Gujarat Fluorochemicals Q1 Results Review - Fluoropolymers Business’ Outlook Intact: ICICI Securities

ICICI Securities Report

Gujarat Fluorochemicals Ltd. Q1 FY25 Ebitda, at Rs 2.6 billion, improved 10% QoQ and outperformed other fluorine peers. The company reiterated its Ebitda guidance of Rs 18–19 billion on rolling four quarters by end-FY25, or early-FY26.

It anticipates fluoropolymers business to recover with higher sales in new fluoropolymers in H2 FY25, and benefit from industry consolidation along with improved off-take in the new high-value products.

Gujarat Fluorochemicals EV had initial wins in its battery chemicals business, and expects commercial supplies to begin by end-FY25 to global customers; and many more under discussion.

We cut our FY25E/FY26E earning per share by 14%/12%, and target price to Rs 3,580 (from Rs 4,075) with an unchanged FY26E price to earning multiple at 35 times. Maintain 'Add'.

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