UBS has maintained a Sell rating on Gujarat Fluorochemicals, setting a target price of ₹3,000 per share. The brokerage noted a soft Q4 performance, with revenue rising 7% sequentially and 8% year-on-year.
UBS highlighted that while the company’s existing business remains steady, its foray into electric vehicle (EV) materials is expected to contribute meaningfully only from FY27 onwards. The EV segment is currently undergoing product trials and will likely require additional capex, with a longer gestation period anticipated.
Reflecting the delayed benefit from the EV business and near-term margin pressures, UBS cut its FY26 and FY27 EPS estimates by 21% and 16%, respectively.
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