KR Choksey's research report on Gujarat Fluorochemicals
During the quarter GFL’s revenue came at INR 10,738 Mn (+27.78% YoY / +6.87% QoQ). The growth was mainly led by robust demand for its fluoropolymers(PTFE), followed by volumes and prices of Ref gas which has marginally improved during the quarter. For FY22, the consolidated revenue stood at INR 39,536 (+49.16% YoY). On operational front EBITDA stood at INR 3,315 Mn (+70% YoY / +5.10% QoQ), with OPM at 30.87% (+767 bps YoY/-55 bps QoQ). Elevated energy prices dented the margins QoQ. Net Profit stood at INR 2,185 Mn against INR 1,102 (+98%) on YoY basis and (+8.54% QoQ), with NPM at 20.35% (+723 bps YoY/+29bps QoQ). The company has declared a final dividend of INR 2 per share.
We continue to maintain ‘BUY’ recommendation on the stock and apply P/E multiple of 31x to its FY24E earnings, which yields an increased revised target price of INR 3,215 per share.
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