Gujarat alkali sets a record. Stocks are magnified by 51% in one month

Shares of Gujarat Alkalies and Chemicals (GACL) hit a record high of 959 rupees, up 7 per cent over BSE in trade during Friday.

The stock is up 12 percent in the past two trading days after the company announced the partial start-up of its caustic fumigation unit (CEU) through its joint venture (JV) GACL-NALCO Alkalies & Chemicals (GNAL). On Thursday, the stock surpassed the previous high of Rs 932 touched in January 2018.

GNAL is a joint venture between GACL and National Aluminum Corporation (NALCO) formed to construct an 800 t/d caustic soda plant along with a 130 MW power plant in Dahej. GNAL is a physical subsidiary of the company.

GNAL has successfully completed the start-up of 200 TPD (tons per day) CEU along with the required boiler and facilities at the captive cogeneration power plant and produced 100 metric tons of caustic soda wash (47 percent rayon grade). The product was filled into tanks and sent out. With the above, the CEU is partially operational, the company said in the exchange file.

In the past month, the stock has outperformed the market and is up 51 percent, compared to a 5 percent gain in the S&P C Sensex. Last year, it rose 170 percent, versus an 18 percent rise in the benchmark.

GACL deals in the marketing of caustic soda (lye, flakes and pills), liquid chlorine, hydrochloric acid, chloromethane, hydrogen peroxide, and caustic potash (lye and flakes), among others. All plants are combined in such a way that part of the final product of one plant is consumed as a raw material in the other to produce more value-added products.

Thus, the company has some leverage over its competitors due to its integrative philosophy. As a valuable addition to its hydrochloric acid, the company has commissioned polyaluminium chloride (PAC) in the Vadodara (coelho) complex, thus, the company is able to capture a large domestic market for various grades of PAC. Export of PAC (powder) has also been increased, where the achievements are promising, GACL said in its annual report for fiscal year 21.

01:22 p.m.; The stock rose 6 per cent at Rs 949, compared to a 0.55 per cent gain in Sensex. 2.3 million shares of aggregate stock were traded over the counter on the NSE and BSE exchanges.

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