Midcap Specialty Chemicals Gave Returns Over 320% In 3 Yrs, Shares Can Surge 65%, Buy: ICICI Securities

Leading brokerage firm ICICI Securities has a "buy" call on the stock of a leading Specialty Chemical sector company, Gujarat Fluorochemicals Ltd. The brokerage has given a target price of Rs 4,270 apiece to the stock, which implies 65% upside in the share price of the stock from its current market price. This is a midcap stock with a market capitalisation of Rs 28,593.41 crore. Here are key highlights about the stock from the brokerage report:

Gujarat Fluorochemicals ' stock performance

The current market price of Gujarat Fluorochemicals' stock on NSE is Rs 2,602.95 apiece, down 0.81% from the previous close of Rs 1,097 apiece. The stock's 52-week high is Rs 4,173.95 apiece and the 52-week low is Rs 2,112.25 apiece, respectively. It was listed on the stock exchange on 16 October 2019. 

Since its date of listing it has given 264.56% positive returns. However, the share price has fallen 2.74% in the past 1 week. In the past 1 month, it fell 16.33% and in 3 months it fell 22.26%, respectively. Whereas, in the past 1 year, it surged by 2.66%. In the past 3 years, it gained 326.6%. 

TFE opportunity puts GFL in a strong position, Buy For a Target Price of Rs 4,270 apiece

According to the brokerage, Fluoropolymers business is likely to undergo a major shake-up from rising regulatory concerns due to use of PFAS class products. This could potentially lead to a huge opportunity for Gujarat Fluorochemicals (GFL) and address one of the key concerns on the company about durability of growth in fluoropolymers business. It will also help GFL move up in fluoropolymers value chain which will likely aid realisation / cushion any price decline. GFL has three key ingredients to win TFE-based fluoropolymers business - 1) leading position in non-fluorinated aid for manufacturing fluoropolymers; 2) enough capacity to fill gap vacated by key global peers, and accommodate volume for growing demand from semicon and green hydrogen; and 3) access to market as it has a strong foothold in Europe/US. "We see an upside risk to our estimates for GFL; however, for now, we maintain our estimates, and target price at Rs4,270 (30x FY24E EPS). Reiterate BUY," the brokerage has said. 

Disclaimer

The stock has been picked from the brokerage report of ICICI Securities. 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.