Gujarat Fluorochemicals will begin its battery chemical compounds plant in FY23, and a few revenues are more likely to move in from FY24, highlighted brokerage ICICI Securities. The chemical producer has elevated capex outlay by 10% for the subsequent two years on anticipation of a beneficial market.
The brokerage has elevated its EPS estimates by 1-10% over FY23E-FY24E and has raised its goal value on the specialty chemical inventory to ₹3,400 (from ₹3,356) with sustaining Purchase ranking. Gujarat Fluoro shares have given multibagger return in a yr’s interval of greater than 200%.
“Gujarat Fluoro has outlined sturdy development outlook for FY23 R125 and R142B to doubtlessly add 10-11 ktpa to gross sales amount from nil in FY22, good thing about 15-20% value improve in PTFE flow-through new fluoropolymers – growth in capability, and better gross sales in additional worthwhile merchandise (FKM and PVDF) and sure double-digit value improve and new plant commissioning in fluorospecialty phase, and rise in utilisation,” the word acknowledged.
Gujarat Fluoro is within the course of to develop capability to 13.2 ktpa. It expects to eat most capability in FY23, the place it’s seeing sturdy demand for FKM and PVDF, and likewise expects double-digit value improve in FY23, ICICI Securities added.
The corporate has raised its capex steering for FY23 by ₹2.5 bn to ₹11.5 bn. Increased capex is aimed to deliver ahead the capability growth for brand new fluoropolymers. It expects so as to add 4 ktpa capability on this phase.
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Supply: Live Mint