ICICI Securities downgrades Gujarat Fluorochemicals to Hold, revises target price to Rs 3,790

ICICI Securities has downgraded Gujarat Fluorochemicals to Hold from Buy earlier, with a revised target price of Rs 3,790 (earlier Rs 4,160). The current market price of Gujarat Fluorochemicals is Rs 3821.4. Gujarat Fluorochemicals, incorporated in 2018, is a Mid Cap company with a market cap of Rs 42064.86 crore, operating in the chemicals sector.

Gujarat Fluorochemicals' key products/revenue segments include Fluorochemicals, Bulk Drugs & Chemicals, Export Incentives, Other Operating Revenue, Scrap, Carbon Credit for the year ending 31-Mar-2024.

Financials

For the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 1251 crore, up 7.66% from last quarter Total Income of Rs 1162 crore and up 8.66% from last year same quarter Total Income of Rs 1151.32 crore. The company has reported net profit after tax of Rs 191.00 crore in the latest quarter.

The company's top management includes Mr.Devendra Kumar Jain, Mr.Chandra Prakash Jain, Mr.Om Prakash Lohia, Mr.Shailendra Swarup, Mr.Shanti Prashad Jain, Mr.Niraj Agnihotri, Mr.Sanath Kumar Muppirala, Dr.Bir Kapoor, Mr.Vivek Kumar Jain, Ms.Vanita Bhargava. Company has Patankar & Associates as its auditors. As on 31-03-2025, the company has a total of 11 crore shares outstanding.

Investment Rationale
Gujarat Fluorochemicals' Q4FY25 print was impacted by lower sales of bulk chemicals with production disrupted for 20 days due to incident in Dahej. It expects fluoropolymers revenue to grow 25% in FY26 with higher volume in new fluoropolymers, and steady rise in PTFE volume. R-32 capacity commissioning has been expedited, and may now start in H2FY26, therefore, supporting fluorochemicals. GFL remains confident of approvals, and contracts in battery chemicals for LiPF6 salt, and binders immediately with potential billing to commence in H2FY26. ICICI Securities cut the EPS for FY26/27E by 3-9% and reduced target price to Rs 3,790 (from Rs 4,160), valuing the stock at FY28E P/E multiple of 30x (unchanged); downgrade to HOLD (from Buy).

Promoter/FII Holdings
Promoters held 62.58 per cent stake in the company as of 31-Mar-2025, while FIIs owned 4.63 per cent, DIIs 10.7 per cent.