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GHCL Ltd

NSE: GHCL BSE: 500171

456.65

(-1.29%)

Sun, 15 Mar 2026, 08:18 am

GHCL Analysis

dividend

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Pros

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    Cons

    • Unable to calculate sustainability of dividends as GHCL has not reported any payouts.
    • Unable to evaluate GHCL's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
    • Unable to evaluate GHCL's dividend against the top 25% market benchmark as the company has not reported any payouts.

    future

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    Pros

    • GHCL's earnings growth is expected to exceed the low risk savings rate of 7.2%.
    • GHCL's earnings are expected to exceed the low risk growth rate next year.
    • Performance (ROE) is expected to be above the current IN Chemicals industry average.
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    Cons

    • Cash flow for GHCL is expected to increase but not above the 50% threshold in 2 years time.
    • GHCL's earnings are expected to grow by 8.5% yearly, however this is not considered high growth (20% yearly).
    • GHCL's earnings growth is positive but not above the India market average.
    • GHCL's net income is expected to increase but not above the 50% threshold in 2 years time.
    • GHCL is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
    • A decline in GHCL's performance (ROE) is expected over the next 3 years.
    • GHCL's revenue is expected to increase but not above the 50% threshold in 2 years time.
    • GHCL's revenue is expected to grow by 6% yearly, however this is not considered high growth (20% yearly).
    • GHCL's revenue growth is positive but not above the India market average.

    health

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    Pros

    • GHCL is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
    • GHCL is profitable, therefore cash runway is not a concern.
    • GHCL is profitable, therefore cash runway is not a concern.
    • Debt is well covered by operating cash flow (50.4%, greater than 20% of total debt).
    • Debt is covered by short term assets, assets are 1x debt.
    • GHCL's cash and other short term assets cover its long term commitments.
    • The level of debt compared to net worth has been reduced over the past 5 years (171.6% vs 57.6% today).
    • Interest payments on debt are well covered by earnings (EBIT is 5.8x coverage).
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    Cons

    • GHCL's level of debt (57.6%) compared to net worth is high (greater than 40%).
    • High level of physical assets or inventory.

    management

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    Pros

    • The tenure for the GHCL board of directors is about average.
    • Ravi's compensation has been consistent with company performance over the past year, both up more than 20%.
    • More shares have been bought than sold by GHCL individual insiders in the past 3 months.
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    Cons

    • Ravi's remuneration is higher than average for companies of similar size in India.
    • The average tenure for the GHCL management team is less than 2 years, this suggests a new team.

    misc

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    Pros

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      Cons

      • GHCL is covered by less than 3 analysts.
      • GHCL has significant price volatility in the past 3 months.

      past

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      Pros

      • GHCL's 1-year earnings growth exceeds its 5-year average (13% vs 11.7%)
      • GHCL's year on year earnings growth rate has been positive over the past 5 years.
      • GHCL used its assets more efficiently than the IN Chemicals industry average last year based on Return on Assets.
      • GHCL's earnings growth has exceeded the IN Chemicals industry average in the past year (13% vs 9.1%).
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      Cons

      • GHCL's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
      • GHCL has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

      value

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      Pros

      • GHCL's share price is below the future cash flow value, and at a moderate discount (> 20%).
      • GHCL's share price is below the future cash flow value, and at a substantial discount (> 40%).
      • GHCL is good value based on assets compared to the IN Chemicals industry average.
      • GHCL is good value based on expected growth next year.
      • GHCL is good value based on earnings compared to the IN Chemicals industry average.
      • GHCL is good value based on earnings compared to the India market.
      • NSEI:GHCL is up 32.7% outperforming the Chemicals industry which returned 6.9% over the past month.
      • NSEI:GHCL is up 32.7% outperforming the market in India which returned 8% over the past month.
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      Cons

      • GHCL underperformed the Chemicals industry which returned 2.2% over the past year.
      • GHCL underperformed the Market in India which returned -14.5% over the past year.

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