Accumulate Navin Fluorine International; target of Rs 5161: Prabhudas Lilladher

Prabhudas Lilladher recommended accumulate rating on Navin Fluorine International with a target price of Rs 5161 in its research report dated May 10, 2025.

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May 13, 2025 / 15:09 IST

accumulate

26 Aug, 2025 12:21

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Prabhudas Lilladher's research report on Navin Fluorine International

Navin Fluorine International (NFIL) reported its highest-ever quarterly revenue at Rs7bn, marking a growth of 16.4% YoY and 15.6% QoQ. The topline exceeded our estimate of Rs6bn by 13%, primarily driven by exceptional performance in the CDMO segment, which recorded a robust 115% YoY growth on the back of a strong order book. CDMO orders for CY25 are already secured, and the management has reiterated its revenue guidance of USD100mn from this segment by FY27. The HPP segment posted a 10% YoY increase, supported by higher volumes and improved realizations. The recent expansion of R-32 capacity by 5,000mtpa was commercialized in March’25 and is already operating at optimal utilization levels. Additionally, the ongoing capex for AHF is on track for commissioning by Q2FY26. The Specialty Chemicals segment remained flat YoY, with both the Dahej and Surat facilities running at optimal capacity. Management has indicated strong order visibility for FY26, with two new molecules scheduled to begin commercial supplies in Q1FY26. We believe long-term fundamentals of the company are intact. The strong order pipeline, expanding capacity, and improving realizations are expected to be key growth drivers going forward.

Outlook

The stock is currently trading at 45x FY27E EPS of Rs101. We value the company at 51x FY27 EPS to arrive at TP of Rs5,161. We maintain ‘Accumulate’ on the stock.

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