We maintain our HOLD recommendation with the target price of Rs 3,930/share, valuing the stock at a multiple of 38x FY24E EPS.
Navin Fluorine (NFIL) reported a marginal miss on revenues (-5% est.), although EBITDA was 11% below our estimates, weighed by higher other expenditure. Thus, despite gross margin expansion of 200bps QoQ to 55%, the EBITDA margin contracted 120bps QoQ to 24.8%. The management has highlighted that the gross margin is likely to be under pressure as one of the key raw materials saw a significant price increase in 1QFY22 which is likely to continue for another quarter. Furthermore, a large mineral mine was closed down due to labor issues and is expected to resume...
The company has two manufacturing facility in Surat and Dewas while it is setting up a new greenfield capacity at Dahej In terms of revenue contribution, speciality chemical constitutes 40% of overall revenue followed by CRAMS of 25% and rest from refrigerant (~18%) and inorganic fluoride (~17%) businesses Q1FY22 Results: Revenue was almost in line with our estimates while PAT came...
The sharp stock outperformance in the near term has caused valuations to rise beyond its 3/5yr avg and we would await a better entry point and thus downgrade the stock to HOLD (from a previous BUY) while valuing the stock at 38x FY24E EPS to arrive at a TP of Rs 3930/share.
We initiate coverage with a BUY recommendation and value the stock at 38x of its FY24x EPS with a target price of Rs.3,930/share, implying an upside of 17%.
The company has been undertaking a capex of | 195 crore for the speciality chemical segment along with HPP plant with a capex of | 436 crore already in construction. The asset turn is expected to be around 1.3-1.5x. This would entail strong growth for high value segment. In turn, this translates into higher gross margins and thereby operational performance. We also expect that since the company is already working on more than 20 molecules for speciality chemical segment, this should support double digit revenue growth for the segment. Further, higher utilisation for CRAMS should...
Navin Fluorine reported topline growth of 19% YoY to | 309 crore against our estimate of | 305 crore. The growth was largely led by the CRAMS, speciality chemical segments, which were up 51% YoY, 26% YoY to | 71 crore, | 122 crore, respectively. Revenue from inorganic fluoride remained higher by 12% YoY to | 57 crore while the same from refrigerant was down 18% YoY to | 47 crore. Despite the value added segments, revenue remained higher compared to legacy business. Gross margins for the quarter fell 342 bps YoY to 53.9%, leading to lower than expected EBITDA...
Navin Fluorine has outlined capital expenditure for setting up a multipurpose plant (MPP) with an outlay of | 195 crore. The capex will be undertaken by its wholly owned subsidiary, Navin Fluorine Advanced Sciences Ltd at Dahej, Gujarat. The new capacity is expected to come on stream during H1FY23 and will create opportunities for new products in life science and crop science sectors in the specialty chemicals business. The company has already identified potential 12 new products of which five are going to be commercialised initially, which find application in crop protection. This new capacity would retain a mix of 50:50 among life science...
Navin Fluorine International Ltd (NFIL IN) reported a stellar 2QFY21 performance. Sales/EBITDA/PAT beat our estimates as Sales grew by 16.8% YoY to Rs 3.19bn (D.est: Rs 2.56bn)....
Navin Fluorine International Ltd (NFIL) reported a topline growth of ~9.5% YoY to `2766mn on the back of robust growth in its segments such as specialty chemicals and CRAMS which surged by ~52% & ~26% YoY respectively in Q4FY20. Specialty Chemicals recorded higher growth due to strong performance in domestic & export markets driven by higher volumes and CRAMS business due to its strong order book position in Q4FY20. However, the robust performance in mentioned segments was offset...
Navin Fluorine reported in-line standalone Sales at Rs 2.65bn, up by 8.5% YoY (D.est: Rs 2.61bn). EBITDA grew by 28.7% YoY to Rs 672mn. Reported PAT stood at Rs 2.68bn owing to a favorable court order from the IT appellate tribunal pertaining to its case related to classification of receipts on account of Certified Emission Reduction (CER) as capital receipts not chargeable to tax from financial year 2007-08 to financial year 2012-13. NFIL witnessed a strong gross margin expansion of 426 bps YoY to...
We tweak our FY21/22E EPS estimates by +3.1/3.7% to INR 46.9/65.0 to factor-in the companys performance in 4QFY20. We retain our ADD rating on NFIL with a TP of INR 1,721 on the back of (1) Earnings visibility given the long term contract, and (2) Tilt in sales mix towards high margin customised products. The stock is currently trading at 24.6x FY22E EPS, which is low, given the RoIC of 20.0/23.0% in FY21/22E.
We recently met Sitendu Nagchaudhuri, Chief Financial Officer of Navin Fluorine International (NFIL), to get an insight into the domestic fluorination chemistry industry and the companys role in the entire value chain. NFIL was set up in 1967 primarily as a key manufacturer of refrigerant gases, inorganic fluorides in India in Surat (Gujarat). Refrigeration gases are used as a cooling agent in air conditioners, refrigerators and commercial establishments while inorganic fluorides are used as a raw material for industrial use primarily in the metal and glass...
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