Let’s have a complete understanding of Gujarat Ambuja Exports ltd.
Table of Contents
BUSINESS ANALYSIS
Gujarat Ambuja Exports ltd is majorly involved in the manufacturing of Corn Starch Derivatives, Soya Derivatives, Feed Ingredients, Cotton Yarn, and Edible Oils.
The company was incorporated in 1991.
The main intention of the company is to serve the Food, Pharmaceutical, Feed and many other industries in the Agro-Processing sector.
For the Agro division, there are 4 manufacturing plants at Kadi, Pithampur, Akola and Mandsaur.
For the Starch division, there are 4 manufacturing plants at Himmatnagar, Sitarganj, Haveri and Chalisgaon.
For the Cotspin division, there is 1 plant at Himmatnagar.
KEY PRODUCT CATEGORIES
Cotton Yarn.
Edible Oils.
Feed Ingredients.
Renewable Energy.
Soya Derivatives.
Starch Derivatives.
IMPORTANT COMPANY MILESTONES
1986-1990: Setup of Oil and Flour Mill at Kadi, Gujarat.
1991-1993: 1st Solvent Extraction plant at Kadi, Gujarat.
1994-1996: 42,000 Spindles cotton spinning unit at Himmatnagar.
1999-2004: Establishment of 2 Edible Oil Refineries.
2005-2006: Start of Sorbitol.
2007-2010: Establishment of Maize processing unit at Uttarakhand.
2010-2011: Establishment of Maize crushing plant at Haveri (Karnataka).
2015-2018: Establishment of Maize Crushing plant at Chalisgaon, Maharashtra.
2018-2020: Establishment of Maize Crushing plant at Malda, West Bengal.
FINANCIAL KEY METRICS
| Market Capitalization | ₹ 4,118 |
| Stock P/E | 9.93 |
| Industry P/E | 24 |
| ROCE | 27.8% |
| ROE | 22.7% |
| Debt to Equity ratio | 0.10 |
The Market Capitalization of Gujarat Ambuja Exports ltd is ₹ 4,118 Cr.
The price to earnings ratio of Gujarat Ambuja Exports ltd is 9.93 which is very less as compared to the industry price to earnings ratio of 24.
Gujarat Ambuja Exports ltd has a return on capital employed of 27.8% which shows that the company is providing a good return on the capital invested.
The return on equity of Gujarat Ambuja Exports ltd is 22.7% which is also great as per the stock’s valuations.
The debt to equity ratio of Gujarat Ambuja Exports ltd is 0.10 which is almost negligible.
Company has been delivering a good profit growth of 28.39% CAGR over the last 5 years.
FINANCIAL ANALYSIS
Figures in Rs. Crores
| Balance Sheet | Mar 2010 | Mar 2011 | Mar 2012 | Mar 2013 | Mar 2014 | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 |
| Share Capital | 28 | 28 | 28 | 28 | 28 | 28 | 28 | 23 | 23 | 23 | 23 | 23 |
| Reserves | 393 | 479 | 527 | 627 | 727 | 798 | 893 | 830 | 999 | 1185 | 1304 | 1643 |
| Borrowings | 179 | 232 | 361 | 183 | 401 | 309 | 329 | 636 | 647 | 217 | 160 | 163 |
| Other Liabilities | 170 | 256 | 224 | 364 | 154 | 148 | 168 | 220 | 226 | 290 | 250 | 345 |
| Total Liabilities | 769 | 995 | 1139 | 1202 | 1310 | 1283 | 1417 | 1709 | 1895 | 1715 | 1736 | 2174 |
| Fixed Assets | 297 | 299 | 289 | 458 | 479 | 543 | 568 | 607 | 772 | 753 | 787 | 731 |
| CWIP | 14 | 45 | 169 | 38 | 64 | 63 | 103 | 159 | 54 | 61 | 12 | 106 |
| Investments | 41 | 78 | 44 | 45 | 42 | 52 | 77 | 47 | 43 | 52 | 22 | 192 |
| Other Assets | 417 | 572 | 637 | 661 | 726 | 625 | 669 | 896 | 1026 | 849 | 915 | 1145 |
| Total Assets | 769 | 995 | 1139 | 1202 | 1310 | 1283 | 1417 | 1709 | 1895 | 1715 | 1736 | 2174 |
As per the above table, the reserves in the company are constantly increasing which is a good sign that the investors are interested in Gujarat Ambuja Exports Ltd shares.
