Stock to buy: If you are thinking of investing in the stock market then you can keep an eye on Gujarat Fluorochemicals Limited (GFCL) shares. Shares of Gujarat Fluorochemicals Limited ie GFCL can benefit investors in the coming days. In fact, Brokerage house ICICI Securities is Bullish on the Gujarat Fluorochemicals Limited stock and has a buy call. The brokerage house believes that the company is likely to benefit from the rising demand for fluoropolymers.
Multibagger returns in a year
The shares of Gujarat Fluorochemicals Limited have given multibagger returns to its shareholders in the last one year. The share price has increased from Rs 707.70 to Rs 2,950 in the last one year. The stock has given a return of around 317 per cent during this period. Let us inform that the company’s shares closed at Rs 2,950 on Friday, up 3.36%. The stock has registered a rise of up to 20% so far this year. The market cap of the firm increased to Rs 32,050.39 crore. The stock is trading above the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
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Target price is Rs 3,356
The brokerage house has given a ‘BUY’ rating on the stock with a target price of Rs 3,356. Let us inform that GFCL is one of the preferred shares in the chemical sector. ICICI Securities said, “We factor in 5 per cent price increase for PTFE in FY23E. If we assume 15 per cent growth, PTFE revenue estimates will be higher by Rs 1.5 billion, which will largely flow into EBITDA.”
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It was noted that GFCL is in the process of increasing the capacity of FKM from 2.4ktpa to 4.8ktpa and PVDF from 1.2ktpa to 2.4ktpa. The brokerage firm also expects new fluoropolymer revenues to rise sharply in higher volumes in FY13.