Multibagger Alert: This chemical manufacturer has given returns of 390% in the past year!

Multibagger Alert: This chemical manufacturer has given returns of 390% in the past year!

by 5paisa Research Team Last Updated: Dec 15, 2022 - 07:29 am 38.9k Views
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The company enjoys undisputed leadership in the fluoropolymers’ domestic market segment and competes globally.

Chemicals major, Gujarat Fluorochemicals Limited has given investors stellar returns of 390.75% over the last year. The share price of the company stood at Rs 568.75 on January 14, 2021, and since then, it has more than quadrupled investor wealth.

Headquartered in Noida, Gujarat Fluorochemicals Limited (GFL) engages in the manufacture of chemicals. GFL has successfully leveraged its capabilities to foray into high growth potential markets of fluoropolymers, which are increasingly seeing application in new age products like EVs, solar panels etc. It has also strengthened its position in fluoro-speciality chemicals and is likely to witness strong growth in these businesses with solid entry barriers.

On a quarterly consolidated front, GFL reported revenue at Rs 1007.48 crore in Q3FY22, up 58.87% YoY and 4.51% QoQ. PBIDT (Ex OI) came in at Rs 319.02 crore, up 123.87% YoY and 7.92% QoQ. GFL’s business model is transitioning toward high-end value-added fluoropolymers and speciality chemicals that enjoy higher margins. The corresponding margin stood at 31.67% in Q3FY22 as compared to 22.47% in Q3FY21 and 30.66% in Q2FY22. PAT came in at Rs 201.27 crore, up 141.84% YoY but declining marginally by 1.79% on a QoQ basis.

In the absence of any significant players in the fluoropolymers’ domestic market, GFL enjoys undisputed leadership in this segment and competes globally. The company is on a strong growth trajectory owing to its leading position in complex and future chemistries based on fluorine and fluoropolymers, its backwards-integrated business model and its investment in product development for future technology for batteries for EVs, solar panels etc. over the last 2-3 years.

On Tuesday, the stock of Gujarat Fluorochemicals Limited closed at Rs 2976.50, up by 6.64% or Rs 185.35 per share as compared to a 1.46% gain in the benchmark index. The 52-week high of the scrip is recorded at Rs 3000 and the 52-week low at Rs 525 on the BSE.

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