Neutral Navin Fluorine International; target of Rs 5100: Motilal Oswal

Motilal Oswal's research report on Navin Fluorine International

We attended the Navin Fluorine International Limited (NFIL) analyst meet, where management discussed demand trends, company strategy, and outlook across key segments. The planned capex of INR7b-10b will be deployed without impacting return ratios. Detailed capex plans will be announced in the next six months. Strategic focus remains on scaling the HF business and accelerating the adoption of electronic-grade HF through its partnership with Buss ChemTech. R32 sales to the US comprise ~25% of total revenue, with 15% protected under anti-dumping duties, offering partial pricing support.

Outlook

We expect a revenue/EBITDA/adj. PAT CAGR of 28%/37%/41% over FY25-27. The stock is trading at ~45x FY27E EPS of INR116.1 and ~27x FY27E EV/EBITDA. We value the company at 45x FY27E EPS to arrive at our TP of INR5,100. Valuations remain expensive; thus, we reiterate our Neutral rating.