Buy Gulshan Polyols; target of Rs 251: Firstcall Research

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26 Aug, 2025 12:21

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Firstcall Research report on Gulshan Polyols“Gulshan Polyols Ltd. (GPL) was incorporated, to take over the Sorbitol project from Gulshan Sugars & Chemicals Ltd.GSCL) in terms of scheme of Arrangement/ demerger. GPL has six manufacturing facilities spread across five states in India and an established sales-distribution network across the globe. Manufacturing facilities are built over 150 acres of total land area. GPL has commissioned 10MW co-gen Power Plants at its various locations and employees over 1500 people. Focus on quality is maintained through in-house microbiology laboratory, including HPLC equipment. The plant was set-up in 1996 in the State of Gujarat in the parent company i.e. Gulshan Sugars & Chemicals .The plant is equipped with International Quality Equipment and Technology having the largest capacity in India. The plant is capable to produce Crystalline and Non–crystalline grade of Sorbitol which is a unique feature as compared to other domestic plants. The present installed capacity is 30000 Tones of Sorbitol. Gulshan Group has diversified interests and is engaged in manufacture of various Industrial Chemicals for Multiple Applications in several companies. The Group was initially engaged in sugar business, which later diversified into the field of Industrial Chemicals. The Group set up its first Indigenous plant to produce ‘Synthetic Fillers’ popularly known as ‘Calcium Carbonate (Caco3) ‘Precipitated and Activated’ in the State of Uttar Pradesh where the high quality Limestone is available in plenty in nearby area. Gulshan Polyols Ltd and Gulshan Sugars & Chemicals Ltd both jointly appointed Price Waterhouse Coopers (PWC) to carry out the valuation exercise and to suggest entitlement ratio upon amalgamation / merger of Gulshan Sugars & Chemicals Ltd with Gulshan Polyols Ltd.” “At the current market price of Rs.222.25, the stock P/E ratio is at 6.66 x FY15E and 5.80 x FY16E respectively. Earning per share (EPS) of the company for the earnings for FY15E and FY16E is seen at Rs.33.38 and Rs.38.35 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 17% and 10% over 2013 to 2016E respectively. On the basis of EV/EBITDA, the stock trades at 3.96 x for FY15E and 3.51 x for FY16E. Price to Book Value of the stock is expected to be at 0.94 x and 0.81 x respectively for FY15E and FY16E. We recommend ‘BUY’ in this particular scrip with a target price of Rs.251.00 for Medium to Long term Investment,” says Firstcall Research report.

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