Gujarat Fluorochemicals (GFL) posted robust outcomes with robust realisation in caustic soda and PTFE that boosted profitability, highlighted brokerage home Edelweiss. The brokerage lately initiated protection on Gujarat Fluoro shares because it believes that GFL presents robust development alternative in fluoropolymers and is a probable beneficiary of robust positioning in fluorine chemistry.
As enterprise the state of affairs improves in Q4FY22, Edelweiss has maintained its ‘Purchase’ advice on the multibagger inventory, that has rallied over 380% in a 12 months’s interval, with a goal value of ₹3,447 per share. The brokerage believes that with an encouraging outlook and better realisation in Q4FY22, Gujarat Fluoro will possible beat its FY22 estimates.
The unavailability of uncooked materials impacted the fluoropolymer enterprise within the third quarter (Q3), whereas the fluorospeciality chemical substances enterprise was impacted as a result of a plant disruption in the course of the quarter, the notice highlighted.
“Administration stays assured about robust choose up in earnings development momentum because it addresses uncooked materials issuesin fluoropolymers and robust pricing surroundings for PTFE (up by 20-25% in Q4FY22) whereas caustic soda costs have stabilised at increased degree. Demand state of affairs for PTFE and fluoropolymers stay encouraging. GFL is predicted to learn from the proposed capability growth in these verticals in FY23,” Edelweiss’ notice added.
Additional, Gujarat Fluoro is trying to scale back its debt, pushed by stable money circulate technology in FY22. It additionally expects to get its advances again from Inox Wind by June 2022, if it fails to obtain regulatory approval for the wind energy plant, the brokerage highlighted.
Gujarat Fluorochemicals Restricted (GFL) is an Indian Chemical compounds Firm with over 30 years of experience in Fluorine Chemistry. The specialty chemical inventory has surged over 13% in 2022 (year-to-date or YTD) to date.
The views and suggestions made above are these of particular person analysts or broking corporations, and never of Mint.
Supply: Live Mint