Buy Navin Fluorine International; target of Rs 6480: ICICI Securities

ICICI Securities's research report on Navin Fluorine International

Navin Fluorine International (NFIL) had a strong Q2FY26 print with surprise on margins; it delivered sustainable EBITDA margin at ~30% (earlier: 25%). Further, NFIL has announced a fresh capex for R32 (adding 15ktpa capacity), and expansion in MPP. Company is hitting a virtuous cycle with strong operating profit driving higher FCF generation, supporting higher reinvestment (NFIL aspires for annual capex of INR 10bn) which could sustain high growth. Also, business is shaping up well with balanced portfolio including agrichem, pharma, industrials and new-age applications.

Outlook

Our FY26/27E EPS has been revised upwards by 25-30%; raise TP to 6,480 (from INR 4,450) with an unchanged PE multiple of 40x, but we roll over to Sep’27E. Upgrade to BUY (from Reduce) as NFIL appears to be well positioned to benefit from virtuous cycle and improved execution.