Chemicals & Petrochemicals
Gujarat Fluorochemicals is a prominent Specialty Chemicals company, traded under the stock ticker FLUOROCHEM, with a substantial market cap of Rs. 40,980.6 Crores.
The company specializes in the manufacture and trading of a variety of products, including:
These products find applications across various sectors, such as agrochemicals, pharmaceuticals, EV battery materials, and more. Gujarat Fluorochemicals boasts an international presence, with operations in India, Europe, and the United States.
Among its notable offerings are:
The company markets its products under several well-known brands, including INOFLON, FLUONOX, INOFLAR, INOLUB, and Refron.
Established in 1987 and headquartered in Noida, India, Gujarat Fluorochemicals was previously known as Inox Fluorochemicals Limited until it rebranded in July 2019. It operates as a subsidiary of Inox Leasing and Finance Limited.
In terms of financial performance, the company reported trailing 12 months revenue of Rs. 4,695.3 Crores and has demonstrated a revenue growth of 21.7% over the past three years. Furthermore, Gujarat Fluorochemicals provides dividends to its investors, yielding 0.13% annually, with a recent distribution of Rs. 5 per share.
Summary of Gujarat Fluorochemicals's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
Last updated: Feb 25
Management Outlook:
Gujarat Fluorochemicals Limited (GFL) projects sustained growth across its segments, driven by strategic investments and market opportunities. Key highlights include:
Fluoropolymers:
Fluorochemicals:
EV Battery Materials:
Operational Efficiency:
Major Points:
Key Risks Mitigated:
Outlook: Confident in FY26 growth across fluoropolymers, fluorochemicals, and EV segments, with long-term value creation emphasized.
Last updated: Feb 25
Question 1:
Sanjesh Jain, ICICI Securities:
Answer:
The 3M plant shutdown occurred in December 2024. Commercial sales of value-added fluoropolymers are expected to start in Q4 FY25. FKM qualifications for ethanol-blended vehicles are complete, but material revenue impact is anticipated in subsequent quarters.
Question 2:
Sanjesh Jain, ICICI Securities:
What are the expected PTFE/PVDF capacity utilization and revenue/EBITDA projections for FY26?
Answer:
Full fluoropolymer capacity utilization is targeted by FY26-end. Specific revenue/EBITDA guidance was not provided, but management highlighted improved margins from product mix and value-added grades.
Question 3:
Sanjesh Jain, ICICI Securities:
Why restart R-32 capex now? What is the planned capacity (30,000 tons) and timeline?
Answer:
R-32 expansion (30,000 tons) resumes due to improved pricing and demand. Phase 1 (20,000 tons) is expected by March 2026 (capex: ~INR 150 crore), leveraging remaining HFC quotas post-2027.
Question 4:
Aatur, ICICI Prudential AMC:
How sustainable is R-32 expansion if prices drop again?
Answer:
The decision considered long-term demand-supply dynamics and quota availability. Management believes current pricing ($2.3/kg) reflects structural improvements, reducing downside risk.
Question 5:
Ketan Gandhi, Gandhi Securities:
How will potential U.S. IRA subsidy cuts impact EV battery chemicals capex plans (INR 6,000 crore by FY28)?
Answer:
Customers remain committed to EV/ESS capacity expansions despite policy shifts. GFCL's first-mover advantage, non-Chinese supply chain, and qualification progress underpin confidence in growth.
Question 6:
Arun Prasath, Avendus Spark:
Will R-32 expansion reduce chloromethanes (MDC) external sales?
Answer:
~50% of MDC production will shift to captive use for R-32; the remainder will continue as merchant sales.
Question 7:
Dhruv Muchhal, HDFC AMC:
What is the demand potential for FKM in India's ethanol-blended vehicles?
Answer:
Demand is significant but granular (varies by vehicle). Commercial orders are expected from OEMs/Tier-1 suppliers starting Q4 FY25, scaling through FY26.
Question 8:
Yash Shah, TCG AMC:
How will EV battery materials capex (INR 6,000 crore) translate into utilization (FY26"“28)?
Answer:
Utilization will follow customer qualification cycles (1"“2 years initially). Asset turnover of 2x and ~25% EBITDA margins are projected at optimal capacity.
Question 9:
Vimox Shah, Goyamlabdhi Fintech:
How is the INR 6,000 crore EV capex funded?
Answer:
Funded via INR 1,000 crore raised equity and advanced talks with sovereign funds. No debt reliance; GFL cash flows are not earmarked for EV projects.
