GHCL shares close 6% higher on government clearance for soda ash project in Gujarat

GHCL shares have gained 28 percent since the start of the year.

Shares of GHCL or Gujarat Heavy Chemicals climbed 6 percent on December 12, driven by news of environmental clearance by the government for its Soda Ash Greenfield Project in Kutch, Gujarat.

The Ministry of Environment, Forest, and Climate Change granted the approval on Thursday, enabling the company to move ahead with its expansion plans for soda ash production in the region. GHCL informed the stock exchanges.

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Following the announcement, the stock surged to a fresh 52-week high."The Ministry of Environment, Forest and Climate Change, Government of India, through its letter dated December 12, 2024, has approved the environmental clearance for the company’s Soda Ash Greenfield Project located in Kutch, Gujarat,” the company said in a regulatory filing on December 12.

Adding to the upbeat sentiment, brokerage firm Emkay Global Financial Services initiated coverage on GHCL earlier this week with a ‘buy’ recommendation and a target price of Rs 900 by December 2025. This implies a potential upside of nearly 29 percent from the stock’s closing price on December 11.

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Emkay cited the company’s strategic initiatives, including capacity expansions, entry into high-margin derivatives, and efforts towards backward integration, as key growth drivers expected to bolster profitability in the years ahead.

GHCL shares have gained 28 percent since the start of the year.

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