KR Choksey Assigns "Buy" On Midcap Chemicals Stock For 71% Upside, Gave 420% Return In 3 Yrs

Top Brokerage firm KR Choksey has placed a "Buy" on Gujarat Fluorochemicals Ltd (GFL), a midcap chemicals sector stock. The brokerage has assigned a target price of Rs 5,015 per shar on the stock. It claims a robust return of up to 71% on the stock with target price. It has a market capitalisation of Rs 32,343.68 crore.

Gujarat Fluorochemicals Limited reported a revenue of INR 14,179mn in Q3 FY23 as against INR 14,613mn in Q2 FY23, a dip of 2.90% on a QoQ basis and an increase of approximately 41.25% on a YoY basis, as against INR 10,038mn in Q3 FY22. Check below to know more:

Stock Overview and Returns

The share price of GFL last traded at Rs 2,944.35 per share on NSE. As compared to its previous close of Rs 2,968.85 per share, it falls 0.83%. The stock quoted its 52 week low on 12 May 2022 at Rs 2,112.25 per share and 52 week high on 6 October 2022 at Rs 4,173.95 per share.

The stock in the last 1 week gained 4.39% and in the past 1 month, it gained 5.41%, respectively. However, the stock declined 19.12% in the past 3 years. In 1 year it gave 1.73% positive return. It has given 420.25% massive returns in 3 years. Since its date of listing, 16 October 2019, it has given 312.37% positive return.

 

KR Choksey Recommends "Buy" the stock with a Target Price of Rs 5,015 per share

KR Choksey said, "We believe GFL's future capex plans and its vertically integrated facility make it one of the most reliable producers, of a wide range of fluoropolymers, globally. With fluorine molecules gaining traction over conventional molecules due to increased biological activity in agrochemicals and pharmaceuticals, it is expected to create more market demand. GFL will have demand tailwind in TFE-based fluoropolymers due to shutdown of capacity by 3M which will create a void in high-performance fluoropolymers and some reduction in PTFE capacity by Solvay. Fluoropolymers` applications in 5G, EV batteries, solar Panels, hydrogen fuel cells, semi-conductors, Internet of Things (IOT), and clean environment will create a huge growth potential for GFL."

It added, "The stock is currently trading at a P/E multiple of 25.9x/20.71x FY23E/FY24E earnings. We maintain ‘BUY' rating on the stock and apply a P/E multiple of 35x to its FY24E earnings, which yields an increased revised target price of INR 5,015 per share."

 

Disclaimer

The stock has been picked from the brokerage report of KR Choksey. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.