Gujarat Fluoro is this week's top stock; why analysts are bullish
EBITDA, and PAT fell short of Reuters-Refinitiv estimates by 4.7%, 8.1% and 18.8%, respectively. While the fluorochemicals segment reported a weak quarter, the new fluoropolymers gained traction, led by innovations in emission controls.
The management is confident about performance improvement, supported by buoyant growth prospects of the EV segment, and volume improvement in fluoropolymers. Analysts, too, are optimistic about the company’s long-term business outlook.
The firm has a presence in 16 countries and has diversified operations, from refrigerant gases to chemicals and fluorospecialities. It is expected to benefit from the buoyant prospects of fluoropolymers and fluorochemicals. The former have properties that make them suitable for use across multiple industries like automotive, transportation and electronics. There is strong demand from 5G, EV batteries, solar panels, hydrogen fuel cells and semiconductors. The rising environmental awareness and government incentives are further fuelling the growth of fluoropolymers. The company’s 2023-24 annual report states that the global fluoropolymers market is expected to grow at 5.9% CAGR between 2022 and 2030, to $325 million.
On the other hand, extensive use across petrochemical, agrochemical, construction, personal care and pharmaceutical sectors is boosting the growth of fluorochemicals due to their resistance to abrasion, chemicals and fire. The report cites the estimates of the Imarc group that projects the global fluorochemicals market to grow at 4.3%
