Alufluoride poised for strong earnings growth aided by new contract cycle and new plant

Alufluoride: A transformational story at a fair price

Aluflouride is a strong import substitution play and likely to be the beneficiary of the Make in India initiative

Alufluoride: A small cap with a unique proposition

the current valuation keeps us positive as the stock is trading at 3.6 times estimated earnings for FY21 (EV/EBITDA of 3.2 x for FY21), which is at a discount to the non-ferrous sector

Ideas for Profit: Alufluoride rerates on improving demand outlook; accumulate on decline

While the capacity expansion plan has slightly delayed, order pipeline and a potential quick ramp up of utilization makes the prospects for topline growth promising. Operational efficiency measures are another earnings tailwind which investors can keep an eye at.

Alufluoride Q4: Positive volume & pricing outlook; efficiency gain measures to aid margins

The stock is currently trading at 9.9 times/5.5 times estimated earnings for FY19 & FY20 respectively and at an enterprise value of 4 times estimated EBITDA for FY20, This is at a discount to the current valuation multiples for the non-ferrous sector.

Capacity expansion, contract renewal cycle could trigger re-rating for Alufluoride

New capacity of about 4500 MT would be operational in Q1FY19, taking the Aluflouride's overall capacity to 12,000 MT.

Alufluoride gains from the improving prospects for end market aluminum

Alufluoride, which like its industry peers was struggling with weak pricing environment for the last few years, has witnessed a good traction in its earnings. Its healthy balance sheet, along with a niche production process positively positions it for an investment assessment.