Broker’s call: Gujarat Fluorochemicals (Buy)
GFL is capable of addressing 70% of the total value (cost) requirement for LFP batteries, establishing the company as a critical player in the evolving non-Chinese global supply chain
Gujarat Fluorochemicals (GFL) has been upgraded to a Buy rating with an increased target price of ₹5,380, reflecting a higher valuation multiple of 35x for the fiscal year 2029 earnings per share. The firm's strategic advantage lies in its extensive battery chemicals portfolio, making it a key player in the non-Chinese global supply chain for lithium iron phosphate (LFP) batteries.
GFL's in-house expertise in high-performance (HF) chemistry, processing, and high-temperature calcination, combined with its existing pilot-scale capacities, positions it well to address 70% of the total value requirement for LFP batteries. Adjustments have been made to the target PE multiple and EPS estimates due to GFCL EV's financial losses and lower revenue, but the overall valuation still appears favorable.
The current price-to-core EBITDA ratio of 22x suggests that the company's core chemical business is attractively priced, offering investors a compelling risk-reward opportunity.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
