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GHCL Limited (500171) Fair Value & Analysis

Basic Materials · IN · Market cap ₹14.3B

GL GHCL Limited 500171 · BSE
Price₹428.60
Fair Value₹479.96
Upside+12.0%
Quality53/100
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Weak Growth
Thin margins · 9.8% net margin
Low debt
4.76% dividend yield
Moderate moat 51/100
Evidence: High Range ₹382.79 – ₹980.67 Share as image

Fair value as of: Aug 15, 2026

From 24 valuation models · updated today

Fair value updated Aug 15, 2026, revised from ₹597.38 to ₹479.96 (−19.7%) since Aug 2, 2026. Share price −1.8% over the past month.

A solid business, screening 12% undervalued on our models.

What matters now

  • A fairly wide model range (₹382.79 to ₹980.67) leaves room in how you read the outcome.
  • Our model range runs from ₹382.79 (bear) to ₹980.67 (bull), base ₹479.96. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 53/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

₹724.83 ₹164.38 Fair Value ₹479.96 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 15, 2026.

How to read this chart

60‑month range ₹164.38 – ₹724.83 · fair‑value band ₹382.79 – ₹980.67 · the ₹428.60 price screens below the ₹479.96 fair value. Dashed = 300-day average. As of Aug 15, 2026.

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Analysis

GHCL Limited (500171) currently trades at ₹428.60, while our model-based Fair Value estimate is ₹479.96, implying the stock looks roughly 12.0% undervalued today. The Quality Score stands at 53/100 (solid quality), in the Basic Materials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, GHCL Limited generated revenue of ₹28.4B at a net margin of 9.8%. Revenue declined 3.5% year over year. It earns a return on equity of 12.9%. The stock trades on a trailing P/E of 5.8 (as of Aug 2, 2026). Fundamentals as of Aug 15, 2026

Our scenario range runs from ₹382.79 (bear case) to ₹980.67 (bull case); at ₹428.60, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 34% below its 52-week high and 5% above its 52-week low, currently above its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -62% fair-value upside, at 12%, 500171 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF ₹333.40 ₹451.18 ₹666.52 80
Residual Income ₹435.85 ₹582.66 ₹1,831 76
Rev-Margin DCF ₹309.97 ₹466.63 ₹664.29 74
All 24 models by family
DCF Models
FCF DCF ₹319.36 ₹439.61 ₹679.84 38
Owner Earnings ₹422.27 ₹578.92 ₹891.90 31
5Y Revenue Exit ₹309.97 ₹458.88 ₹682.47 39
5Y EBITDA Exit ₹478.69 ₹745.78 ₹1,110 41
5Y P/E Exit ₹556.68 ₹878.40 ₹1,273 38
10Y Revenue Exit ₹301.25 ₹428.53 ₹571.78 36
10Y EBITDA Exit ₹414.10 ₹615.76 ₹843.86 37
10Y P/E Exit ₹461.87 ₹702.31 ₹947.42 35
Earnings-Based
Graham-Dodd ₹446.70 ₹700.12 ₹839.66 54
EPV ₹648.21 ₹759.65 ₹857.16 59
Dividend Discount
Gordon GGM ₹110.50 ₹130.96 ₹153.94 70
DDM Multi-Stage ₹110.50 ₹145.94 ₹190.77 61
Multiples
P/E Multiple ₹837.56 ₹1,117 ₹1,396 63
P/S Multiple ₹376.94 ₹502.58 ₹628.23 58
P/B Multiple ₹837.56 ₹1,117 ₹1,396 55
EV/EBIT ₹825.02 ₹1,107 ₹1,389 53
EV/EBITDA ₹671.51 ₹902.16 ₹1,133 54
EV/Revenue ₹331.37 ₹482.14 ₹632.92 43
Asset-Based
NCAV (Graham) ₹208.17 ₹278.95 ₹416.34 50
Growth DCF
Growth DCF ₹333.40 ₹451.18 ₹666.52 80
Rev-Margin DCF ₹309.97 ₹466.63 ₹664.29 74
Economic Profit
Residual Income ₹435.85 ₹582.66 ₹1,831 76
ROIC Compounder ₹656.16 ₹789.22 ₹936.94 72
Growth Earnings
Growth-Adj P/E ₹596.68 ₹852.40 ₹1,108 68

Widest divergence: Multiples (₹902.16) versus Dividend Discount (₹130.96). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) ₹28.4B
Revenue growth (YoY) -3.5%
Net margin 9.8%
Return on equity 12.9%
P/E ratio 5.8 as of Aug 2, 2026
Operating margin 14.9%
More key figures
EPS (TTM) ₹28.96
Dividend yield 4.8%
EPS growth (YoY) -24.9%

Figures from reported company fundamentals · as of Aug 15, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 53/100

Of which business quality 54 · Market factors (momentum, volatility) 28

Profitability 61
Margins and returns on capital today
Quality Growth 32
Are margins and returns improving?
Cashflow 44
Earnings quality: real cash, not paper profit
Fin. Strength 60
Balance sheet, leverage, solvency risk
Investment 40
Disciplined investing over empire-building
Low Volatility 60
Calm price path (market factor)
Momentum 19
Price trend over the last 3–12 months (market factor)
52W Momentum 7
Distance to the 52-week high (market factor)
Net Issuance 79
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

GHCL Limited, together with its subsidiaries, manufactures and sells inorganic chemicals and home textile products in India.

