GHCL shares gain over 8% to hit 52-week high on environment clearance for soda ash project in Gujarat – CNBC TV18

Chemicals producer GHCL Ltd shares gained more than 6% on Thursday, December 12, after the company said it had secured environment clearance for its Soda Ash Greenfield Project in Kutch, Gujarat.

The Ministry of Environment, Forest and Climate Change, Government of India, granted the clearance on December 12, 2024. This comes as part of GHCL’s efforts to expand its soda ash production capacity in the region, the company informed the stock exchanges in a filing.

After the announcement, shares of GHCL rallied as much as 8.26% to hit a fresh 52-week high of ₹755.95 apiece on the BSE. The stock, however, pared some of early gains to trade 7.62% higher at ₹751.45 apiece on the BSE at 2:16 pm.

“The Ministry of Environment, Forest and Climate Change, Government of India vide letter dated December 12, 2024, has granted Environment Clearance w.r.t. Soda Ash Greenfield Project
of the Company located in Kutch, Gujarat,” the company said in the stock exchange filing.

Earlier this week, on December 9, Emkay Global Financial Services initiated coverage on GHCL stock with a ‘buy’ rating. The brokerage projected a target price of ₹900 per share by December 2025. This target price suggests an upside of nearly 29% from its closing price on Wednesday, December 11.

The brokerage was positive on the chemicals stock due to the company’s ongoing strategic initiatives, including its expansions, foray into high-margin derivatives, and backward integration efforts. These initiatives are expected to fuel significant growth and enhance profit margins in the coming years, according to Emkay Global.

For the quarter ended September 2024, GHCL Ltd. reported an 8.4% year-on-year increase in its consolidated net profit at ₹154.83 crore compared to ₹142.84 crore in the same period a year ago. However, the company’s total income saw a slight decline, falling to ₹810.23 crore from ₹816.65 crore in the corresponding quarter of the preceding fiscal.

GHCL Ltd, primarily engaged in the manufacturing of soda ash (Anhydrous Sodium Carbonate), has also demerged its spinning business, which now operates as a separate entity named GHCL Textiles Ltd.

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