GHCL Stock Surges Despite Profit Decline
GHCL stock witnessed a significant surge on Friday, despite reporting a sharp decline in its Q1 net profit. The stock price jumped 11.6% to reach a high of Rs 628.50 during intra-day trading, defying the overall weak market sentiment.
This surge can be attributed to several factors. Firstly, the company announced the allotment of a large parcel of land for salt production, which is seen as a positive development for its future growth. Secondly, the recent imposition of a 10% import duty on solar glass is expected to benefit the domestic soda ash market, where GHCL is a major player.
Despite the decline in Q1 net profit, the company's management expressed optimism about the future. They highlighted the stable revenues and a 17% improvement in EBITDA, indicating strong fundamentals. Additionally, the robust domestic consumption of soda ash and the expanding solar glass industry are seen as promising opportunities for GHCL.
The stock has witnessed a remarkable rally this year, gaining 40% in just over four months. While it remains 20% below its 52-week high, the recent developments suggest further potential for growth.