Recent Price Movement and Market Context
The stock has experienced a consecutive three-day decline, resulting in an 8.38% loss over this period. Today’s drop of 1.28% further extended the downward trend, with Gujarat Fluorochemicals underperforming its sector by 3.54%. This contrasts sharply with the broader market, where the Sensex rose by 0.33% to close at 82,130.43, edging closer to its 52-week high of 86,159.02, just 4.91% away.
While mega-cap stocks led the market rally, Gujarat Fluorochemicals, with a market capitalisation of Rs.33,318 crores, remains the second largest company in the specialty chemicals sector after Solar Industries. Despite this stature, the stock’s price action has lagged behind, trading below all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling sustained bearish momentum.
Valuation and Financial Metrics
The company’s current valuation metrics contribute to the subdued market sentiment. Gujarat Fluorochemicals carries a Mojo Score of 43.0 and has recently been downgraded from a Hold to a Sell rating as of 17 Nov 2025. Its Market Cap Grade stands at 2, reflecting a relatively modest market capitalisation compared to peers.
Return on Capital Employed (ROCE) is reported at 10.3%, while the Enterprise Value to Capital Employed ratio is elevated at 3.8, indicating a relatively expensive valuation. Despite this, the stock trades at a discount compared to the average historical valuations of its peers, suggesting some valuation complexity.
Over the past year, the stock has generated a negative return of 11.29%, underperforming the Sensex’s positive 8.24% gain. This underperformance extends to longer time frames, with the stock lagging the BSE500 index over the last three years, one year, and three months.
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Profitability and Growth Indicators
Despite the price weakness, Gujarat Fluorochemicals has demonstrated robust profit growth. Its operating profit has expanded at an annual rate of 28.34%, and the company has reported positive results for four consecutive quarters. The latest six-month Profit After Tax (PAT) stands at Rs.363 crores, reflecting a growth of 58.52% compared to previous periods.
Quarterly PBDIT reached a high of Rs.364 crores, underscoring operational strength. The company’s debt metrics are also favourable, with a low Debt-to-EBITDA ratio of 1.29 times and a Debt-to-Equity ratio of just 0.23 times as of the half-year mark, indicating a strong capacity to service debt obligations.
Sector Position and Industry Contribution
Gujarat Fluorochemicals holds a significant position within the specialty chemicals sector, accounting for 6.14% of the sector’s market capitalisation. Its annual sales of Rs.4,864 crores represent 3.03% of the industry’s total revenue. However, while the sector has gained 2.44% today, the stock’s decline highlights a divergence in performance within the industry.
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Comparative Performance and Market Dynamics
The stock’s 52-week high was Rs.4097.6, reached earlier in the year, indicating a substantial decline of approximately 27.7% to the current low of Rs.2962.4. This contrasts with the broader market’s positive trajectory, where the Sensex is trading near its yearly peak and the chemicals sector is advancing.
Gujarat Fluorochemicals’ PEG ratio of 0.7 suggests that earnings growth is not fully reflected in the stock price, yet the market’s cautious stance is evident in the recent downgrade and valuation metrics. The company’s promoter group remains the majority shareholder, maintaining stable ownership.
Summary of Key Financial Ratios and Ratings
Key financial indicators include:
- ROCE: 10.3%
- Enterprise Value to Capital Employed: 3.8
- Debt to EBITDA: 1.29 times
- Debt to Equity (HY): 0.23 times
- Market Cap: Rs.33,318 crores
- Mojo Score: 43.0 (Sell rating, downgraded from Hold on 17 Nov 2025)
These metrics reflect a company with solid profitability and manageable debt, yet facing valuation pressures and recent price declines amid a stronger sector and market environment.
Market and Sector Overview
On the broader market front, the Sensex opened flat but gained momentum to close higher by 0.33%. The index remains below its 50-day moving average, though the 50-day average itself is above the 200-day average, signalling a cautiously optimistic market trend. Mega-cap stocks have been the primary drivers of gains, contrasting with the underperformance of Gujarat Fluorochemicals.
Conclusion
Gujarat Fluorochemicals Ltd’s fall to a 52-week low of Rs.2962.4 highlights a divergence between the company’s financial performance and its stock price movement. While profitability and debt metrics remain healthy, valuation concerns and recent price trends have weighed on the stock. The contrast with sector gains and broader market strength underscores the challenges faced by the stock in regaining momentum.
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