Gulshan Polyols jumps 6% on securing PLI benefits for Goalpara plant

Shares of Gulshan Polyols rallied up to 5.65 per cent at Rs 185.10 per share on the BSE in Thursday’s intraday deals. Gulshan Polyols share price surged after the company received a production-linked incentive (PLI) of Rs 2 per litre for bio-ethanol with its Goalpara plant being the key beneficiary.  

 

“We hereby wish to inform that the Company’s 250 KLPD plant located at Goalpara, Assam have received in addition to the eligible benefits under Assam Ethanol Production Promotion Policy, 2021 (AEPPP Policy), A Production Linked Incentive (“PLI”) of Rs. 2/Litre of bio-ethanol initially for 3 years, which shall be effective prospectively by “Government of Assam”- Cabinet Meeting held on December 7, 2024,” the company said in an exchange filing on Wednesday.

 

Additionally, the company said it is expected to receive an estimated benefit of Rs 50 Crore over a period of three years which is over and above the incentives already being availed under the AEPPP Policy. 

 

“These incentives are expected to enhance our operational efficiency, support production growth, and contribute positively to the company’s overall performance,” the company said. 

 

Gulshan Polyols specialises in manufacturing a diverse range of chemicals derived from grain and minerals, catering to industries spanning toothpaste, alcohol, sweeteners, paints, paper, medicines, plastics, and personal care. The company operates across three key segments: Mineral Processing, Grain Processing, and Ethanol (Bio-Fuel)/Distillery.

 

Financially, Gulshan Polyols reported a 42.41 per cent decline in net profit to Rs 1.29 crore for the quarter ended September 2024, compared to Rs 2.24 crore in the same quarter of the previous year. However, sales grew by 43.09 per cent, reaching Rs 440.47 crore in September 2024, up from Rs 307.83 crore in September 2023.

 

The company has a total market capitalization of Rs 1,122.67 crore. Its shares are trading at a price to earnings multiple of 49.66 times and at an earning per share of Rs 3.53. 

 

At 12:45 PM; the shares of the company were up 2.17 per cent at Rs 179 a piece. By comparison, the BSE Sensex was trading 1.12 per cent lower at 79,287.09 level.