Accumulate Navin Fluorine International; target of Rs 5559: Prabhudas Lilladher

Prabhudas Lilladher's research report on Navin Fluorine International

Navin Fluorine International (NFIL) reported its highest-ever quarterly revenue at Rs7.3bn, up 38.5% YoY and 3.5% QoQ, broadly in line with our estimates. Growth was primarily driven by exceptional performance in the HighPerformance Products (HPP) segment, which registered a robust 44.8% YoY increase, supported by strong demand and better realizations for refrigerants. The newly commissioned R32 plant is already operating at optimal utilization. The Specialty Chemicals segment delivered a solid 35.2% YoY growth. Supplies of 3 new molecules are expected to commence from Q2FY26, which should further boost revenue from this segment. Meanwhile, the fluoro specialty unit, operational since Dec’24, is expected to contribute meaningfully in FY26. The CDMO segment grew 23% YoY, with 97% of the revenue coming from exports. Backed by a strong order book for CY25, this segment is well-poised for robust growth, and the management has reiterated its revenue guidance of USD100mn by FY27. We remain positive on NFIL’s long-term outlook. A strong order pipeline, ongoing capacity expansion, and improved realizations are expected to be key growth drivers going forward.

Outlook

The stock is currently trading at 48x FY27E EPS of Rs109. We value the company at 51x FY27 EPS to arrive at TP of Rs5,559. We maintain ‘Accumulate’ on the stock.

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