Could This Fluorochemicals Stock Give 60% Returns? “Yes” Feels Top Brokerage firm

Brokerage firm, KR Choksey has recommended buying the stock of Gujarat Fluorochemicals Ltd one of the leading producers of Fluoro-polymers, Fluorospecialities, Chemicals, and Refrigerants in India. It is one of the top five global players in the fluoropolymers market with exports to Europe, America, Japan, and Asia.

The value chain has enormous potential

According to KR Choksey, the demand tailwind in TFE-based fluoropolymers due to only three large non-Chinese global fluoropolymer (excluding Gujarat Fluorochemicals ) producers having strong presence post the exit of 3M. "Internationally, nations strive to become self-sufficient in semiconductor production, and the US has severely restricted knowledge transfer to China. Gujarat Fluorochemicals will probably gain from the Semi-conductor supply chain friend-shoring policy. The strong focus of the Governments around the world on Green hydrogen and Hydrogen fuel cells is expected to boost the demand of PTFE and other fluoro-polymers," the brokerage has said.

Buy the Gujarat Fluorochemicals stock with a price target of Rs 5105

Gujarat Fluorochem has carved out a market for itself in the fluoro-chemicals industry and is better positioned to explore markets for more value-added products, including in emerging industries like electric vehicles and advanced fluoropolymers, while continuing to benefit from its backward integrated and diversified businesses. "The stock is currently trading at a P/E multiple of 27.5x/22.0x FY23E/FY24E earnings. We maintain 'BUY' rating on the stock and apply a P/E multiple of 35x to its FY24E earnings, which yields a higher revised target price of Rs 5,015 per share," the brokerage has said in its report.

The stock of Gujarat Flourochemicals hit Rs 4173 as a high and a 52-week low of Rs 2112. The stock currently trades at Rs 3180 on the Bombay Stock Exchange.

Disclaimer

The above article is for information purposes only. These stocks are picked from the brokerage report of KR Choksey. Neither the brokerage, nor the author nor Greynium Information Technologies Pvt Ltd should be held responsible for losses based on a decision after reading the article.