Gujarat Fluorochemicals shares sank over 3.5 percent in trade on August 14, as the Street digested its underwhelming results for the quarter ended June.
The industrial refrigerant manufacturer saw its net profit plunge 46.3 percent, clocking in at Rs 108 crore for the June 2024 quarter, compared to Rs 201 crore in the same period of 2023.
Meanwhile, revenue also fell 2.73 percent to Rs 1,176 crore from Rs 1,209 crore in the corresponding quarter of the previous year.
At 2 pm, shares of the company were down 3.2 percent at Rs 3,223.7 per share on the NSE.
Gujarat Fluorochemicals reported weak Q1FY25 results as revenue inched down mainly as revenue of the fluoro chemicals business dipped 10 percent due to headwinds from Chinese dumping in specialty chemicals and supply disruptions hurt fluoropolymers.
"EBITDA plunged 25 percent on-year due to lower gross margin (down 520 bps YoY) while PAT plummeted 46 percent due to higher depreciation and interest cost," said Nuvama Institutional Equities.
The brokerage maintained its buy call, but did not change its target price of Rs 4,697 as short-term pressures continue in the specialty chemicals sector.
As continued dumping from China resulted in muted demand, Prabhudas Lilladher said, "The stock is trading at 50x FY26 EPS. We maintain our “reduce” rating on the stock, with target price of Rs 2,907."
Emkay Global believes that new capacities being commissioned in current year will take time to ramp up. "We expect FY23 EBITDA to be achieved in FY26, with ramp-up in new fluoropolymer capacities for newage applications and start of commercial supplies of EV products," said the brokerage. It reiterated its 'sell' call, with a price target of Rs 2,800 apiece.
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