GSFC Shares Surge 7%, Prabhudas Lilladher Forecasts Over 20% Upside

Gujarat State Fertilizers & Chemicals (GSFC) share price increased by almost 7% during Wednesday's early trading. Prabhudas Lilladher's technical analysts' target price suggests that stock might rise by more than 20%. Verify specifics.

Gujarat State Fertilizers & Chemicals share price (GSFC) increased by almost 7% during Wednesday's early trading. Share price of Gujarat State Fertilizers & Chemicals (GSFC) is still under scrutiny due to news reports indicating that government may provide some tax break for fertilizers. share price of Gujarat State Fertilizers & Chemicals (GSFC) began at ₹241.30, more than 3% higher than closing price of ₹233.75 day before. 

However, it continued to rise, reaching ₹250 levels on BSE, signifying gains of more than 7%. After corrections in May & early June, price of GSFC's shares has recovered substantially, despite company's declaration of unhappiness with its performance in March quarter. Industry has seen difficult FY24 due to monsoon falling short of forecasts & destocking cycle in global chemical business.

Weak sales caused GSFC to declare sharp 89 percent year-over-year (YoY) fall in its consolidated net profit to ₹24.43 crore in fourth quarter of 2023–2024. During reviewed quarter, GSFC's overall revenue dropped 16.34% YoY to ₹2,017.46 crores. Additionally, GSFC reported difficulties that led to decline in operating profit & sales growth, which in turn caused performance deterioration.

Nevertheless, meteorological departments' forecasts of better monsoon this year are cause for optimism. price of GSFC's shares is also rising.

According to Prabhudas Lilladher Pvt Ltd, price of GSFC share saw fair correction from 332 levels (in January 2024) to bottom at roughly 184 levels. share price of GSFC then rebounded, suggesting more robust upward trend to come.
According to technical analysts Prabhudas Lilladher, chart appears highly promising & could rise as high as 320 levels in near future.

RSI (Relative Strength Index) has hit oversold zone & then displayed trend reversal, indicating buying opportunity.

To Summarize

GSFC's stock rose by 7% amid potential tax breaks for fertilizers & optimism about better monsoon. Prabhudas Lilladher predicts 20%+ gain, targeting ₹320. Despite challenging FY24 & significant Q4 profit drop, technical indicators show bullish trend reversal, suggesting buying opportunity.