GHCL- New value pick from JTtime

Hi Friends,

Welcome back to the JTtime

After Demonization, I was bit quite on investment decisions as it had spread panic among investors. But it did not took much time to recover back and market looks bullish

Let's look at new stock for value pick- GHCL

Stock price bounced back from 200 EMA. And looks like, it is set to head for new high. Volumes looks bit dry after Demonization. Volumes are needed for non stop rally as it had before.

Fundamental numbers



Market Cap.: ₹ 2,719.04 Cr.
Current Price: ₹ 271.85
Book Value: ₹ 117.83
Stock P/E: 7.98
Dividend Yield: 1.29%
Face Value: ₹ 10
52 Week High/Low: ₹ 299 / ₹ 95.35
Dividend in Rs: 2.2
EPS: ₹ 33.83
Latest Annualized Cost of Equity: 54.23%
Latest Annualized Return on Equity: 46.64%
Cost of Equity based on Price to Earning Ratio: 52.81%

Above numbers indicates sound fundamentals. With Face Value 10, and stock PE under 8, it looks undervalued

Sustainable Growth Rate: 47.94%
Retention Based Growth Rate: 40.28%
Profit growth: 65.05%
QoQ Profits: -12.2%
YOY Quarterly profit growth: 83.55%
Profit growth 3Years: 21.89%
Sales growth: 8.24%
Sales growth 3Years: 6.39%
Debt to equity: 1.27
Return on capital employed: 25.2%
Enterprise Value to Sales: 1.48
Expected Dividend Next Year: ₹ 6.47


This second set of numbers indicates decent growth year on year. And its still on growth path


So, a stock with good set of numbers and growth story is a decent candidate for investment. My personal opinion for investors would be to book few stocks at around 400


Happy Investing💸💸💸💸💸💸💸💸💸