GAEL Share price

Gujarat Ambuja Exports Limited (GAEL) share price is in Bullish Momentum – Stock on Move

GAEL Share Price Technical Analysis:

GAEL share price (Gujarat Ambuja Exports Limited) is expected to move up sharply with the support of the broader market. On the daily chart the counter above all its major moving averages with strong trading volume. The stock completed its correction and formed a bottom at the 228 level. Since then, the counter has been moving up while forming a flag pattern. The stock has strong resistance at the range of 319 to 341 level. Once it closes above 341 with strong volume it will again reach its all-time high of 394 level. One may invest at this level or in a dip for a long-term gain.

Momentum indicators ADX and MACD are looking bullish on the daily chart. On both daily and weekly charts, the stock is trading above super trend. GAEL’s share is trading at 15.4 Price to Earnings (PE) and available at 4.43 price-to-book (PB) value while sector PE is 45.63 PE and 9.04 PB. The debt-to-equity ratio of the company is at 0.13 times in FY22. The counter seems cheap in comparison to its sector valuation and debt-to-equity ratio. One can accumulate this stock at this level or on dips for long-term gain.

Gujarat Ambuja Exports Limited (GAEL) Fundamental Analysis:

Gujarat Ambuja Exports Limited (GAEL) is involved in the manufacturing of Corn Starch Derivatives, Soya Derivatives, Feed Ingredients, Cotton Yarn, and Edible Oils. GAEL serves the Food, Pharmaceutical, Feed and many other industries with a long-term growth strategy in the Agro-Processing sector. The company has 7 manufacturing plants across the country. GAEL exports more than 75 countries across the globe.

GAEL Share Price Financial Analysis:

Gujarat Ambuja Exports Limited (GAEL) recorded a growth of consolidated Revenue by 23% to reach INR 4705 Cr in FY21 from IMR 3817 Cr in FY20. The revenue reached INR 4724 Cr in FY22. As per the company presentation EBITDA has gone up by 92% from INR 291 cr to INR 561 cr during the same period. The company also recorded 12% of EBITA margin in FY 2021. The PAT of the company has gone up by 130% from INR 146 cr in FY 2020 to INR 338 cr in FY 2021. The EPS of the company has also increased from 14.7 in FY21 to 20.7 in FY22. However, with the growth in Indian GDP, the revenue of the company is likely to go up and hence the EPS.

Gujarat Ambuja Exports Limited (GAEL) Limited is a mid-cap company with a market cap of INR 7333 crores with a face value of INR 1. The return on capital employed is 30.5% while the return on equity is 25.1 percent. This data supports a strong financial performance and higher margins with a strong valuation of this counter. Promoters have remained constant with their holdings at 63.84 in Dec 2020 till Mar 2022. DII shareholding remains the same at 0.08 % from Dec 2021 to March 2022. However, FIIs have increased their holdings from 4.06% to 4.37% percent during this period.

Suggested Reading – Read other momentum stocks CARBORUNIV and, Jamna Auto Industries

Company Management:

Gujarat Ambuja Exports Limited (GAEL) is run by strong management and promoters. Manish Kumar Gupta is the chairman and managing director of the company. He is a new age entrepreneur with over 30 years of experience in management. Mr. Gupta is an agro-product expert. He spearheads initiatives for productivity enhancement, cost control, quality augmentation to drive the top line of the company.

GAEL Share Price Daily Chart
GAEL Share Price Daily Chart

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