Robust Quarterly Performance Highlights
In the latest quarter, Alufluoride Ltd achieved its highest-ever net sales of ₹58.59 crores, reflecting a significant uplift compared to previous quarters. This surge in revenue was accompanied by a corresponding expansion in profitability, with PBDIT (Profit Before Depreciation, Interest and Tax) reaching a peak of ₹14.03 crores. The company’s PBT less other income also hit a record high of ₹11.06 crores, underscoring the core operational efficiency improvements.
Net profit after tax (PAT) for the quarter stood at ₹9.43 crores, the highest in the company’s recent history, translating into an earnings per share (EPS) of ₹12.06. This EPS figure marks a notable improvement, signalling enhanced shareholder value creation. These results collectively indicate that Alufluoride has successfully navigated the challenges faced in prior periods and is now capitalising on favourable market conditions and internal efficiencies.
Financial Trend Shift and Market Reaction
The company’s financial trend score has improved markedly from 4 to 12 over the past three months, reflecting a transition from a flat to a positive outlook. This shift has been recognised by rating agencies, with Alufluoride’s Mojo Grade upgraded from Sell to Hold as of 19 January 2026. The Mojo Score currently stands at 52.0, indicating a moderate but improving investment appeal.
Market sentiment has responded positively to these developments, with the stock price rising 8.23% on the day to ₹426.05, after touching an intraday high of ₹439.70. This price movement is notable given the stock’s 52-week range of ₹375.50 to ₹503.00, suggesting renewed investor confidence amid improving fundamentals.
Our latest monthly pick, this Large Cap from Aluminium & Aluminium Products, is outperforming the market! See the analysis that helped our Investment Committee select this winner.
- - Market-beating performance
- - Committee-backed winner
- - Aluminium & Aluminium Products standout
Comparative Returns and Sector Context
When analysing Alufluoride’s stock returns relative to the broader market, the company has outperformed the Sensex over shorter and medium-term horizons despite some setbacks in the last year. Over the past week, Alufluoride’s stock gained 2.28%, while the Sensex declined by 1.29%. Over the last month, the stock was essentially flat with a 0.07% increase, contrasting with the Sensex’s 3.81% decline.
Year-to-date, the stock has marginally declined by 0.32%, slightly underperforming the Sensex’s 3.42% fall. However, over a three-year period, Alufluoride has delivered a robust 41.85% return, outpacing the Sensex’s 35.77%. The ten-year return is particularly striking, with the stock appreciating by an extraordinary 2090.49%, dwarfing the Sensex’s 236.83% gain. This long-term outperformance highlights the company’s resilience and growth potential within the commodity chemicals sector.
Margin Expansion and Operational Efficiency
Alufluoride’s margin performance has been a key driver of its improved financial trend. The PBDIT margin expansion is evident from the record operating profit of ₹14.03 crores on net sales of ₹58.59 crores, indicating an operating margin of approximately 23.9%. This margin improvement reflects better cost control and pricing power in a competitive commodity chemicals environment.
However, the company’s return on capital employed (ROCE) for the half-year period remains subdued at 20.33%, the lowest recorded in recent times. While this figure is still respectable within the industry, it signals room for improvement in capital utilisation efficiency. Investors will be watching closely to see if the company can translate its strong quarterly earnings into sustained capital returns.
Challenges and Outlook
Despite the encouraging quarterly results, Alufluoride faces challenges typical of the commodity chemicals sector, including raw material price volatility and global demand fluctuations. The company’s ability to maintain margin expansion amid these headwinds will be critical to sustaining its positive financial trend.
Moreover, the stock’s recent upgrade to a Hold rating suggests cautious optimism among analysts, who acknowledge the improved earnings but remain mindful of sector cyclicality and macroeconomic uncertainties. The company’s market capitalisation grade of 4 indicates a mid-sized presence, which may limit liquidity and investor interest compared to larger peers.
Alufluoride Ltd or something better? Our SwitchER feature analyzes this micro-cap Commodity Chemicals stock and recommends superior alternatives based on fundamentals, momentum, and value!
- - SwitchER analysis complete
- - Superior alternatives found
- - Multi-parameter evaluation
Investor Takeaway
Alufluoride Ltd’s recent quarterly performance marks a significant turnaround from a previously flat financial trend to a positive momentum phase. The company’s record net sales, operating profits, and earnings per share demonstrate operational improvements and effective market positioning within the commodity chemicals sector.
While the ROCE figure suggests some caution regarding capital efficiency, the overall financial health and market response indicate growing investor confidence. The stock’s outperformance relative to the Sensex over multiple timeframes further supports its appeal as a mid-cap investment option.
Investors should monitor upcoming quarterly results and sector developments closely to assess whether Alufluoride can sustain this positive trajectory and convert its operational gains into long-term value creation.
Unlock special upgrade rates for a limited period. Start Saving Now →
