The shares of Gujarat Fluorochemicals started trading marginally lower at Rs 2,769 levels. In a month the stock has shed 12 percent in a month. However, in a two years time frame, the stock has delivered a multibagger return of 387 percent.
Gujarat Fluorochemicals Limited (GFL) is an Indian Chemicals Company that holds expertise in Fluoropolymers, Fluorospecialities, Refrigerants, and Chemicals, catering to the material requirements.
The company is set to announce its Q3 results on February 7th, 2023. In Q2FY23, the company reported a total revenue of Rs 1,461.34 Crore which has increased consistently for the last five quarters. Their net profit has also been increasing and was at Rs 357.23 Crore in the period.
The company has a market capitalization of Rs 30,509 Crore and a dividend yield of 0.14 percent. In addition to that, the company is undervalued in the market as the TTM PE of the stock is 27.98 while the sectoral PE is at 46.01.
The promoters of the company hold a 63.81 percent stake and have pledged 2.31 percent of it. Foreign Institutional Investors (FIIs) hold a 5.75 percent stake. Ace investor Akash Bhanshali holds 54,03,036 shares or a 4.92% stake with a total holding value of Rs 1,500.6 Crore in the company.
Domestic brokerage firm ICICI Securities has a ‘Buy’ call on the stock with a target price of Rs 4,270 per share which represents an upside of 55% from the current levels.
The Fluoropolymers business is likely to undergo a major shake-up from rising regulatory concerns due to the use of PFAS-class products. It will help GFL move up in the fluoropolymers value chain which will likely aid realization/cushion any price decline, the brokerage highlighted.
Written by Anoushka Roy
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