Gujarat Fluoroch (FLUOROCHEM)

FairStock Score: 45/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am looking at Gujarat Fluoroch as a specialty chemicals business with a ₹52,045 Cr market cap at ₹4,737.80 per share. Graham's first question is what I get for that price. Book value is ₹696.70, so P/B is 6.80. The Graham Number is only ₹942.12, leaving a margin of safety of -269.73%. That is not a bargain; it is an expensive asset unless future growth is exceptional. The P/E is 84.74 and EV/EBITDA is 135.98, both demanding. PEG ratio 0.59 looks less alarming, but it relies on growth that has recently been modest: sales growth 9.32%, profit growth 8.65%, and a five-year revenue CAGR of 12.70%. Latest quarter sales were ₹1,136 Cr with ₹102 Cr net profit. Returns are not stellar: ROE 9.05% and ROCE 9.89%, below what I want from a high-quality compounder. I cannot identify a clear moat from these figures; low returns and negative free cash flow suggest limited pricing power or capital intensity. On the positive side, debt/equity is only 0.29, Altman Z-score 3.69 suggests low bankruptcy risk, Piotroski F-score 6/9 is decent, and promoter holding is 61.39%, aligning owners. But free cash flow is -₹576 Cr and dividend yield is just 0.06%, so the business is consuming cash. FairStock Score 45/100 (MIXED) matches my hesitation. The stock sits near the upper end of its 52-week range of ₹2,916.60–₹4,958.90, so optimism is already priced in. I would call it a Stalwart candidate only if returns and cash flow improve; otherwise the valuation leaves no margin of safety.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer