It has lots of things going for it -

 

 

- Largest manufacturer of refrigerants in India (25% market share). The chemicals business has a EBIT of 16%.

 

- 90% of Guj Fluoro production is exported. 

 

- Company is diversifying into manufacture of PTFE, caustic soda, chlorine etc.

 

The chemicals business contributed around Rs. 200 crores to FY07 topline.

 

OTHER REVENUE CONTRIBUTORS:

 

- Guj Fluoro will earn about 85 lac carbon credits per annum thanks to the implentation of Clean Development Mechanism. At the current prices for carbon credits, Gujarat Fluoro will earn a recurring income of Rs. 400 crore to Rs. 500 crore per annum in the future.

 

- Gujarat Fluoro is the main promoter of Inox Leisure with 65% stake. Inox contributed 18% to consolidated FY07 topline of Guj Fluoro. While the current marketcap of Inox Leisure alone is Rs. 720 crore, the overall marketcap of Gujarat Fluoro is just Rs. 3,700 crores!

 

- Gujarat Fluoro has investments in equities and mutual funds worth Rs. 600 crores.

 

 

 

 

I went through past 5 yrs financials and they look very impressive. Mgmt is also run by IIT grad people in chemical engg.

 

Though recent result talks about some dispute over contract with gas supplier which may impact the earning if cout rules aginst it.