Gujarat Fluorochemicals raises price-to-earnings multiple to 89 after revenue grows 24%
Shares rose nearly 34% in three months driven by revenue and profit growth, though valuations remain high at eight-nine times earnings.
Shares of Gujarat Fluorochemicals gained nearly 34% over the last three months due to strong performance in its June quarter. The company reported 24% year-on-year revenue growth and 20% net profit growth. Fluoropolymers and fluorochemicals generated 58% and 29% of total revenue, respectively. Management plans to invest roughly ₹2,300 crore on electric vehicle projects and approximately ₹800 crore in the chemical business for fiscal year 27 as part of a ₹6,000 crore two-year capex program. Future fluoropolymers sales are expected to grow by 17% to 20% annually. Analysts at PL Capital view fluoropolymers as the primary growth driver, noting battery materials may require more time to impact top-line results significantly.
