From Rs 581 to Rs 3092: This chemical manufacturer has turned into a multibagger in the past year!

The company enjoys undisputed leadership in the fluoropolymers’ domestic market segment and competes globally.

Part of the INOX Group of companies, Gujarat Fluorochemicals has turned multibagger in the past year by delivering a stellar return of 431.36 per cent to its shareholders. The stock closed at Rs 3092 on February 07, 2022, from a low of Rs 581.90 on February 05, 2021. 

In the quarter ended December 2021, GFL reported topline growth of 58.87 per cent YoY and 4.51 per cent QoQ to Rs 1007.48 crore. On the operational front, the company recorded a profit of Rs 319.02 crore, up 123.87 per cent YoY and 7.92% QoQ. The corresponding margin stood at 31.67 per cent in Q3FY22 compared to 22.47 per cent in Q3FY21 and 30.66 per cent in Q2FY22. The company’s bottom line stood at Rs 201.27 crore, up 141.84 per cent YoY but declining marginally by 1.79 per cent on a QoQ basis.  

GFL enjoys undisputed leadership in the domestic fluoropolymers market and is able to compete globally in this space. It has been on a strong growth trajectory due to its leading position in the complex chemistries based on fluorine and fluoropolymers. There is also substantial demand for its new fluoropolymers, namely, FKM, PVD and MicroPowders. The company is undertaking the installation and commissioning of new projects and additional capacities to support this demand. The same is expected to come online towards Q1FY23. Given existing growth prospects in this business, there has been a substantial run-up in the share price in the last year. 

On Monday, the stock of Gujarat Fluorochemicals Limited closed at Rs 3092, down by 2.26 per cent or Rs 71.40 per share compared to a 1.75 per cent decline in the benchmark index. The 52-week high of the scrip is recorded at Rs 3,200 and the 52-week low at Rs 525 on the BSE.