Gujarat Fluorochemicals recorded a 25.5% year-on-year increase and a 1% quarter-on-quarter rise in consolidated revenue from operations, amounting to Rs 11.8 billion.

The Fluoropolymers segment witnessed stable volumes compared to the previous quarter, but saw improved realizations due to a shift towards higher value grades. This segment is expected to grow as a major industry player plans to halt production by December 2024.

Refrigerant prices saw a slight increase, while specialty chemicals remained subdued, with expectations for improvement in the fourth quarter of FY25. The bulk chemicals segment operated at full capacity but faced a 6% decline both sequentially and annually, primarily due to falling caustic soda prices, which are now starting to recover. The battery chemicals segment is anticipated to contribute to revenue starting from the fourth quarter of FY25, with product validation in advanced stages.

Despite the potential for growth in high-grade fluoropolymers and battery chemicals, the stock is currently considered overvalued, trading at 78 times FY26 EPS. Prabhudas Lilladher maintains a "REDUCE" rating on the stock, with a target price of Rs 3,770, valuing it at 65 times FY26/FY27 EPS.