According to Prabhudas Lilladher's research report dated May 27, 2026, the brokerage has downgraded Gujarat Fluorochemicals to REDUCE rating with a target price of ₹3,478. The company is currently trading at 53x FY28E EPS, which the brokerage considers expensive. Prabhudas Lilladher values the company at 49x FY28E EPS to arrive at the target price.
As reported by Prabhudas Lilladher, FLUOROCHEM reported consolidated revenue from operations of ₹13.6 billion in Q4FY26, representing 11.8% YoY growth and 20.5% QoQ growth. The Fluoropolymers segment emerged as the primary growth driver, growing 19% YoY, driven by higher volumes and improved realizations across key products. The Fluorochemicals segment declined 2% YoY but grew 63% QoQ, aided by favorable pricing environment, while the company commenced production and sales of R32 in March 2026.
According to the research report, the Bulk Chemicals segment recorded 1% YoY growth but declined 3% sequentially. The Battery Chemicals segment contributed ₹150 million to revenue during the quarter, with management indicating that FY27 and FY28 will be key growth years. The company announced ₹2.5 billion capex for expanding its new fluoropolymer portfolio, with existing capacities operating at optimal utilization levels.
As reported by Prabhudas Lilladher, near-term growth is expected to be supported by increasing applications in semiconductors, EVs/BESS, and clean energy sectors. The Fluoropolymers business is expected to remain the primary growth driver, while the Battery Chemicals segment may take longer than anticipated to make meaningful contribution to topline, with LiPF₆ likely to be the only significant revenue contributor in FY27.
According to the brokerage's analysis, the downgrade to REDUCE rating reflects concerns about the stock's valuation at current levels. The company's strong performance in Fluoropolymers and the positive outlook for clean energy applications provide some support, but the premium valuation and longer-term growth expectations for the Battery Chemicals segment warrant a cautious stance.
