Stock of this agri products company has zoomed 85% in two months

Gujarat Ambuja Exports hit a new high of Rs 329.55, on rallying 10% on the BSE in Wednesday's intra-day trade, and has surged 29% in the past four trading days.

Shares of Gujarat Ambuja Exports (GAEL) hit a new high of Rs 329.55, on rallying 10 per cent on the BSE in Wednesday’s intra-day trade on the back of heavy volumes in an otherwise subdued market on expectation of improved business outlook. The stock of agricultural products has surged 29 per cent in past four trading days.

At 02:02 pm; GAEL traded 6.5 per cent higher at Rs 316.55, as compared to a 0.25 per cent decline in the S&P BSE Sensex. The trading volume at the counter jumped over three-fold with a combined 2.2 million equity shares changing hands on the NSE and BSE.

Clarifying on the incerase in trading volume at the counter, the company informed BSE that movement in the volume of shares is purely market driven and the management of the company is in no way connected with such increase in the volume of shares.

Meanwhile, in the past two months, the stock has zoomed 85 per cent from Rs 178, as against a 3.6 per cent rise in the benchmark index.

GAEL has three manufacturing segments, the products of which are having application for end use in multiple industries like food, pharma and paper. The company manufactures refined oil (mainly soya bean oil) and de-oiled cakes (DOC); maize products such as starch, glucose, sorbitol, dextrose monohydrate powder, and maltose dextrine powder (obtained through wet corn milling technology); and cotton yarn.

GAEL is one of the established players in agro and maize processing in India. The company is the largest player in maize processing with a capacity of 3000 tons crushed per day (TCD) and market share of around 30 per cent.

In January 2022, GAEL had announced its decision to setup a Greenfield corn wet milling plant at Sitarganj, Uttaranchal (Uttarakhand) with investment of Rs 400 to Rs 500 crore. The corn wet milling plant is being set up for the manufacturing starch, starch derivatives and polyols viz., sorbitol, maltitol and mannitol. The proposed capacity addition of 1000 TPD (Unit III) would be done within a period of 18 months.

In February 2022, the rating agency CRISIL Ratings had reaffirmed its ratings on the bank facilities of GAEL to ‘CRISIL AA-/Stable/CRISIL A1+'.

The ratings reflect GAEL's stable business profile, with improving share from maize processing segment. GAEL has seen increasing contribution from the relatively stable and high margin maize processing segment, where the company enjoys a strong market position, and is further solidifying the same through capacity additions. The company is planning capacity additions through commencement of new plant at Malda, West Bengal. The company is also planning to add ethanol capacity at their Chalisgaon and Hubli plant.