Prabhudas Lilladher's research report on Gujarat Fluorochemicals
Gujarat Fluorochemicals reported consolidated revenue from operations of Rs12.3bn, marking an 8.1% YoY and 6.7% QoQ increase. This growth was primarily driven by an 11% YoY rise in the Fluoropolymers segment, attributed to volume growth in new fluoropolymers. Prices in this segment remained stable during the quarter. For FY26, management has guided 25% growth, supported by new capex and volume growth due to the exit of a key competitor from the market. The Fluorochemicals segment registered 8% YoY growth, aided by a modest rise in R-22 prices. Management expects further price appreciation due to global production quota reductions. The management expects R-32 commercial sales to start from H2FY26. The Specialty Chemicals division remained stable, with further improvements in volumes and margins anticipated.
Outlook
However, stock appears richly valued at current levels and is currently trading at 62x FY27 EPS. We maintain “REDUCE” rating on the stock, with target price of Rs3,541.
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