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GHCL Limited (GHCL) Fair Value & Analysis

Basic Materials · IN · Market cap ₹40.1B

GL GHCL Limited GHCL · NSE
Price₹429.00
Fair Value₹589.84
Upside+37.5%
Quality66/100
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Mixed Growth
Solidly profitable · 15.4% net margin
Low debt · generates free cash flow
2.74% dividend yield
Ranks above peers (12/14)
Moderate moat 61/100
Evidence: High Range ₹397.31 – ₹844.05 Share as image

Fair value as of: Aug 13, 2026

From 26 valuation models · updated 3 days ago

Fair value updated Aug 13, 2026, revised from ₹672.12 to ₹589.84 (−12.2%) since Aug 6, 2026. Share price −1.7% over the past month.

A solid business, screening 37% undervalued on our models.

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What matters now

  • Solid quality (66/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (₹397.31 to ₹844.05) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

₹724.50 ₹201.66 Fair Value ₹589.84 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range ₹201.66 – ₹724.50 · fair‑value band ₹397.31 – ₹844.05 · the ₹429.00 price screens below the ₹589.84 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

GHCL Limited (GHCL) currently trades at ₹429.00, while our model-based Fair Value estimate is ₹589.84, implying the stock looks roughly 37.5% undervalued today. The Quality Score stands at 66/100 (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 ₹30.6B at a net margin of 15.4%. Revenue grew 1.2% year over year. It earns a return on equity of 13.4%. The balance sheet holds a net cash position of ₹66.2M. Fundamentals as of Aug 13, 2026

Our scenario range runs from ₹397.31 (bear case) to ₹844.05 (bull case); at ₹429.00, 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 6% above its 52-week low, currently below its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -60% fair-value upside, at 37%, GHCL 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 ₹564.38 ₹841.36 ₹1,241 80
Residual Income ₹371.02 ₹462.09 ₹1,094 76
Rev-Margin DCF ₹415.77 ₹636.44 ₹893.67 74
All 26 models by family
DCF Models
FCF DCF ₹555.78 ₹870.53 ₹1,355 38
Owner Earnings ₹405.25 ₹633.80 ₹985.70 31
5Y Revenue Exit ₹415.77 ₹632.90 ₹906.64 39
5Y EBITDA Exit ₹534.30 ₹856.12 ₹1,231 41
5Y P/E Exit ₹579.64 ₹941.49 ₹1,322 38
10Y Revenue Exit ₹450.33 ₹661.36 ₹940.09 36
10Y EBITDA Exit ₹536.87 ₹816.90 ₹1,189 37
10Y P/E Exit ₹565.85 ₹876.39 ₹1,259 35
Earnings-Based
Graham-Dodd ₹350.49 ₹1,126 ₹1,502 54
Lynch FV ₹249.67 ₹356.67 ₹463.68 50
PEG = 1.0 ₹249.67 ₹356.67 ₹463.68 46
EPV ₹450.20 ₹524.22 ₹588.99 59
Dividend Discount
Gordon GGM ₹114.92 ₹238.95 ₹379.07 70
DDM Multi-Stage ₹114.92 ₹192.77 ₹250.78 61
Multiples
P/E Multiple ₹657.17 ₹876.22 ₹1,095 63
P/S Multiple ₹376.07 ₹501.43 ₹626.79 58
P/B Multiple ₹657.17 ₹876.22 ₹1,095 55
EV/EBIT ₹690.31 ₹918.39 ₹1,146 53
EV/EBITDA ₹585.48 ₹778.61 ₹971.75 54
EV/Revenue ₹357.08 ₹507.51 ₹657.94 43
Asset-Based
NCAV (Graham) ₹193.74 ₹259.62 ₹387.49 50
Growth DCF
Growth DCF ₹564.38 ₹841.36 ₹1,241 80
Rev-Margin DCF ₹415.77 ₹636.44 ₹893.67 74
Economic Profit
Residual Income ₹371.02 ₹462.09 ₹1,094 76
ROIC Compounder ₹466.51 ₹593.88 ₹754.88 72
Growth Earnings
Growth-Adj P/E ₹563.67 ₹805.24 ₹1,047 68

Widest divergence: DCF Models (₹816.90) versus Dividend Discount (₹192.77). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) ₹30.6B
Revenue growth (YoY) +1.2%
Net margin 15.4%
Return on equity 13.4%
Free cash flow ₹4.4B FY2026
P/E ratio 8.6
More key figures
Operating margin 18.7%
EPS (TTM) ₹50.13
Dividend yield 2.7%
EPS growth (YoY) -21.8%
Net cash ₹66.2M FY2026

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 66/100

Of which business quality 65 · Market factors (momentum, volatility) 40

Profitability 56
Margins and returns on capital today
Quality Growth 9
Are margins and returns improving?
Cashflow 64
Earnings quality: real cash, not paper profit
Fin. Strength 81
Balance sheet, leverage, solvency risk
Investment 88
Disciplined investing over empire-building
Low Volatility 87
Calm price path (market factor)
Momentum 26
Price trend over the last 3–12 months (market factor)
52W Momentum 10
Distance to the 52-week high (market factor)
Net Issuance 90
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 trading of inorganic chemicals in India and internationally.

