KR Choksey's research report on Gujarat Florochemical
During the quarter GFL’s revenue came at INR 14,613 Mn (+51.59% YoY / +9.55% QoQ). Higher PTFE volumes supported the topline growth due to availability of additional TFE. On operational front EBITDA stood at INR 5,365 Mn (+81.26% YoY / +16.89% QoQ), with OPM at 36.71% (+601 bps YoY/+231 bps QoQ). Better realisation mix pushed the margins. Net Profit stood at INR 3,570 Mn against INR 2,050 (+74.15%) on YoY basis and (+17.82% QoQ), with NPM at 24.43% (+316 bps YoY/+172 bps QoQ). EPS during the quarter came at INR 32.52 vs 18.66 in the same period last year. The Board has declared an Interim Dividend of Rs. 2 per equity Share.
Outlook
Currently the stock is trading with a P/E multiple of 35.28x/31.66x FY23E/24E to its earnings. We maintain ‘ACCUMULATE’ rating on the stock and apply P/E multiple of 39x to its FY24E earnings, which yields an increased revised target price of INR 4,045 per share.
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