Shares of Gujarat Flurochemicals (GFL) continued their northward move for third straight day, hitting a new high of Rs 2,539.95. The stock has rallied 10 per cent on the BSE in Friday’s intra-day trade in an otherwise range-bound market, and has zoomed 29 per cent in past three trading days, on expectation of strong earnings growth.
In past six months, the stock price of specialty chemicals company has soared nearly 150 per cent, as compared to 12 per cent rise in the S&P BSE Sensex. In one year, it has surged 320 per cent, against 31 per cent gain in the benchmark index.
In first half (April-September) of the current financial year 2021-22 (H1FY22), GFL posted robust results, with standalone net profit 142 per cent year on year at Rs 352.41 crore, on back of strong operational performance. It had reported net profit of Rs 355 crore in entire FY21.
GFL has foray into new age business – chemicals & fluoropolymers for electric vehicles (EVs) - batteries, solar panels & hydrogen fuel cells.
Battery demand for EVs by 2030 for electric mobility, energy storage and consumer electronics is estimated at 2633 GWH with EV battery chain providing revenue opportunities of 300 Billion US$ by 2030. (Source: World Economic Forum, Mckinsey Analysis dated October 2019).
The world leaders Tesla, Toyota, GM, Ford, Volkswagen, Audi, BMW and others are planning to move to EVs. The large number of battery plants are being planned worldwide to meet the growing requirements.
Almost a dozen companies are planning to set up EV Battery manufacturing plants in India over the next few years, in line with the Government push to make India a significant global manufacturer of EV vehicles.
GFL is in the process of setting up an integrated battery chemicals complex. In addition, GFL has developed suitable PVDF grades for cathode binder application. This initiative will require significant capex in the next few years and will ensure a robust growth in revenues and profits, the company said in investor presentation.
At 10:05 am; GFL was trading 8 per cent higher at Rs 2,508 on the BSE, as compared to 0.20 per cent decline in the S&P BSE Sensex. The trading volumes on the counter nearly doubled with a combined 364,000 shares were changed hands on the NSE and BSE.
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