Chemicals player Gujarat Fluorochemicals Ltd's (GFL) shares tumbled five percent in trade on Wednesday, May 28, after the firm's standalone results came sharply under analyst expectations.
Gujarat Fluorochemicals reported consolidated revenue from operations of Rs 1,225 crore for the fourth quarter of FY25, marking a 7 percent increase quarter-on-quarter and 8 percent rise year-on-year.
Consolidated profit after tax stood at Rs 191 crore, reflecting a sharp growth of 52 percent quarter-on-quarter and 89 percent year-on-year. However, brokerages noted that a lower tax rate led to a spurt in PAT growth.
At 10.40 am, shares of the chemical company were trading at Rs 3,779.4, down by 5.3 percent on the NSE.
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GFL's Q4 standalone EBITDA was below street estimates. EBITDA grew by 42 percent YoY (-7 percent QoQ) because of a lower base in FY24 and a rebound in volumes of new fluoropolymers. The sequential decline was on account of a shutdown in CMS-1 plant in the bulk chemicals segment, resulting in ~15 percent production loss, said domestic brokerage Emkay Global.
The brokerage decided to retain its sell call with a target price of Rs 3,800 per share. "We believe the CMP fairly reflects optionality from the battery business, which we believe is a longer gestation business, given that the battery ecosystem will take time to develop globally."
Nuvama Institutional Equities said, "GFL’s Q4FY25 earnings print is modest, missing our sales/EBITDA expectations. Revenue growth of 8.1 percent YoY is a function of better fluoropolymer volumes offsetting the 15 percent YoY production loss in the Bulk Chemicals business."
The brokerage, however, maintained its buy rating, increasing the target price on the stock to Rs 4,749, up from Rs 4,666 per share.
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