26 Aug , 2021 By : Kanchan Joshi
Many specialty chemical stocks have outperformed on improved outlook by giving multibagger returns this years so far. One such multibagger stock from the space is Gujarat Fluorochemicals Limited (GFL). Shares of Gujarat Fluoro have rallied nearly 200% this year (year-to-date or YTD) alone and have surged around 222% in one year. From below Rs570 level in early January, the stock currently trades at around Rs1,710 per share.
Headquartered in Noida, Gujarat Fluorochemicals is a chemical manufacturing company, a part of the INOX group of firms, engaged in manufacturing and trading of refrigerant gases, caustic soda, chloromethane, polytetrafluoroethylene (PTFE), fluoropolymers, fluoro-monomers, specialty fluoro-intermediates, specialty chemicals, and allied activities.
The company has three manufacturing facilities in India, a captive fluorspar mine in Morocco, warehouses in Europe and US. It is expanded into fluorospeciality chemicals, exporting to over 75 countries. The chemical company's clients belong to sectors such as automotive, aerospace, semiconductors, electronics, common household appliances, telecommunications, healthcare and architecture.
Gujarat Fluorochemicals has been adding various new products and has filed for Lithium Hexafluoro Phosphate (LiPH6) as one of the products. Due to rising emphasis on electronic vehicles (EVs), analysts expect the demand for LiPH6 to rise.
Speciality chemicals manufacturers have been in focus for a while now, with rising demand and realisations. The companies have seen significant improvement in profitability and earnings over the last one year. Brokerages are bullish on the sector with a positive outlook as they expect India’s share in the specialty chemicals to double over the next five years.
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