Fluorochem results have been good both on y on y and q on q basis. The presentation has also been put up and provides a lot of insights into the prospects of the company. Concall also sounded quite bullish.
On the technicals front, the flag pattern which I had put up in the 52 weeks high thread seems to have failed. Today there seemed to be heavy selling in the counter. But in the journey of fast growing companies, post results selling is nothing new. When and where supply gets absorbed needs to be seen. Usually the short term guys tend to enter into companies whose results they expect to be good and exit once all the good news is out or even before that. But for someone who is there for the longer term horizon, these might often be construed as opportunities to add to positions, if allocations and funds permit.
Valuations wise, quartelry EPS is 33, half yearly EPS reported is 60. So one can make their own calculations and get rough estimates of full year numbers.
On the technicals front, the short term uptrend seems to have faced strong resistance at around 4000-4100. Support wise I would look out for support at levels at around 3670-80, which was a double top breakout on very short term charts. Below that I guess 3100-3200 should be a strong support, that being the zone of 200 dema and 30 WMA. And previously it was a major resistance, so going ahead, it should provide solid support.
I have put up chart of GFL showing a longer term flag breakout above 3000, whose targets are 4500. And another recent channel wherein stock price rallied from 3150 to 4170 and now seems to be retracing. Today support was seen at lower end of the channel and we need to see in next couple of days if that holds, or else we might have to look out for support at lower levels mentioned above.
Fundamentally listening to the concall gives a sense that the company seems to be on a strong wicket in terms of growth for next 2-3 years atleast. The near term growth triggers seem to be HFC gases, New fluoropolymers capacities getting on stream and speciality chemicals capacities getting on stream. Longer term growth plans are already mentioned in the presentation, with capex of 1250 cr planned each for FY 23 and FY 24.
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