🧵Thread on Gujarat Fluorochemicals (GFL) & Fluorine Chemistry🧵
Excellent analysis by Elara Securities & used it as a base.
Summarizing for the clarity of my thoughts. Out of SRF, Navin and GFL, biased to GFL due to compelling growth story but premium valuations
@MashraniVivek
Excellent analysis by Elara Securities & used it as a base.
Summarizing for the clarity of my thoughts. Out of SRF, Navin and GFL, biased to GFL due to compelling growth story but premium valuations
@MashraniVivek
💡Market Opportunity
-Global fluorochemicals projected to grow CAGR 5.2%
-Fluorine applications market in pharmaceuticals & agrochemicals expected to register a 7.9% CAGR.
-5 years in Pharma and Agri, Global demand growth - USD 1bn for fluorocarbons &~USD 5bn for fluorine
-Global fluorochemicals projected to grow CAGR 5.2%
-Fluorine applications market in pharmaceuticals & agrochemicals expected to register a 7.9% CAGR.
-5 years in Pharma and Agri, Global demand growth - USD 1bn for fluorocarbons &~USD 5bn for fluorine
💡End application of Fluoropolymers
-Existing applications: automotive, semiconductors, electrical and electronics
-New high-growth applications: eMobility, clean environment drive, high purity water, 5G data transmission, internet of things, solar PV modules, lithium batteries
-Existing applications: automotive, semiconductors, electrical and electronics
-New high-growth applications: eMobility, clean environment drive, high purity water, 5G data transmission, internet of things, solar PV modules, lithium batteries
💡Growth Drivers
-Fluoropolymers huge growth potential with demand across several green industries EV, solar and hydrogen
-USD 5bn on fluorine molecules demand in pharmaceuticals and agrochemicals
-Battery demand 2030 for EV resulting revenue opportunities of USD 300bn by CY30
-Fluoropolymers huge growth potential with demand across several green industries EV, solar and hydrogen
-USD 5bn on fluorine molecules demand in pharmaceuticals and agrochemicals
-Battery demand 2030 for EV resulting revenue opportunities of USD 300bn by CY30
💡Key Performing Polymers
1.PVDF
2.PFA
3.FEP
4.FKM
5. PPA
6.Micro powders
GFL is in all the polymers
1.PVDF
2.PFA
3.FEP
4.FKM
5. PPA
6.Micro powders
GFL is in all the polymers
💡Company Description
Gujarat Fluorochemicals (GFL)
-leading producer of fluoropolymers, fluoro specialty, refrigerants & chemicals in different industries
-Established manufacturer of fluoropolymers & fluoro-specialty markets
-Turnover INR 39.5bn with a PAT of INR 7.8bn in 22
Gujarat Fluorochemicals (GFL)
-leading producer of fluoropolymers, fluoro specialty, refrigerants & chemicals in different industries
-Established manufacturer of fluoropolymers & fluoro-specialty markets
-Turnover INR 39.5bn with a PAT of INR 7.8bn in 22
💡Capex
-Capex of INR 20bn during FY23-24
-focused on fluoropolymers & new-age industry verticals like PTFE capacity expansion, battery chemicals & EV fluoropolymer, PVDF films, backward integration of VDC and refrigerant,electrolytes,LIPF6
-Revenue CAGR of 35% over FY22-25
-Capex of INR 20bn during FY23-24
-focused on fluoropolymers & new-age industry verticals like PTFE capacity expansion, battery chemicals & EV fluoropolymer, PVDF films, backward integration of VDC and refrigerant,electrolytes,LIPF6
-Revenue CAGR of 35% over FY22-25
💡Positive Triggers
-Entry barriers are high given: 1) business complexity, 2) limited feedstock availability, and 3) stringent & time-consuming customer approval process
-GFL is setting up India’s first PVDF solar film project
-GFL is setting up an integrated battery chemicals
-Entry barriers are high given: 1) business complexity, 2) limited feedstock availability, and 3) stringent & time-consuming customer approval process
-GFL is setting up India’s first PVDF solar film project
-GFL is setting up an integrated battery chemicals
-Refrigerant: largest manufacturer of R22 and trying to foray into R125complex
-GFL only manufacturer of LIPF6 in India
-For battery chemicals, the company to approach electrolyte manufacturers globally
-Need significant capex in the next few years to ensure robust revenue growth
-GFL only manufacturer of LIPF6 in India
-For battery chemicals, the company to approach electrolyte manufacturers globally
-Need significant capex in the next few years to ensure robust revenue growth
Risks
- GDP slowdown would hurt chemicals demand growth
-Revival of China’s chemicals industry
-Increased competition from international suppliers,
-Disruptions in supply chains of key raw materials
-Longer-than-expected qualification process time for
new product approval
- GDP slowdown would hurt chemicals demand growth
-Revival of China’s chemicals industry
-Increased competition from international suppliers,
-Disruptions in supply chains of key raw materials
-Longer-than-expected qualification process time for
new product approval
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