AgenciesThe brokerage is of the view that the company has created a niche for itself in its fluorochemicals business and is better poised to explore markets for more value added products including in sunrise sectors like EVs while continuing to gain from its backward integrated and persified businesses.

Anand Rathi has buy call on Gujarat Fluorochemicals with a target price of Rs 3910. The current market price of Gujarat Fluorochemicals is Rs 3219.6. Time period given by analyst is 1 year when Gujarat Fluorochemicals price can reach defined target.

Gujarat Fluorochemicals, incorporated in the year 2018, is a Mid Cap company (having a market cap of Rs 35187.70 Crore) operating in Chemicals sector.

Gujarat Fluorochemicals key Products/Revenue Segments include Other Products, Caustic Soda, Gases Refrigerant, Other Operating Revenue, Export Incentives, Scrap for the year ending 31-Mar-2022.

Financials

For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 1485.59 Crore, up 9.22 % from last quarter Total Income of Rs 1360.17 Crore and up 47.07 % from last year same quarter Total Income of Rs 1010.12 Crore. Company has reported net profit after tax of Rs 357.23 Crore in latest quarter.

The company’s top management includes Mr.Devendra Kumar Jain, Mr.Sanath Kumar Muppirala, Mr.Vivek Kumar Jain, Mr.Sanjay Borwankar, Ms.Vanita Bhargava, Mr.Chandra Prakash Jain, Mr.Om Prakash Lohia, Mr.Shailendra Swarup, Mr.Shanti Prashad Jain, Mr.Niraj Agnihotri, Mr.Jay Mohanlal Shah. Company has Patankar & Associates as its auditors. As on 30-09-2022, the company has a total of 11 Crore shares outstanding.

Investment Rationale

The brokerage is of the view that the company has created a niche for itself in its fluorochemicals business and is better poised to explore markets for more value added products including in sunrise sectors like EVs while continuing to gain from its backward integrated and persified businesses.

Also, the company is significantly reducing its debt and strengthening its balance sheet aiding long term growth.

Promoter/FII Holdings

Promoters held 66.08 per cent stake in the company as of 30-Sep-2022, while FIIs owned 4.1 per cent, DIIs 3.9 per cent.