GSFC, engaged in manufacturing of fertilisers (62 per cent of revenue) and industrial chemicals (38 per cent), is amongst the most profitable companies in the industry.
Sorting out of phosphoric acid procurement issues is expected to fuel growth in the fertiliser segment whereas improvement in the Capro-Benzene spread will improve the performance of the industrial segment.
Investments in new products and capacity additions are expected to support revenue growth and the full effect of the same will be seen in FY17E.
We expect GSFC to regain its track record of consistently delivering profitable growth, which was marred by external factors (crashing commodity prices and geopolitical conflicts) in the last three years.
Top-line and bottom-line are expected to grow at CAGR of 7.8 per cent and 22.3 per cent, respectively, between FY15-17E.
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