The day marks the golden jubilee year of the formation of the state of Gujarat, which was separated from the erstwhile state of Bombay Presidency on the 1st May 1960. Ever since its formation as a separate state, Gujarat has been thriving to be on the forefront of numerous socio-economic platforms, then let it be agriculture, industries, services or civil society. Gujarat has successfully marked its significance not only domestically but internationally too.
Tracking the golden jubilee celebrations of the 50 glorious years of its existence, Gujarat has emerged as the only state in India to have some of the large public sector enterprises listed on the bourses and yielding heavy returns for the investors. As many as six state PSEs are on the public listings and have witnessed significant appreciation of the stock prices over the years.
The six PSEs, namely Gujarat Mineral Development Corporation (BOM:532181) (GMDC), Gujarat State Petronet Ltd (BOM:532702) (GSPL), Gujarat State Fertilizers & Chemicals Ltd (BOM:500690) (GSFC), Gujarat Alkalies & Chemicals Ltd (BOM:530001) (GACL), Gujarat Narmada Valley Fertilizers Company (BOM:500670) (GNFC) and Gujarat Industries Power Company Ltd (BOM:517300) (GIPCL) have emerged as the Navratna companies for the state and the investors.
GMDC, a mining major operates in two segments, mining and power. The company produces lignite, bauxite, calcined bauxite, fluorspar and manganese ore. GMDC is one of the prominent mining and mineral processing companies in India. The company stocks have appreciated by 159.5% in past one year from Rs.54.50 to Rs.137 in the recent trades on the Bombay Stock Exchange (BSE). Meanwhile, the benchmark index, Sensex has surged by 98.5% over past one year to the current level of 17,558 points.
GMDC has been consistently giving dividends to the investors over the years. The company has posted a net profit of Rs.71.19 crore for the quarter ended December 31, 2009 as compared to Rs.74.71 crore for the quarter ended December 31, 2007. Total Income has increased from Rs.262.88 crore for the quarter ended December 31, 2008 to Rs.282.03 crore for the quarter ended December 31, 2009.
Gujarat’s largest caustic chlorine maker, GACL made a history in the state’s chemical sector when the company joined hands with European chemical major, Dow Europe GmbH for setting up an environment-friendly chloromethane plant at Dahej with an investment of Rs.600 crore. The project is underway and expected to be commissioned in early 2011.
In past one year, GACL stocks have gained 57% from Rs.82.70 in the early May 2009 to Rs.117.20 in the latest trades on BSE. The company has a market capitalization of Rs.8.61 billion as on Friday, April 30, 2010.
GSPL, is a pioneer in developing energy transportation infrastructure and connecting natural gas supply basins and LNG terminals to growing markets. The company stocks have yielded robust returns for the investors as the stock price has appreciated by over 138% YoY to Rs.95.30 in recent trades on BSE.
GSPL is a future hope for the industrial growth in Gujarat as the company is developing some of the key industrial infrastructure projects like gas grid development. The company has commissioned various pipeline projects across the state.
Gujarat is once again at an advantage as the state has one of the world’s largest single-stream ammonia-urea fertilizer complexes at GNFC. The company has developed much beyond plant food through a process of horizontal integration. Chemicals/petrochemicals, energy have already been added to the company’s kitty.
GNFC stocks have appreciated by 78.66% over past one year to the current level of Rs.120.15, giving heavy returns to the investors in the long run. The company has the market capitalization of Rs.18.67 billion as on 30th April, 2010.
Another fertilizer and chemicals major, GSFC has been leading fertilizers provider to the agriculture in India. The fertilizer products include urea, ammonium sulphate, di-ammonium phosphate, ammonium phosphate sulphate and traded fertilizer products. GSFC also manufactures some of the speciality chemicals for the industrial purposes, that include caprolactam, nylon-6, nylon filament yarn, nylon chips, melamine and polymer products. Initially, with the equity structure, comprising of 49% of State Government participation and 51% of Public and Financial Institutions, today the Government’s involvement has come down to 38.4%.
The company stock prices have swollen to Rs.259.90 on 30th April 2010 rising 131% over past one year with company’s market capitalization soaring to Rs.20.71 billion.
In order to attain self sufficiency in power generation to provide good quality and uninterrupted power to the state industry and agriculture, Gujarat, over past several years, has been emphasizing on developing larger power generation capacities. GIPCL is a step in this direction. The company, however, has the total generation capacity at 5560 MW at its two power plants located in Vadodara and Mangrol.
Presently, two units of 125 MW SLPP phase II expansion project with expansion of lignite mines is underway and the project is expected to be commissioned in the current fiscal. The state government has consented to allot 500 MW expansion Phase-III to GIPCL. The site selection, environmental clearances and other formalities are in the advance state of progress.
The company stocks gained by 97% over past one year leading the company’s total market capitalization to Rs.17.92 billion as on 30th April 2010. The company stocks ended the last trading session at Rs.118.50 on BSE.
Looking at the robust performance by the state PSEs has proved that despite being public sector enterprises, the companies have flared well in comparison to other PSUs in the country. Surprisingly, no other state has achieved such significant milestone in the field of industrial development.
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