Full company description

GHCL Limited, together with its subsidiaries, manufactures and trading of inorganic chemicals in India and internationally. The company offers light soda ash, a basic industrial alkali chemical used in soap and detergents, pulp and paper, iron and steel, aluminum cleaning compounds, water softening and dyeing, in fiber-reactive dyes, effluent treatment, and chemicals products; dense soda ash for use in glass manufacturing, silicate, ultramarine, and other chemical industries; and refined sodium bicarbonate for use in food, food dyes, poultry and animal feed, leather tanning, fire extinguishers, vegetable cleaning applications, blasting of metals, manufacture of chemicals, pharma, oral care products, and deodorizers. It also provides edible and industrial grade salt products. In addition, the company trades in various chemicals, such as sodium tripolyphosphate, sodium lignosulfonate, PVC resin, titanium dioxide, citric acid, EVA, zircon flour and sand, kaolin clay, and borax pentahydrate. It sells its products under the i-FLO, and Sapan brands. The company was incorporated in 1983 and is based in Noida, India.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

GHCL Limited reported revenue of ₹30.6B in FY2026 versus ₹37.8B in FY2022, a compound −5.1%/yr. Reported net income was ₹4.7B in FY2026, compounding −7.7%/yr from FY2022.

Growth Quality 71/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2026)
₹30.6B
Latest YoY
−3.7%
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.
−12.3%
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.
+4.2%
Avg. growth/yr (22Y) 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.
+8.7%
Revenue −5.1%/yr
FY22 ₹37.8B
FY23 ₹45.5B
FY24 ₹34.4B
FY25 ₹31.8B
FY26 ₹30.6B
Net income −7.7%/yr
FY22 ₹6.5B
FY23 ₹11.4B
FY24 ₹7.9B
FY25 ₹6.2B
FY26 ₹4.7B
Character of growth · EPS growth decomposed (2015-2026) +10.4 % p.a.
Revenue per share +3.1 pp

of which total revenue +2.5 pp · buybacks/dilution +0.6 pp

EBIT margin +3.9 pp
Tax rate +0.6 pp
Residual (interest, one-offs) +2.8 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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

Peer Group

Chemicals · 331 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 66 · Top 25%
Fair Value upside +38% · Top 25%
Return on equity (TTM) 13% · Top 25%
Return on assets 9% · Top 25%
Net margin (TTM) 15% · Top 25%
Operating margin (TTM) 19% · Top 25%
Revenue growth 1% · Below median
Dividend yield (TTM) 2.7% · Above median
Debt / equity 0.01× · Lower than 75% of peers

Valuation Multiples vs Chemicals median · lower = cheaper

P/E (TTM) 8.6× · Cheaper than 75% of peers
P/B 1.13× · Cheaper than median
P/S (TTM) 1.31× · Pricier than median
P/FCF 0.1× · Cheaper than 75% of peers
EV/EBITDA 5.8× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 83 · sector 0
FUTURE 6 · sector 20
PAST 54 · sector 20
HEALTH 100 · sector 94
DIVIDEND 55 · sector 33

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.

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Navin Fluorine International Limited NAVINFLUOR ₹8,357 ₹2,146 -74%
506285 506285 ₹4,048 ₹1,589 -61%
Kansai Nerolac Paints Limited 500165 ₹209.25 ₹80.51 -62%
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Frequently asked questions

Is GHCL Limited (GHCL) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ₹589.84 versus a price of ₹429.00, about +37% (undervalued).
What is the fair value of GHCL?
Our model-based fair value for GHCL Limited is ₹589.84 (as of Aug 13, 2026), built from audited fundamentals. The current price is ₹429.00.
What is the quality score of GHCL?
GHCL Limited has a Quality Score of 66/100. 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 (GHCL)?
GHCL Limited reported trailing-twelve-month revenue of about ₹30.6B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of GHCL?
The net profit margin of GHCL Limited is about 15.4%, meaning it keeps roughly 15.4% 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 2.74% relative to its recent price (as of Aug 13, 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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