Company Profile -
Gulshan Polyols Ltd (GPL) was incorporated in year 1981 as Gulshan Sugars & Chemicals Limited with primary business of manufacturing Calcium Carbonate both Precipitated Calcium Carbonate (PCC) and Activated Calcium Carbonate (ACC) with an initial capacity of 2100 MTPA at Muzaffarnagar, U.P. GPL is a manufacturer of Calcium Carbonate and specialty chemical Sorbitol 70%.
Clientele:
GPL's customer list includes who's who of corporate India:-
FMCG :Colgate, Dabur, ITC, Unilever, Wipro
Food :Brittania, Candico, Yahoo Foods
Paints :Berger, Asian Paints, Kansai, Pidilite
Paper :ITC, TNPL,BILT, ABC Papers, Century Pulp
Pharma :IPCA, Cadilla, Torrent, AstraZeneca, Novartis, Pfizer, Merck etc
Future triggers -
During the year, the company has set up and commissioned the following projects:
i. In competition with various MNC vendors, ITC Limited had awarded GPL to set up an Onsite PCC (Percipated Calcium Carbonate) plant for their specialty Paper division at Tribeni, West Bengal. Company has successful commissioned and supply the desired quality for their Cigarette paper making plant. This is the 3rd Onsite PCC plant set up by the Company in India for supply of specialty PCC suitable for Paper industry.
ii. Long awaited, commercial production of Indian Made Foreign Liquor (IMFL) has also been commenced at its bottling unit situated at Boregaon, Madhya Pradesh. The product is very well received in the market under the brand name of 'Tiger Gold'.
iii. The Company has also received the environmental clearance from Ministry of environment and Forest (MOEF), New Delhi, to set up a Grain based distillery at Boregaon. Further Clearance from Madhya Pradesh Pollution Control Board is expected soon.
iv. The Company's Grain based plant for manufacturing Dextrose Monohydrate (DMH), Maltodextrin Powder (MDP) and Liquid Glucose has also started the commercial production at Muzaffarnagar, Uttar Pradesh.
v. The Company has successfully commissioned the plant & equipment for updating the technology of Sorbitol manufacturing and making more environment friendly together with enhancement of capacity at Bharuch, Gujarat.
Conclusion:
In today's tough environment,those companies in smallcap and midcap segment have good future which DOMINANT market share of their product, assured demand from growing user industry, low debt, steady growth, strict control of costs and GPL meets all these criteria as its products are used in variety of industries (and those industries are growing rapidly). Moreover,company is supplying its products to renowned MNCs and other big Indian companies,so there are no problem of bad debts and delayed payments. With most of the future triggers are yet to reflect in the result and with private players on the board at the price of 175,there is hardly any downside risk in this stock. Hence we recommend to buy this stock in the price range of 210 -230 for the target of 300.
Gulshan Polyols Ltd (GPL) was incorporated in year 1981 as Gulshan Sugars & Chemicals Limited with primary business of manufacturing Calcium Carbonate both Precipitated Calcium Carbonate (PCC) and Activated Calcium Carbonate (ACC) with an initial capacity of 2100 MTPA at Muzaffarnagar, U.P. GPL is a manufacturer of Calcium Carbonate and specialty chemical Sorbitol 70%.
Clientele:
GPL's customer list includes who's who of corporate India:-
FMCG :Colgate, Dabur, ITC, Unilever, Wipro
Food :Brittania, Candico, Yahoo Foods
Paints :Berger, Asian Paints, Kansai, Pidilite
Paper :ITC, TNPL,BILT, ABC Papers, Century Pulp
Pharma :IPCA, Cadilla, Torrent, AstraZeneca, Novartis, Pfizer, Merck etc
Future triggers -
During the year, the company has set up and commissioned the following projects:
i. In competition with various MNC vendors, ITC Limited had awarded GPL to set up an Onsite PCC (Percipated Calcium Carbonate) plant for their specialty Paper division at Tribeni, West Bengal. Company has successful commissioned and supply the desired quality for their Cigarette paper making plant. This is the 3rd Onsite PCC plant set up by the Company in India for supply of specialty PCC suitable for Paper industry.
ii. Long awaited, commercial production of Indian Made Foreign Liquor (IMFL) has also been commenced at its bottling unit situated at Boregaon, Madhya Pradesh. The product is very well received in the market under the brand name of 'Tiger Gold'.
iii. The Company has also received the environmental clearance from Ministry of environment and Forest (MOEF), New Delhi, to set up a Grain based distillery at Boregaon. Further Clearance from Madhya Pradesh Pollution Control Board is expected soon.
iv. The Company's Grain based plant for manufacturing Dextrose Monohydrate (DMH), Maltodextrin Powder (MDP) and Liquid Glucose has also started the commercial production at Muzaffarnagar, Uttar Pradesh.
v. The Company has successfully commissioned the plant & equipment for updating the technology of Sorbitol manufacturing and making more environment friendly together with enhancement of capacity at Bharuch, Gujarat.
Conclusion:
In today's tough environment,those companies in smallcap and midcap segment have good future which DOMINANT market share of their product, assured demand from growing user industry, low debt, steady growth, strict control of costs and GPL meets all these criteria as its products are used in variety of industries (and those industries are growing rapidly). Moreover,company is supplying its products to renowned MNCs and other big Indian companies,so there are no problem of bad debts and delayed payments. With most of the future triggers are yet to reflect in the result and with private players on the board at the price of 175,there is hardly any downside risk in this stock. Hence we recommend to buy this stock in the price range of 210 -230 for the target of 300.
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