FLUOROCHEM

stock review

(GFL) is at the cusp of inflection in earnings growth with revenue / EBITDA / PAT CAGR estimated at 20.4%/ 33.4%/ 46% over FY25-27E. The quality of earnings may also be better with fluoropolymers contributing 67% / 70% to incremental revenue/ EBITDA. Fluoropolymers business has tailwinds from industry consolidation, destocking impact creating a low base in past two years, rise in demand particularly in India, and limited capacity addition by the remaining western players. GFL has added large capacity which should aid in winning market share. Ref-gas should benefit from tight-supply situation; R-32 capacity could commission in FY27E.