Gulshan Pyols Swot Analysis

Investment Thesis on Gulshan Polyols Ltd.

Company Strength

• Gulshan Polyols Limited (GPL) is the market leader with substantial market share in the Calcium Carbonate and Sorbitol business segment in India, consisting of 9 major manufacturing facilities and has established sales-distribution network across the globe.

• It is also the largest exporter of Sorbitol from the country with a presence in 35 countries, covering three continents of Asia, Africa & Australia.

• Focus on quality is maintained through in-house microbiology laboratory, including HPLC equipment.

• Company enjoys an esteemed customer profile including some of the most trusted names in the world. GPL's customer list includes top clients from various industries:

FMCG: Colgate, Dabur, ITC, Unilever, Wipro FOOD: Britannia,

This indicates that company’s operations are becoming capital intensive as it is growing on its expansion path. On the other hand, it has witness declining tax rate due to which there is an increase in Net Income.

• Company has posted good consistent profit growth of 26.8% over last 5 years and has achieved highest ever-quarterly Net sales of INR 104.25 crores, registering a growth rate of 32.9%. Company has achieved ROE of 18% over last 5 years. Moreover, company has rewarded shareholders by paying regular dividends and had announced interim dividend at 35% in current year.

• Because of its expansion and access to the global market, EPS is expected increase. Return on equity is expected to be higher than the peers due to the higher expected return and increase in revenue.

• Company’s EPS for FY 13-14 stands at Rs. 32. Increase in revenues from recent commencement of commercial production is expected to deliver 20% growth in bottom line of the company. The expected EPS is INR 39 by end of FY 2014-15 and INR 45 by FY