Dolat Capital recommended accumulate rating on Navin Fluorine International with a target price of Rs 1657 in its research report dated June 18, 2020.
Dolat Capital's research report on Navin Fluorine International
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 54.4% with improved business mix, depreciation up 59.8% YoY to Rs 102mn while employee costs went up 29.0% YoY to Rs 300mn.
However, given the recent run-up in the stock price and we have changed multiples in our SOTP valuation, we recommend investors to accumulate the stock at CMP. We have revised our target price to Rs 1,657/share.
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