Full company description

GHCL Limited, together with its subsidiaries, manufactures and sells inorganic chemicals and home textile products in India. It offers light soda ash, a basic alkali products used in soap and detergents, pulp and paper, iron and steel, aluminum cleaning compounds, water softening and dyeing, in fibre-reactive dyes, effluent treatment, and chemicals products; dense soda ash for use in glass manufacturing, silicate, ultramarine, and chemical products under the LION brand name. The company also provides refined sodium bicarbonate for use in food, food dyes, poultry and animal feed, leather tanning, fire extinguishers, vegetable cleaning, blasting of metals, manufacture of chemicals, pharma, deodorizers, and personal care products. In addition, it manufactures and sells edible and industrial grade salt, as well as markets honey and spices under the Sapan and i-FLO brands. Further, the company manufactures and exports cotton yarn, polyester yarn, and home textile products, including bed sheets, bed covers, duvet sets, and comforter sets under the REKOOP, CIRKULARITY, MEDITASI, and REKOOP 2.0 brands. Additionally, manufactures food products; and wholesales food, beverages, and tobacco. GHCL Limited was incorporated in 1983 and is based in Noida, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

GHCL Limited reported revenue of ₹31.8B in FY2025 versus ₹24.9B in FY2021, a compound +6.3%/yr. Reported net income was ₹6.2B in FY2025, compounding +17.6%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
₹31.8B
Latest YoY
−7.6%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+1.4%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−0.7%
Avg. growth/yr (11Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+3.2%
Revenue +6.3%/yr
FY21 ₹24.9B
FY22 ₹30.5B
FY23 ₹45.5B
FY24 ₹34.5B
FY25 ₹31.8B
Net income +17.6%/yr
FY21 ₹3.3B
FY22 ₹6.5B
FY23 ₹11.4B
FY24 ₹7.9B
FY25 ₹6.2B

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Cite: Fair Value Calculator (2026). "GHCL Limited Fair Value". https://www.fairvalue-calculator.com/stock/500171

Peer Group

Basic Materials · 221 stocks

How this stock ranks against its sector: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median. (Industry “Chemicals - Major Diversified” was too small, so the broader sector is used.)

Quality Score 45 · Below median
Fair Value upside +37% · Top 25%
Return on equity (TTM) 13% · Above median
Return on assets 7% · Above median
Net margin (TTM) 10% · Above median
Operating margin (TTM) 15% · Above median
Revenue growth -4% · Bottom 25%
Dividend yield (TTM) 4.8% · Top 25%
Debt / equity 0.06× · Higher than median

Valuation Multiples vs Basic Materials median · lower = cheaper

P/E (TTM) 5.8× · Cheaper than 75% of peers
P/B 0.36× · Cheaper than 75% of peers
P/S (TTM) 0.50× · Cheaper than median
EV/EBITDA 2.9× · Cheaper than 75% of peers

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Chemicals - Major Diversified stocks, each showing price versus our Fair Value estimate (as of Aug 15, 2026).

Stock Price Fair Value vs Fair Value
BASF India Limited 500042 ₹3,990 ₹1,527 -62%
Rain Industries Limited 500339 ₹214.05 ₹21.49 -90%
NOCIL Limited 500730 ₹163.00 ₹93.31 -43%
Bhansali Engineering Polymers Limited 500052 ₹120.65 ₹119.36 -1%
Uniphos Enterprises Limited 500429 ₹96.00 ₹164.02 +71%
Diamines and Chemicals Limited 500120 ₹240.30 ₹47.45 -80%
Lords Chloro Alkali Limited 500284 ₹137.75 ₹41.77 -70%
Ishan Dyes & Chemicals Limited 531109 ₹50.00 ₹59.26 +19%
Universal Starch-Chem Allied Limited 524408 ₹199.60 ₹26.59 -87%
Laffans Petrochemicals Limited 524522 ₹28.50 ₹8.78 -69%

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Frequently asked questions

Is GHCL Limited (500171) overvalued or undervalued?
As of Aug 15, 2026, our model estimates a fair value of ₹479.96 versus a price of ₹428.60, about +12% (undervalued).
What is the fair value of 500171?
Our model-based fair value for GHCL Limited is ₹479.96 (as of Aug 15, 2026), built from audited fundamentals. The current price is ₹428.60.
What is the quality score of 500171?
GHCL Limited has a Quality Score of 53/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of GHCL Limited (500171)?
GHCL Limited reported trailing-twelve-month revenue of about ₹28.4B (latest available figure, as of Aug 15, 2026).
What is the net profit margin of 500171?
The net profit margin of GHCL Limited is about 9.8%, meaning it keeps roughly 9.8% of revenue as net income. Based on the latest reported figures.
Does GHCL Limited pay a dividend?
GHCL Limited currently shows a dividend yield of about 4.76% relative to its recent price (as of Aug 15, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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