Accumulate Navin Fluorine International; target of Rs 4373: Prabhudas Lilladher

Prabhudas Lilladher's research report on Navin Fluorine International

Navin Fluorine International (NFIL) reported a revenue of Rs6bn (20.8% YoY/ 17% QoQ). The topline was 7% higher than our estimates of Rs5.7bn. This growth was largely driven by HPP vertical which saw 22% YoY revenue growth, driven by higher volumes for HFO and R32 and improved price realization across product. Expansion of R-32 capacity is on track and is expected to be commissioned in Feb’25, while AHF capex shall be commissioned by early FY25. Specialty chemicals segment recorded 26% increase in sales leading to higher utilization at Dahej and Surat. The management guided a strong order visibility for this segment in Q4FY25 and beyond into FY26. One new molecule is expected to be introduced in Q4FY25 and second in Q1FY26. CDMO vertical saw 8% YoY increase; revenue is targeted to reach USD100mn in FY27, with order received from EU major and a scale order received from US major.

Outlook

We believe long-term fundamentals of the company are intact and strong order visibility will drive growth. The stock is currently trading at 45x FY27E EPS of Rs87. We value the company at 51x FY27 EPS to arrive at TP of Rs4,373. We maintain ‘Accumulate’ on the stock.

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Navin Fluorine International - 31012025 - prabhu