KR Choksey has given Gujarat Fluorochemicals an "Accumulate" rating with a target price of INR 4,550, according to their research report dated October 30, 2024.

The company's Q2 FY25 earnings were in line with expectations, with a revenue of INR 11,880 million, representing a 25.4% YoY increase. This growth was driven by strong performance in the Fluoropolymers and Fluorochemicals segments, despite a decline in the Bulk Chemical segment. EBITDA increased by 79.9% YoY to INR 2,950 million, with an EBITDA margin of 24.8%. Profit After Tax (PAT) rose to INR 1,210 million, up 128.3% YoY, resulting in a PAT margin of 10.2%.

The firm has adjusted its FY26 P/E multiple to 39.0x and raised its FY26E EPS to INR 116.7, reflecting positive expectations for improved pricing conditions. The outlook suggests a potential turnaround in the legacy business by Q4 FY25, coinciding with the commercial launch of the GFCL EV business. As a result, the target price has been increased from INR 3,675 to INR 4,550 while maintaining the "Accumulate" rating.