GSFC had filed a complaint with Commerce Ministry, for import in India, of Caprolactum and Melamine from European Union, Korea, Russia and Thailand, at a lower rate than its cost of production, with supporting data thereto, while cognizance of same has been taken, with Ministry having issued order on 30-9-2020, of anti dumping investigation of these products.

GSFC had produced 83,093 MT of Caprolactum and 29,215 MT of Melamine last year, while GSFC has capacity of 90,000 MT and 40,000 MT respectively for these products.  GSFC meets 56% requirement of India's Caprolactum while 44% is met by imports. GSFC also meets 29% requirement of India's Melamine while 71% is met by imports. So, there is seen huge operating leverage benefits, coupled with margin expansion seen flowing to GSFC, if anti duty seen being imposed, which is most likely soon.  

GSFC in its core business on Complex Fertiliser, having capacity of 16.50 lakh MTPA, being second largest producer in India (after Coromandel International), also seeing record production, with margin expansion, due to low captive sourced raw material and better off take with better realisation.

Maybe sensing this, share price has risen from Rs.70 to Rs. 85 in last 3 weeks. Infact, we as well recommended this stock on New Year day to our members, in LG Section, in Member Zone, at Rs. 72.50.