GSFC has posted extremely good numbers for 3 months and 9 months ending 31-12-20, on which buy call was given by us on 5th February, 2021, in Member Zone in Little Gems section. PAT for 9 months ending 31-12-20, of GSFC is placed at Rs. 300.27 cr against Rs. 47.80 cr for same period last year, a rise of 528%.

GSFC is also Promoter of GNFC, holds 19.8% stake, while GNFC has also posted robust numbers for 3 months and 9 months ending 31-12-20. Hence, proportionate profits of GNFC are not added in the financial of GSFC, as to get qualified for it, as an Associate, GSFC must hold between 20% to 50% stake of GNFC.

Gujarat Government, being other promoter of GNGC holds 21.38% stake in GNFC. So, if Gujarat Govt sells 0.20% stake to GSFC, financial and valuation of GSFC will improve. GNFC has posted a PAT of Rs. 380 cr for 9 months ending 31-12-20. So, Rs. 76 crore would have got added in PAT of GSFC, if GSFC would have held 20% in GNFC, thus increasing EPS of GSFC by Rs.2.

Either Bad planning, or not realising it or lethargy, which is not captured by the Gujarat Govt, being promoter of GSFC & GNFC both, that too when even Governments having realised importance of better market cap of its listed companies.