Gujarat Fluorochemicals - A (hidden) gem?

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 (https://www.moneycontrol.com/news/e...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?

 

There is one research report here https://www.sanasecurities.com/gujarat-fluorochemicals-equity-research/ but no comment is there of whether stock is good or not for buy. Just general info is there. RoE is 13.82 in FY 2015. Even in valuepickr much discussion is not there. https://forum.valuepickr.com/t/gujarat-fluorochemicals/629 People prefer SRF and Vinati organics look like favourites