CMP: 496

Gujarat State Fertilizers & Chemicals Limited manufactures fertilizers and chemicals in four product areas: Finished Products, Intermediate Products, Polymers and Fibre Products. The Company also maintains trading activities in nylon products, petrochemicals, industrial gases and plastics.

Gujarat State Fertilizers is a good bet in mid-cap space. Its currently trading at a P/E of 5 with good dividend yields of well over 1% in the last 12 months. Minimal liability. Revenues have grown steadily from 3318 Crores to 4755 Crores in the last 5 years. Profits have grown from 261 Crores to 750 Crores backed by strong NPM growth. NPM has grown from 8% to 16% in the last 5 years. Buy and hold for long term gains.