GNFC Rallies On Strong Q4: ‘Buy On Dips’, Says SEBI RA Prameela Balakkala

Gujarat Narmada Valley Fertilizers & Chemicals (GNFC) shares surged 4% on Monday after the company delivered a strong March quarter performance, with a sharp jump in profitability despite muted revenues.

SEBI-registered analyst Prameela Balakkala noted that GNFC’s latest numbers underscored both financial strength and technical momentum.

For the March quarter, GNFC reported a net profit of ₹211 crore, a 62% year-on-year increase, even though revenue dipped slightly by 1.8% to ₹2,177 crore. 

Operational efficiency was the standout, with EBITDA jumping 65.5% to ₹240 crore and margins expanding to 11.7% from 6.9% a year earlier — supported by a fall in feedstock and fuel costs.

Despite challenges at the Dahej plant and flat revenue trends, GNFC maintained a strong balance sheet, ending the year with ₹2,194 crore in cash and just ₹3 crore in debt. 

Full-year income stood steady at ₹8,393 crore. The company also highlighted a capital expenditure plan worth ₹2,200 crore, aimed at setting up a new nitric acid plant and a coal-based power unit—indicating a growth-focused outlook.

On the technical front, Balakkala highlights that GNFC broke past a key resistance at ₹520, retested it, and held above, suggesting building bullish momentum. 

The Relative Strength Index (RSI) at 57.31 pointed to a neutral-to-positive bias.

She pegs immediate support at ₹498 and a stronger institutional demand zone between ₹445 and ₹460. 

A sustained move above ₹520, especially with stronger volumes, could propel the stock toward a mid-term target of ₹578.

Balakkala advised long-term investors to consider dips toward the ₹445–₹460 zone as attractive accumulation opportunities, citing GNFC’s improving margins, minimal debt, and capacity expansion plans underpinned by government support through the NBS (Nutrient-Based Subsidy) scheme.

https://stocktwits.com/Prameela_Balakkala/message/615835264

However, retail sentiment on Stocktwits remained ‘bearish’, suggesting traders remained cautious despite the improved fundamentals. 

Year to date, GNFC shares have declined around 4%.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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