Multibagger specialty chemical stock rallies to hit record high, up 107% in a year

Shares of Gujarat Fluorochemicals Ltd (GFL) rallied to hit a record high of ₹4,025 apiece on the BSE in Friday's trading session as the stock rose about a per cent intraday. The counter has been in upward trend since the last few sessions and has gained over 8% in the last five trading sessions.

Headquartered in Noida, India, Gujarat Fluorochemicals Limited (GFL), is a part of the INOXGFL Group, which has diversified business segments comprising Fluoropolymers, Speciality Chemicals, Wind Energy, and Renewables. 

Gujarat Fluorochemicals Limited (GFL) is an Indian Chemicals Company with over 30 years of expertise in Fluorine Chemistry. GFL holds domain expertise in Fluoropolymers, Fluorospecialities, Refrigerants and Chemicals. The specialty chemical stock has given multibagger return of about 106% in a year's period, whereas the multibagger stock is up about 59% in 2022 (YTD) so far.

“In line with our expansion plans, we are implementing a significant capex for battery chemicals, new fluoropolymers, PTFE, refrigerant gases etc riding on a strong backward integrated model complete with allied infrastructure,” the company had said in its annual report for FY22.

“Our plans are underway to add capacities in high-value niche as well as new age product segments that will drive growth and profitability. Backed by our robust supply chain and long-term contracts for raw material sourcing, we have embarked upon the next phase of strong growth and firming up our leadership in fluoropolymers space. We are also gearing towards being part of the Electric Vehicles (EV ) ecosystem, which will unveil new avenues of growth for us,” the report added.

Domestic brokerage and research firm ICICI Securities hosted Gujarat Fluorochemicals (GFL) management for an investor meet in Mumbai last week. The brokerage in a note highlighted that the company is optimistic about the rising opportunity in fluoropolymers and battery chemicals over next 5-10 years.

“Post FY25, GFL expects significant opportunities from battery chemicals for which it is planning to commercialise the first plant in next two quarters. GFL is well placed to increase its revenues on the back of its significant exposure to new-age industries of battery, solar and green hydrogen. It aspires to double the revenue in next three years and maintain EBITDA margin at 30-35% at least," the note stated.