Gujarat Fluorochemicals has added large capacity which should aid in winning market share. Ref-gas should benefit from tight-supply situation; R-32 capacity could commission in FY27E. The brokerage’s assumption under appreciates battery chemicals potential; and sees healthy balance sheet and return ratios. Maintain Buy.
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ICICI Securities Report
Gujarat Fluorochemicals Ltd. is at the cusp of inflection in earnings growth with revenue / Ebitda / profit after tax compound annual growth rate estimated at 20.4%/ 33.4%/ 46% over FY25-27E.
The quality of earnings may also be better with fluoropolymers contributing 67% / 70% to incremental revenue/ Ebitda. Fluoropolymers business has tailwinds from industry consolidation, destocking impact creating a low base in past two years, rise in demand particularly in India, and limited capacity addition by the remaining western players.
Gujarat Fluorochemicals has added large capacity which should aid in winning market share. Ref-gas should benefit from tight-supply situation; R-32 capacity could commission in FY27E.
Our assumption under appreciates battery chemicals potential; we see healthy balance sheet and return ratios. Maintain Buy.
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. Read more on Research Reports by NDTV Profit.ICICI Securities is positive on Gujarat Fluorochemicals, ratains ‘Buy’ on the stock, sees 12% upside. Read MoreResearch Reports
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