Gujarat Fluorochemicals Ltd Falls to 52-Week Low of Rs 3,092

Stock Performance and Market Context

The stock’s fall to Rs.3092 represents a notable retreat from its 52-week high of Rs.4097.6, reflecting a year-long downward trend with a total return of -16.80%. This contrasts with the Sensex’s positive 6.58% gain over the same period. Gujarat Fluorochemicals is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum.

The broader market environment has been challenging, with the Sensex opening flat but subsequently declining by 709.69 points. The index is trading below its 50-day moving average, although the 50DMA remains above the 200DMA, indicating some underlying medium-term support. Notably, the NIFTY REALTY index also hit a new 52-week low on the same day, highlighting sectoral pressures.

Valuation and Financial Metrics

Gujarat Fluorochemicals currently holds a Mojo Score of 43.0 and has been downgraded from a Hold to a Sell rating as of 17 Nov 2025. The company’s valuation metrics suggest it is expensive relative to its returns, with a Return on Capital Employed (ROCE) of 10.3% and an Enterprise Value to Capital Employed ratio of 4.1. Despite this, the stock trades at a discount compared to its peers’ historical averages, reflecting market caution.

The company’s Price/Earnings to Growth (PEG) ratio stands at 0.8, indicating that earnings growth is not fully reflected in the current price. However, the stock’s underperformance relative to the BSE500 index over the last three years, one year, and three months points to persistent challenges in delivering shareholder returns.

Profitability and Growth Trends

Despite the stock’s price decline, Gujarat Fluorochemicals has demonstrated robust profit growth. Its profits have increased by 65.9% over the past year, with the latest six-month Profit After Tax (PAT) reported at Rs.363 crore, reflecting a growth rate of 58.52%. Operating profit has grown at an annualised rate of 28.34%, underscoring healthy long-term expansion in core earnings.

The company has reported positive results for four consecutive quarters, with the latest quarterly PBDIT reaching a peak of Rs.364 crore. These figures indicate operational strength and consistent earnings generation despite market headwinds.

Balance Sheet and Debt Position

Gujarat Fluorochemicals maintains a strong balance sheet with a low Debt to EBITDA ratio of 1.29 times and a Debt-Equity ratio of just 0.23 times as of the half-year period. This conservative leverage profile supports the company’s ability to service debt comfortably and provides financial flexibility.

The majority shareholding remains with promoters, reflecting stable ownership and control. With a market capitalisation of Rs.35,673 crore, Gujarat Fluorochemicals is the second largest company in the Specialty Chemicals sector, accounting for 6.46% of the sector’s market cap and contributing 3.01% of the industry’s annual sales of Rs.4,864 crore.

Sector Position and Industry Comparison

Within the Specialty Chemicals sector, Gujarat Fluorochemicals holds a significant position as the second largest company behind Solar Industries. Its market share and sales contribution highlight its importance in the industry landscape. However, the stock’s recent underperformance relative to sector peers and broader indices has weighed on investor sentiment.

The stock’s current Mojo Grade of Sell, downgraded from Hold in November 2025, reflects the cautious stance adopted by rating agencies. The Market Cap Grade of 2 further indicates moderate valuation concerns relative to the company’s size and sector peers.

Summary of Key Metrics

To summarise, Gujarat Fluorochemicals Ltd’s stock has reached a 52-week low of Rs.3092, down 4.61% on the day and underperforming its sector by 3.6%. The stock’s one-year return of -16.80% contrasts with the Sensex’s positive 6.58% gain. Despite this, the company has delivered strong profit growth, with PAT rising 58.52% in the latest six months and operating profit growing at 28.34% annually.

Valuation remains a concern with a ROCE of 10.3% and an EV/Capital Employed ratio of 4.1, while the stock trades below all major moving averages. The company’s low leverage and stable promoter holding provide financial stability amid market pressures.

Overall, the stock’s recent price action reflects a combination of valuation adjustments and broader market weakness, set against a backdrop of solid earnings growth and a strong balance sheet.

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