Stock Snapshot: Alufluoride Ltd (ALUFLUOR)
Current Market Price (CMP): ₹411.90 (as of May 9, 2025)
Market Capitalization: ₹322 Crore
Sector: Specialty Chemicals – Inorganic Fluorine Compounds
🏭 Company Overview
Alufluoride Ltd is India’s largest producer of Low Bulk Density Aluminium Fluoride (AlF₃), a vital input for the aluminium smelting industry. The company employs a unique technology developed by Alusuisse, Switzerland, converting fluorine effluents from phosphatic fertilizer complexes into hydrofluosilicic acid and subsequently into aluminium fluoride, effectively turning waste into wealth.
📈 Key Financial Highlights (FY24)
Revenue: ₹161.91 Crore, up from ₹136.11 Crore in FY23
Net Profit: ₹22.1 Crore, up from ₹18 Crore in FY23
Net Profit Margin: 12.71%
Return on Equity (ROE): 22%
Operating Cash Flow: ₹36 Crore
Promoter Holding: 59.94%
🏗️ Operational Milestones
Capacity Expansion: The Visakhapatnam plant’s capacity has been expanded to 15,000 TPA, enhancing production capabilities.
Energy Efficiency: Installation of a 3 MW solar plant in Visakhapatnam aids in reducing operational costs and carbon footprint.
International Ventures: Incorporation of Jordan Alufluoride (JAIF) in collaboration with Jordanian partners to tap into Middle Eastern markets.
🚀 Growth Drivers
Rising Aluminium Demand: Global emphasis on infrastructure and electric vehicles boosts aluminium consumption, indirectly benefiting Alufluoride.
Import Substitution: Domestic production reduces reliance on imports, aligning with the ‘Atmanirbhar Bharat’ initiative.
Environmental Compliance: Innovative waste-to-wealth processes position the company favorably amid stringent environmental regulations.
💡 Investment Thesis
Alufluoride Ltd stands out as a niche player in the specialty chemicals sector, boasting strong financials, strategic expansions, and sustainable practices. Its consistent growth trajectory and commitment to innovation make it a compelling consideration for long-term investors seeking exposure to the chemical industry.
Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. Please consult with a financial advisor before making investment decisions.