Gujarat Fluorochemicals Q3 Results Review - Strong Beat; Venturing Into LFP: Prabhudas Lilladher

Prabhudas Lilladher Report

Gujarat Fluorochemicals Ltd. topline improved to Rs 9.9 billion (-30% YoY/ 4.7% QoQ), QoQ improvement primarily led by bulk chemicals and fluorochemicals.

For fluoropolymers segment, while prices remained stable, demand was adversely impacted due to holiday season across the U.S. and Europe. While semiconductor grade PFA is already being supplied, other grades are expected to be launched soon along with solar and battery grade PVDF which are progressing towards commercialization in Q2 FY26.

LiPF6 plant at Jolva has already been commissioned but commercialisation post customer approval is expected from Q2 FY25.

Gujarat Fluorochemicals has announced a total investment of Rs 60 billion in its subsidiary for battery chemicals- GFCL EV along with foray into lithium ferrophosphate.

The stock is trading at 67 times FY25 EPS. We upgrade the company to Hold with target price of Rs 3,727, valuing it at 45 times FY26 earnings per share.

We have raised the multiple (earlier 35 times) to include option value of foray into LFP.

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