Shares of Gujarat Fluorochemicals have given skyrocketing returns to its investors in the last 2 years. The stock, which made its market debut in 2019, before the pandemic hit, has surged over 800 percent in the last 2 years.
The scrip jumped from ₹321 in April 2020 to currently trade around ₹2,971, registering gains of as much as 825 percent in just 2 years. An investment of ₹5 lakh in 2020 would have turned into ₹46.25 lakhs currently.
Just in the last 1 year, the stock has advanced over 300 percent in comparison to a 19 percent rise in benchmark Nifty. The stock has a market cap of ₹32,131 crore and it recently hit its 52-week high of ₹3,204.50 on March 21, 2022.
Gujarat Fluorochemicals is a chemicals company engaged in manufacturing fluoropolymers, fluorospecialities, refrigerants and chemicals. The Company is a producer of industrial and essential chemicals for the pharmaceutical, agrochemical and plastic sectors.
The firm reported a profit of ₹204.65 crore in the December quarter (Q3FY22) against a net loss of ₹480.43 crore in the same quarter last year. Its total income came in at ₹1,035.88 crore in Q3FY22 as compared to ₹677.49 crore during the year-ago period, up 53 percent YoY.
Edelweiss Securities is bullish on Gujarat Fluorochemicals (GFL) with a target price of ₹3,447. “We have recently initiated coverage on GFL as we believe that the company offers strong growth opportunity in fluoropolymers and is a likely beneficiary of strong positioning in fluorine chemistry."
ICICI Securities is also bullish on Gujarat Fluorochemicals and believes that the company will likely benefit from rising demand/realisation for fluoropolymers. 5 analysts polled by MintGenie also have a 'strong buy' call for the stock.
The brokerage house has a 'Buy' call on the stock with a target price of ₹3,356 and it is among its top picks in the chemicals space. As per the brokerage, the company is backward-integrated for most products, which enables it to expand capacity faster than global peers. ICICI also expects new fluoropolymer revenues to rise sharply in FY23E on higher volumes.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.