The Borrowings are decreasing gradually which is a good sign with respect to the balance sheet.
For the quarter ended 30-6-2021, Gujarat Ambuja Exports Ltd noted a sales of ₹ 1025 Cr.
The operating profit of Gujarat Ambuja Exports Ltd was ₹ 168 Cr in the last quarter ended 30-6-2021.
The Net profit of Gujarat Ambuja Exports Ltd was ₹ 114 Cr in the quarter ended 30-6-2021.
Figures in Rs. Crores
| Quarterly Results | Sep 2018 | Dec 2018 | Mar 2019 | Jun 2019 | Sep 2019 | Dec 2019 | Mar 2020 | Jun 2020 | Sep 2020 | Dec 2020 | Mar 2021 | Jun 2021 |
| Sales | 776 | 1177 | 1264 | 1011 | 908 | 999 | 898 | 828 | 989 | 1211 | 1677 | 1025 |
| Expenses | 702 | 1041 | 1199 | 955 | 863 | 898 | 818 | 752 | 879 | 1054 | 1487 | 857 |
| Operating Profit | 74 | 136 | 64 | 56 | 45 | 101 | 80 | 76 | 110 | 157 | 189 | 168 |
| Other Income | 2 | 2 | 3 | 3 | 1 | 2 | 4 | 6 | 11 | 10 | 1 | 9 |
| Profit before tax | 46 | 109 | 42 | 31 | 17 | 76 | 57 | 53 | 93 | 141 | 165 | 151 |
| Tax % | 0.28 | 0.26 | 0.25 | 0.27 | 0.16 | 0.29 | 0.05 | 0.3 | 0.22 | 0.22 | 0.28 | 0.24 |
| Net Profit | 33 | 80 | 32 | 23 | 15 | 54 | 54 | 37 | 73 | 110 | 118 | 114 |
| EPS in Rs | 1.45 | 3.51 | 1.37 | 0.99 | 0.63 | 2.36 | 2.37 | 1.63 | 3.18 | 4.78 | 5.16 | 4.96 |
SHARE HOLDING SYNOPSIS
| Share Holding | Dec 2018 | Mar 2019 | Jun 2019 | Sep 2019 | Dec 2019 | Mar 2020 | Jun 2020 | Sep 2020 | Dec 2020 | Mar 2021 | Jun 2021 | Sep 2021 |
| Promoters | 63.76 | 63.76 | 63.76 | 63.76 | 63.76 | 63.81 | 63.82 | 63.84 | 63.84 | 63.84 | 63.84 | 63.84 |
| FIIs | 1.5 | 1.78 | 2.21 | 2.49 | 2.47 | 2.51 | 2.43 | 2.78 | 2.91 | 3.02 | 3.68 | 4.08 |
| DIIs | 0.79 | 0.77 | 0.66 | 0.56 | 0.8 | 0.31 | 0.63 | 0.19 | 0.19 | 0.07 | 0.07 | 0.07 |
| Public | 33.94 | 33.69 | 33.37 | 33.19 | 32.97 | 33.37 | 33.12 | 33.2 | 33.06 | 33.08 | 32.41 | 32.01 |
This is a brief overview of the financials of Gujarat Ambuja Exports Ltd which showcases the dominance in their respective market.
Now, let’s deep dive into the technical of Gujarat Ambuja Exports share price.
CHART PATTERN ANALYSIS
A falling wedge pattern is formed which is visible in the daily timeframe.
As per the current chart, a breakout is achieved which shows that the stock will gain momentum and achieve its technical target.
A good target of 15% can be easily achieved if an individual makes a position in this stock.
The Gujarat Ambuja Exports share price on 13th October 2021 is ₹ 179.
MOVING AVERAGE
For Gujarat Ambuja Exports share price analysis, we are taking 9 days and 21 days moving averages.
As per the current chart, the 9 days moving average has crossed the 21 days moving average which is a great indicator to enter in the stock.
The red line highlights the 9 days moving average while the 21 days moving average is indicated by blue line.
SUPER TREND
Super trend indicator is giving a buy signal in a 4 hours time frame.
One should not decide based on the super trend instead should focus on the other aspects and then decide.