Microcap stock aiming to double its revenue to ₹300 Cr to keep on your radar

During Wednesday’s trading session, the shares of one of the leading FMCG players and India’s largest salt player in natural salt are in focus on NSE. The company aims to double turnover to Rs. 300 crores by FY27. 

Goyal Salt Limited (GSL) is primarily engaged in the business of manufacturing common salt and refining raw salts procured from sub-soil brine in Rajasthan for use as industrial salts and edible salts. GSL produces premium industrial and edible salts which include triple refined free-flow iodized salt, industrial salt, double fortified salt, and triple refined half-dry salt. 

Price Movement

With a market capitalisation of Rs. 295 crores, the shares of Goyal Salt Limited hit an intraday high at Rs. 165, up by around 3 percent, as against its previous closing price of Rs. 160.25. The stock hit its 52-week high at Rs. 241.7 on 16th October 2024, and compared to its current price level of Rs. 165, the stock is trading at a discount of nearly 32 percent.

Management Guidance

Goyal Salt Limited aims to double its turnover in two years to Rs. 300 crores with the new Gandhidham facility coming into commercial production by the end of March 2025. This expansion is part of the company’s broader strategy to scale its operations and strengthen its market presence. 

Facility Details

The Gandhidham plant, near the salt capital of Kutch, spanning 12 acres and with an investment of Rs. 80 crore, will significantly enhance Goyal Salt’s production capabilities. With a capacity of 4.5 lakh MT, the plant is currently in the trial run phase and is expected to be fully operational by the end of March 2025. This capacity expansion will enable Goyal Salt to increase its market share and solidify its leadership position in the industry. 

Also read: PSU infra stock to keep on you radar as it receives more than ₹5,750 Cr orders in March 2025

Management Comment

Pramesh Goyal, Managing Director, stated that the establishment of the Gandhidham facility will bring the company closer to both the western and eastern markets, reducing logistics costs and accelerating the delivery of finished products to customers. 

He emphasized that this move highlights the company’s strong commitment to expanding its market presence and consistently introducing new, high-quality products. The Gandhidham plant is progressing well and is expected to be operational by the end of the current financial year. 

Industry Outlook

India is currently the 3rd largest salt-producing country, a position that reflects its strong performance and growth potential. The Indian salt market is expected to grow at a CAGR of 4.8 percent during 2024-2029. Driven by increasing urbanization and changing consumer preferences, the premium salt segment is expected to show accelerated growth in the coming years. 

Financials

Goyal Salt reported a significant growth in revenue from operations, experiencing a year-on-year increase of nearly 45 percent, rising from Rs. 47 crores in H1 FY24 to Rs. 68 crores in H1 FY25. Similarly, the company’s net profit increased from Rs. 2 crores to Rs. 9 crores over the same period, representing an impressive rise of around 350 percent YoY. The company’s revenue from operations grew at a CAGR of around 25 percent between FY21 and FY24, while the net profit jumped by 108 percent CAGR over the same period. 

Key Financial Ratios

In terms of key financial metrics, Goyal Salt has a Return on Equity (RoE) of 15.6 percent and a return on capital employed (RoCE) of 17.8 percent. Additionally, the stock has a P/E ratio of 19.2, compared to the industry’s P/E ratio of 30.9, and its debt-to-equity ratio stands at 0.2. 

Written by Shivani Singh

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