Shares of Navin Fluorine International surged over 6 percent on Tuesday to hit a fresh 52-week high after Jefferies reiterated its ‘buy’ rating on the stock, citing expectations of strong earnings growth from capex monetisation.
The stock rose 6.22 percent to Rs 4,794.30 apiece on the NSE, marking a new 52-week high.
According to Jefferies, Navin Fluorine is well-positioned to monetise USD 2 billion worth of capex undertaken over the past three years through long-term contracts. The brokerage has set a target price of Rs 5,280.
"This should improve asset turns and drive 35 percent EPS CAGR over FY25-27E. The pipeline of new contracts in specialty chemicals, CDMO, and high-performance products (HPP) should fructify in FY26 and provide growth visibility FY28 onwards," Jefferies said in a note.
Jefferies bullish on Navin Fluorine as it expects Rs 2,000 cr capex to drive EPS growth
The upbeat sentiment also lifted other chemical stocks. Coromandel International rose 2.39 percent to Rs 2,320 per share on the NSE. Balaji Amines gained 0.10 percent to trade at Rs 1,447.70.
Earlier, chemical players PI Industries and Navin Fluorine bagged a rating upgrade from international brokerage Morgan Stanley, as the outlook for the chemicals segment becomes more optimisitc.
Navin Fluorine was upgraded, moving to 'Equal-weight' from 'Under-weight', with its target price revised upward by 28 percent to Rs 4,160 from Rs 3,242. The foreign brokerage noted that while FY25 was marked by subdued demand and pricing pressures, the outlook for the sector appears to be turning more constructive.
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