Gujarat Fluorochemicals - A (hidden) gem?

Discussion in 'Ask A Query About Your Stock Picks And Portfolio' started by dineshkapoor27, Apr 24, 2016.

  1. dineshkapoor27

    dineshkapoor27 Active Member

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    Hi everyone,

    I was looking into Gujarat fluorochemicals company. Part of the INOX group and I noticed some interesting facts:

    1. Company's market cap is 6000 cr with a consolidated PE of 10 while industry PE is around 19.
    2. Company is into speciality chemicals used for Industrial Gases, Refrigerants, Chemicals, Cryogenic Engineering etc.
    3. If I remember/understand correctly, then Navine Fluorine, a much bandied name now, is also in the same business and is being fancied a lot and trading at around PE of 22.
    4. Very interesting fact, Guj Fluoro has around 45% holding in Inox Leisure (mcap 2000 cr currently) and 75% in Inox wind (mcap 6000 cr).
    5. Company has a clean balance sheet and its group companies (Inox wind, leisure) are growing pretty fast with very interesting areas.
    6. Govt has slapped anti-dumping duty on the imports of chemicals which should benefit Guj Fluoro company (http://www.moneycontrol.com/news/ec...chemical-used-by-pharma-industry_6346741.html)
    7. Current value of its hold in Inox company is around 5500cr and company's market cap is around 6k cr.

    What do you guys think? Am I missing something obvious?
     
    dharmesh jariwala likes this.
  2. Srouta Mukherjee

    Srouta Mukherjee Well-Known Member

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