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GFL Ltd. Stock Analysis

Small Cap
Evaluated by 1500 users | BSE: 500173 | NSE: GFLLIMITED |
Chemicals
Gujarat Fluorochemicals (GFL) is engaged in manufacturing of chloro-fluorocarbon refrigerant gases and hydrous hydrofluoric acid. GFL is part of the $2 billion INOX group of companies. The INOX group has interests in areas of industrial gases, refrigerants, chemicals, carbon credits, cryogenic...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
GFL Ltd. has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
Value Creation
Value Creation Index Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 10.96%30.86%15.89%3.16%6.1%3.43%4.31%9.61%29.58%1.16%
Value Creation Index -0.271.050.06-0.79-0.59-0.77NANANANA
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 1,0292,1181,5971,1411,3211,3341,4282,0562,7310
Y-o-Y Gr. Rt.-105.9%-24.6%-28.6%15.8%1%7%44%32.8%-100%
Adjusted EPS (Rs.) 19.7170.8641.575.9615.577.9311.5431.5116.83.1
Y-o-Y Gr. Rt.-259.5%-41.3%-85.7%161.2%-49.1%45.5%173%270.8%-97.4%
Book Value per Share (Rs.) 159.05194.97227.15229.83259.95262.77276.41316.72428.67108.52
Adjusted Net Profit 21777845765.417187.11273461,28334.1
Net Op. Cash Flow (Rs. Cr.) 28442636733381.5300300352579-13.4
Debt to Cash Flow from Ops 2.0522.362.118.81.592.12.1300
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
GFL Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales -100%-100%-100%-100%
Adjusted EPS -18.6%-27.6%-35.5%-97.4%
Book Value per Share -4.2-16-26.8-74.7
Share Price -18.7% -34.2% -54.7% 2.5%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 13.2240.0319.692.616.363.034.2810.6231.341.16
Operating Profit Margin (%) 34.4760.2749.5316.9821.0620.4221.3828.1728.70
Net Profit Margin (%) 21.0536.7528.65.7312.956.538.8816.8446.990
Debt to Equity 0.330.40.350.280.250.170.210.2200
Working Capital Days 2151522493502992912902712770
Cash Conversion Cycle 39351081641481591411051180
Entity Percentage Holding
Promoters 68.72%
Institutions 8.92%
Non-Institutions 22.35%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of GFL Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that GFL Ltd. is a average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of GFL Ltd.'s performance infers:

GFL Ltd. earnings have declined by -27.6%, whereas share price has depreciated -34.2% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of GFL Ltd. share prices over the last 10 years. Here is what we found out:

GFL Ltd. share price has depreciated -8.1% annually over the past ten years.

Gujarat Fluorochemicals (GFL) is engaged in manufacturing of chloro-fluorocarbon refrigerant gases and hydrous hydrofluoric acid. GFL is part of the $2 billion INOX group of companies. The INOX group has interests in areas of industrial gases, refrigerants, chemicals, carbon credits, cryogenic engineering, renewable energy and entertainment.

GFL’s manufacturing plants have received various certifications such as ISO 9001:2000, OHASAS 18001:2007 and ISO14001:2004.

The company's CDM

Gujarat Fluorochemicals (GFL) is engaged in manufacturing of chloro-fluorocarbon refrigerant gases and hydrous hydrofluoric acid. GFL is part of the $2 billion INOX group of companies. The INOX group has interests in areas of industrial gases, refrigerants, chemicals, carbon credits, cryogenic engineering, renewable energy and entertainment.

GFL’s manufacturing plants have received various certifications such as ISO 9001:2000, OHASAS 18001:2007 and ISO14001:2004.

The company's CDM (Clean Development Mechanism) project was the first in the world to seek registration under the Kyoto Protocol, and has been approved by the governments of India, United Kingdom, Netherlands, Japan and Italy.

INOX Leisure, India’s leading cinema exhibition business is a subsidiary of GFL.

In 2012 Gujarat Fluorochemicals Ltd has transferred, by way of slump sale, the wind energy business of the Company including all the undertakings comprised therein to INOX Renewables Ltd, a subsidiary of the Company.

Business area

Refrigerant Business- The company is the largest producer of refrigerant HCFC22. Around 95% of GFL’s refrigerant production is exported to more than 75 countries. In India, the company supplies refrigerants to all the major OEMs in the air-conditioning and refrigeration sector.

Chemicals Business- The company’s chemical plant is located at Dahej (Gujarat) has a manufacturing capacity of a 52,500 tpa of Caustic Soda / Chlorine, a 40,000 tpa Chloromethane, and a 30 MW gas-based captive power plant. GFL has also established an Anhydrous HCL plant, the first of its kind in India, and only the third in Asia, to cater to the pharmaceutical and agriculture sectors in India.

PTFE Business- The company owns India’s largest PTFE plant located at Dahej with production capacity of 6,000 tpa. PTFE is advanced engineering plastic used in sectors like chemicals, textile, automobile, electrical, electronics.

Entertainment Business 

GFL owns and operates an entertainment business through INOX Leisure Limited. INOX Leisure Limited is engaged in the setting up and operating India’s premium brand of multiplex cinema theatres - INOX. INOX currently operates 79 multiplexes with 310 screens & 83809 seats and is present in 42 cities making it a truly pan-Indian multiplex chain. INOX has won the ICICI Best Retail Entertainment Company of the Year Award, 2005, the Taal Multiplexer of the Year Award, 2006 and the Emerging SuperBrand of the Year Award, 2007. In 2010, INOX Leisure Limited had acquired Fame India Limited, a competing multiplex chain, to emerge as India’s largest multiplex player then. INOX is amongst India’s largest integrated multiplex brand, as well as amongst India’s fastest growing and most profitable multiplex chain.
 
Renewable Energy Business
On the basis of a business diversification study conducted by McKinsey & Co Inc. for the Group, GFL decided to invest in the renewable energy business. Having worked in detail on the concept development for this initiative over the past couple of years, GFL has firmed up its business plan and is in the process of aggressively implementing the same.

Subsidiaries of GFL include:

  • Inox Leisure Limited .
  • INOX Wind Limited
  • Inox Renewables Limited
  • Gujarat Fluorochemicals Americas LLC
  • Gujarat Fluorochemicals GmbH



Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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