Gujarat Fluoro
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Gujarat Fluorochemicals is positioned for a multi-year growth phase, driven by robust demand in its Fluorochemicals and Fluoropolymers segments. Management's focus on capacity expansions in R32 and R134a, alongside scaling its Battery Chemicals division, underscores a strategic pivot towards high-growth applications, particularly in the electric vehicle (EV) sector. This aligns with Vista's forecast of accelerating revenue growth and improving margins, supported by a favorable product mix and high utilization rates. However, execution risks related to supply chain volatility and the commercialization of battery materials remain critical watchpoints. The specialty chemicals industry is experiencing structural growth, which bodes well for Gujarat Fluorochemicals, although competitive pressures and geopolitical tensions could pose challenges. Over the next 12-24 months, key opportunities include the scaling of production for battery materials and the potential for significant revenue contributions from the EV platform. Conversely, headwinds may arise from margin pressures due to early-stage losses in battery materials and competition from established players. Overall, Gujarat Fluorochemicals is well-positioned to capitalize on the growing demand for specialty chemicals, with a target price reflecting an expected upside of approximately 28.5%
Why We Like This Stock
- Strong demand in Fluorochemicals and Fluoropolymers segments supports revenue growth
- Strategic capacity expansions in battery materials align with market trends towards EVs
- Management's focus on high-growth applications positions the company for long-term profitability
Things To Watch Out For
- Execution risks related to supply chain volatility could impact growth
- Early-stage losses in battery materials may pressure overall profitability
- Competitive pressures from established players in the battery materials market pose challenges
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 4,281 | 4,737 | 4,996 | 5,652 | 6,207 |
| Profit Before Tax (Cr.) | 602 | 714 | 827 | 1,091 | 1,165 |
| PBT Margin | 14.1% | 15.1% | 1655.3% | 19.3% | 18.8% |
| Net Profit (Cr.) | 465 | 523 | 583 | 768 | 820 |
| Earnings Per Share | 42.3 | 47.6 | 53.0 | 69.8 | 74.6 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Deven Choksey | ▼ Sell | 3,373 | 09-Jun-2026 |
| Elara Capital | ▲ Buy | 5,221 | 21-Jul-2026 |
| ICICI Securities | ► Hold | 4,250 | 27-May-2026 |
| Prabhudas Liladhar | ► Hold | 4,498 | 13-Aug-2026 |
Company Overview
Show Company Profile
Gujarat Fluorochemicals Limited engages in the manufacture and trading of refrigerant gases, fluorochemicals, fluoropolymers, battery chemicals, wind energy, and renewable energy solutions in India, Europe, the United States, and internationally. It provides caustic soda, carbon tetrachloride, chlorine, methylene di chloride, hydrochloric acid, sodium hydrogen sulphate, hydrogen gas, fluorspar, chloroform, and anhydrous hydrogen chloride. The company offers its products under the INOFLON, FLUONOX, INOFLAR, INOLUB, and Refron brands. It provides its products to agrochemicals, pharmaceuticals, battery materials, and other sectors. It also engages in design, develop, manufacture, export, import, assemble, fit, repair, convert, over-haul, alter, maintain, and improve all types of semiconductor devices, integrated circuits, electronic components, software, devices, technologies, equipment and appliances, and electronic devices. The company was formerly known as Inox Fluorochemicals Limited and changed its name to Gujarat Fluorochemicals Limited in July 2019. The company was incorporated in 1987 and is headquartered in Noida, India. Gujarat Fluorochemicals Limited is a subsidiary of Inox Leasing and Finance Limited.