Shares of Gujarat Flurochemicals hit a new high of Rs 3,995, up 2 per cent on the BSE in Friday’s intra-day trade on healthy outlook. The stock of the specialty chemicals company traded higher for the fourth straight day, surging 11 per cent during the period.
In past one month, the stock has rallied 20 per cent, as compared to a 5 per cent decline in the S&P BSE Sensex. Further, in past one year, the stock has zoomed 109 per cent, as against 4 per cent fall in the benchmark index.
Gujarat Fluorochemicals is engaged in manufacturing and trading of refrigerant gases, caustic soda, chloromethane, polytetrafluoroethylene (PTFE), fluoropolymers, fluoromonomers, specialty fluorointermediates, specialty chemicals and allied activities. The company caters to both domestic and international markets. Further, the company has emerged as one of the top five global players in the fluoropolymers market with exports to Europe, Americas, Japan and Asia.
Prime Minister Narendra Modi is officially going to inaugurate the first 5G mobile services commercially on Saturday (October 1), at the India Mobile Congress (IMC) 2022.
Adoption of 5G-enabled smartphones in India is expected to triple and contribute to 40 per cent of sales volume in 2022, against just 12 per cent in 2021. This, in turn, will drive the fluoropolymers market and benefit the Gujarat Fluorochemicals.
In the long term, the strong focus of Governments around the world on green hydrogen and hydrogen fuel cells will boost the demand of PTFE and other fluoropolymers. In the Union Budget this year, the government has given special emphasis on the EV sector, that will propel the usage of fluoropolymers, Gujarat Flurochemicals said in FY22 annual report.
Key auto manufacturers are increasingly manufacturing their automotive parts by fluoropolymer enabling automakers to build a more sustainable and dependable business environment. The introduction of stringent government regulations concerning safety and reduction of emissions are some of the factors compelling the utility of fluoropolymer.
Polytetrafluoroethylene (PTFE) is a synthetic fluoropolymer of tetrafluoroethylene. Being a non-wetting, high density and resistant to high temperatures, PTFE is an incredibly versatile material with a wide variety of applications.
Over the short term, the major factors driving the market’s growth is the increasing applications in the electrical and electronics sector and the chemical and industrial processing industry segment, and it is expected to continue their dominance during the forecast period. Besides, the growing healthcare applications are expected to provide opportunities to the market, the company said.