GHCL Ltd. is a leading Chemicals & Textiles company. The company is amongst the global leaders in manufacture and development of different varieties of Soda Ash. Soda Ash is an essential ingredient in the manufacture of detergent, soap, glass, sodium salts and dyes. It is widely used in textiles, paper, metallurgical industries and desalination plants. The Textile division at GHCL is a vertically integrated operation that manufactures premium quality Yarn, Griege Fabric and Home Textile products like Bed Linen, Curtains, Madeups and Cotton Yarn.
The two Spinning units located in Tamil Nadu have an installed capacity of 125,000 spindles manufacturing 100% Cotton and Polyester Cotton yarns. The manufacturing units at the Textile Company have state-of-the-art textile machinery from Reiter, Switzerland and Schlafhorst, Germany, among others to lend that cutting edge to Quality.
The production facilities are ISO 9001-2000 certified and also have been awarded the OKO-TEX certification from CITIVE, Portugal. Wind-power is used for generating and meeting out the energy requirement for the spinning operations, which is not only cost effective but also eco-friendly. See the company website: www.ghclindia.com
The stock is giving a very high dividend yield consistently, and at current market price of just 44.15, this stock is available at a steal. The PE ratio is just around 4. The Book Value as of March, 09 is a whopping 121.38 (source: religare technova) The stock has seen highs of around 185 in the December, 2007 Bull run and used to trade consistently around that level in the years 2006 & 2007. At current price this stock is trading at a deep discount to its peers like Tata Chemicals, United Phosphorus etc. and merits an investment buy.