chemicals offers a wide range of products and services. They have a diverse portfolio that includes fertilizers and other chemicals.

One of their key products is Single Super Phosphate, which is a crucial nutrient for crops. They also offer Urea, a widely used fertilizer, and Neem Urea, a more sustainable option.

Their product list is extensive, with over 10 products available, including Ammonium Nitrophosphate and Narmada Phosphate. They also offer specialty products like Narmada Neem Urea and Methanol.

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Here are some of their key products and services:

Their fertilizer products are particularly notable, with 7 products available, including 100% Water Soluble Fertilizers N:P:K :: 19:19:19. They also offer a range of other products, including Polyurethane Coatings and Adhesives, and Purified Calcium Nitrate.

As an investor, it's essential to stay informed about the company's performance and outlook. In Q1 FY'25-'26, Gujarat Narmada Valley Fertilisers & Chemicals faced significant operational challenges, resulting in a revenue impact of Rs. 375 crores and a bottom-line hit of Rs. 148 crores.

The company's chemical division, however, showed resilience, with strategic adjustments underway, including a focus on aniline production and the potential benefits from extended anti-dumping duties.

Despite the setbacks, the company is exploring export opportunities to enhance revenue amidst weak domestic demand and fluctuating input costs. Engagement with a strategic management consultant aims to drive cost transformation and operational efficiency.

The company has reported stable operational performance with no expected plant outages for the remainder of the year. This is a positive sign for investors, indicating a more predictable and stable revenue stream.

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The fertilizer segment, however, reported an increase in losses, totaling around Rs. 100 crores, primarily due to outages and shutdowns. This highlights the need for the company to address these operational challenges to improve profitability.

Here are some key takeaways for investors:

The management team at Gujarat Narmada Valley Fertilizers & Chemicals Limited is led by Thiruvenkadam Natarajan, who has been the Chief Executive Officer since 2006.

Thiruvenkadam Natarajan has been at the helm of the company for over 16 years, guiding it through various phases of growth and development.

The company also has a Director of Finance/CFO, D. V. Parikh, who is 55 years old.

D. V. Parikh has been with the company for an undisclosed period of time, holding the position of Director of Finance/CFO.

The company's Board of Directors includes Gauri Kumar, who is 70 years old and has been a Director/Board Member since 2020-03-29, Ranjan Kumar Ghosh, who has been a Director/Board Member since 2020-10-28, and Bhadresh Vinay C. Mehta, who is 65 years old and has been a Director/Board Member since 2021-12-28.

Here is a list of the company's top management team:

GNFC, a company that's been around for a while, manufactures and sells various fertilizers, such as urea and ammonium nitro phosphate under the brand NARMADA.

Their product line is quite extensive, with a focus on fertilizers that are essential for agricultural growth.

GNFC's expertise lies in producing high-quality fertilizers that cater to the needs of farmers and the agricultural industry.

As we delve into the world of management, let's take a look at the key players at Gujarat Narmada Valley Fertilizers & Chemicals Limited.

Thiruvenkadam Natarajan has been the CEO since 2006-06-06.

D. V. Parikh, on the other hand, has been serving as the Director of Finance/CFO since 55 years old, as of the provided information.

Sanjay K. Agarwal is the Chief Tech/Sci/R&D Officer, but his age and exact date of appointment are not specified.

The board of directors at Gujarat Narmada Valley Fertilizers & Chemicals Limited consists of three members: Gauri Kumar, Ranjan Kumar Ghosh, and Bhadresh Vinay C. Mehta.

Gauri Kumar is 70 years old and joined the board on 2020-03-29.

Ranjan Kumar Ghosh's age is not specified, but he joined the board on 2020-10-28.

Bhadresh Vinay C. Mehta is 65 years old and joined the board in 2021.

Gujarat Narmada Valley Fertilisers & Chemicals has a market capitalization that fluctuated between 617M and 123B over the years.

The company's capitalization was 73.81B in one year, and 3.01B in another.

In 2024, the P/E ratio was 19.3x, while in 2025, it dropped to 12.2x.

Enterprise value for the company was 53.36B in one year, and 88.65B in another.

The EV/Sales ratio for 2024 was 0.89x, and for 2025, it was 0.67x.

About 59.06% of the company's shares are available for trading.

The yield for 2024 was 2.64%, while for 2025, it was 3.63%.

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GNFC has shown an inconsistent dividend trend over the last 5 years.

The current dividend yield is 3.58%, which means an investment of ₹1,000 in the stock is expected to generate a dividend of ₹35.84 every year.

The dividend per share is ₹18.00, as announced on November 24, 2023.

This dividend will be a welcome addition to your investment portfolio, providing a regular income stream.

Investors can expect to receive ₹35.84 in dividend every year, based on the current dividend yield.

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Gujarat Narmada Valley Fertilisers & Chemicals has released its Q1 FY26 results.

The company's operating revenue for Q1 FY26 was Rs 1,601 crore, a decline from Rs 2,021 crore in Q1 FY25.

T. Natarajan, Managing Director, explained that the annual turnaround at Bharuch complex had a significant impact on the company's financials, resulting in lower volume, unproductive costs, and higher fixed costs.

This turnaround affected the company's profitability, with PBT (Profit Before Tax) at Rs 105 crore, down from Rs 157 crore in Q1 FY25.

PAT (Profit After Tax) also saw a decline, standing at Rs 78 crore compared to Rs 115 crore in Q1 FY25.

The company is working to address these issues, including pursuing revisions in energy and fixed costs with the government.

A notable achievement for the company is the extension of the Anti-Dumping Duty on Aniline, which was valid till July 2025 and has now been extended till July 2030.

This move is expected to benefit the company in the long run.

The company has also seen a significant improvement in cash flow due to timely receipts of subsidy from the government on a year-over-year basis.