Question 10:
Deepak Sharma, Investor:
What is the sustainable long-term EBITDA margin?
Answer:
No explicit guidance, but margins are expected to improve with fluoropolymer mix, R-32 pricing, and EV scale-up (targeting ~25% for EV chemicals).
Balance Sheet: Strong Balance Sheet.
Size: Market Cap wise it is among the top 20% companies of india.
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Smart Money: Smart money is taking extra interest in the stock as they increase their holdings.
Profitability: Recent profitability of 10% is a good sign.
No major cons observed.
Comprehensive comparison against sector averages
FLUOROCHEM metrics compared to Chemicals
Category | FLUOROCHEM | Chemicals |
---|---|---|
PE | 95.83 | 54.12 |
PS | 9.31 | 4.55 |
Growth | 0.3 % | 7.3 % |
FLUOROCHEM vs Chemicals (2021 - 2025)
Understand Gujarat Fluorochemicals ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
Shareholder Name | Holding % |
---|---|
Inox Leasing and Finance Limited | 52.61% |
Aryavardhan Trading LLP | 5.08% |
Devansh Trademart LLP | 4.84% |
Akash Bhanshali | 4.75% |
Life Insurance Corporation of India | 2.24% |
Dsp Midcap Fund | 2.03% |
Hdfc Mutual Fund - Hdfc Mid-Cap Opportunities Fund | 1.51% |
Nippon Life India Trustee Ltd-A/C Nippon India Small Cap Fund | 1.37% |
Motilal Oswal Large And Midcap Fund | 1.16% |
Devendra Kumar Jain | 0.02% |
Vivek Kumar Jain | 0.02% |
Devansh Jain | 0.01% |
Nandita Jain | 0.01% |
Distribution across major stakeholders
Distribution across major institutional holders
Valuation | |
---|---|
Market Cap | 43.7 kCr |
Price/Earnings (Trailing) | 95.83 |
Price/Sales (Trailing) | 9.31 |
EV/EBITDA | 38.37 |
Price/Free Cashflow | -134.59 |
MarketCap/EBT | 68.6 |
Fundamentals | |
---|---|
Revenue (TTM) | 4.7 kCr |
Rev. Growth (Yr) | 15.63% |
Rev. Growth (Qtr) | -2.92% |
Earnings (TTM) | 455.97 Cr |
Earnings Growth (Yr) | 57.32% |
Earnings Growth (Qtr) | 4.13% |
Profitability | |
---|---|
Operating Margin | 13.57% |
EBT Margin | 13.57% |
Return on Equity | 7.43% |
Return on Assets | 4.8% |
Free Cashflow Yield | -0.74% |
Investor Care | |
---|---|
Dividend Yield | 0.14% |
Dividend/Share (TTM) | 5 |
Shares Dilution (1Y) | 0.00% |
Diluted EPS (TTM) | 21.28 |
Financial Health | |
---|---|
Current Ratio | 1.4 |
Debt/Equity | 0.34 |
Debt/Cashflow | 0.3 |
Detailed comparison of Gujarat Fluorochemicals against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
---|---|---|---|---|---|---|---|---|---|
SRF | SRFSpecialty Chemicals | 87.98 kCr | 14.07 kCr | +2.56% | +12.47% | 76.71 | 6.25 | +4.78% | -22.29% |
PIIND | PI IndustriesPesticides & Agrochemicals | 54.37 kCr | 8.26 kCr | +4.55% | -4.58% | 32 | 6.58 | +7.42% | +6.69% |
NAVINFLUOR | Navin Fluorine InternationalSpecialty Chemicals | 22.06 kCr | 2.29 kCr | +6.02% | +34.53% | 83.57 | 9.61 | +3.88% | -21.55% |
AARTIIND | Aarti IndustriesSpecialty Chemicals | 15.55 kCr | 7.11 kCr | +10.14% | -43.08% | 42.37 | 2.19 | +13.53% | -15.30% |
CHEMPLASTS | Chemplast SanmarCommodity Chemicals | 6.85 kCr | 4.29 kCr | -2.24% | -13.49% | -78.44 | 1.6 | +4.22% | -7.54% |
GUJALKALI | Gujarat Alkalis & ChemicalsCommodity Chemicals | 4.57 kCr | 4.07 kCr | +8.00% | -22.48% | -38.08 | 1.12 | +0.76% | -0.43% |