Alufluoride Ltd is Rated Hold

Current Rating and Its Significance

The 'Hold' rating assigned to Alufluoride Ltd indicates a neutral stance for investors. It suggests that while the stock is not currently a strong buy, it is also not recommended for sale. Investors should consider maintaining their existing positions and monitor the company’s developments closely. This rating reflects a balance of strengths and challenges across key evaluation parameters including quality, valuation, financial trends, and technical indicators.

Quality Assessment

As of 03 January 2026, Alufluoride Ltd demonstrates a good quality grade. The company exhibits high management efficiency, evidenced by a robust Return on Capital Employed (ROCE) of 26.39%. This figure highlights the firm's ability to generate strong returns from its capital base, a positive sign for long-term sustainability. Additionally, the company maintains a low Debt to EBITDA ratio of 0.34 times, signalling a strong capacity to service its debt obligations without undue financial strain. These factors contribute to the company's solid operational foundation.

Valuation Perspective

Valuation metrics currently portray Alufluoride Ltd as very attractively priced. The stock trades at a Price to Book Value of 3.1, which is considered fair relative to its peers and historical averages. This valuation suggests that the market is pricing the company reasonably, neither excessively optimistic nor unduly pessimistic. For investors, this means the stock offers value that aligns with its underlying fundamentals, making it a viable option for those seeking exposure to the commodity chemicals sector without paying a premium.

Financial Trend Analysis

The financial trend for Alufluoride Ltd is currently flat, reflecting a mixed performance in recent periods. Operating profit has grown at an annual rate of 33.69%, indicating healthy operational growth. However, the company’s Profit After Tax (PAT) for the nine months ended September 2025 declined by 20.60%, and the half-year ROCE dropped to 20.33%, the lowest in recent times. Furthermore, the Return on Equity (ROE) stands at 16.8%, which, while respectable, points to some pressure on shareholder returns.

Over the past year, the stock has delivered a return of -11.68%, underperforming the broader BSE500 index over one year, three years, and the last three months. Profitability has also contracted slightly by 2.2% during this period. These factors suggest that while the company maintains operational strengths, it faces challenges in translating these into consistent profit growth and stock price appreciation.

Technical Outlook

Technically, Alufluoride Ltd is mildly bullish. The stock has shown modest gains over recent months, with a 6-month return of +8.90% and a year-to-date increase of +2.30% as of 03 January 2026. Shorter-term movements include a 1-month gain of 3.17% and a 1-week rise of 2.22%, despite a slight dip of 0.38% on the most recent trading day. This mild bullishness suggests some positive momentum, but not enough to strongly signal a breakout or sustained upward trend at this time.

Shareholding and Market Capitalisation

Alufluoride Ltd is classified as a microcap stock within the commodity chemicals sector. The majority shareholding is held by promoters, which often implies stable control and alignment of interests with long-term investors. However, microcap status can also mean higher volatility and lower liquidity, factors that investors should consider when evaluating the stock’s risk profile.

Investor Takeaway

For investors, the 'Hold' rating on Alufluoride Ltd suggests a cautious approach. The company’s strong management efficiency and attractive valuation provide a solid foundation, but the flat financial trend and recent profit declines warrant careful monitoring. The mild bullish technical signals offer some optimism, yet the stock’s underperformance relative to broader indices highlights the need for prudence.

Investors currently holding the stock may consider maintaining their positions while watching for improvements in profitability and financial trends. Prospective investors might wait for clearer signs of sustained growth or technical strength before initiating new positions. Overall, the rating reflects a balanced view that recognises both the company’s strengths and the challenges it faces in the near term.

Summary of Key Metrics as of 03 January 2026

• Mojo Score: 68.0 (Hold Grade)


• ROCE: 26.39%


• Debt to EBITDA: 0.34 times


• Operating Profit Growth (Annual): 33.69%


• PAT (9M Sep 2025): Rs 12.53 crores, down 20.60%


• ROE: 16.8%


• Price to Book Value: 3.1


• 1-Year Stock Return: -11.68%


• 6-Month Stock Return: +8.90%

These figures provide a snapshot of the company’s current financial health and market performance, underpinning the rationale for the 'Hold' rating.

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