Dolat Capital Market's research report on Navin Fluorine International
Navin Fluorine International Ltd (NFIL) reported a healthy consolidated sales growth of 18.7% YoY to Rs 3.09bn (marginal sequential de-growth of 3.1%). EBITDA grew by 22.9% YoY to Rs 805mn and PAT growth stood at 29.7% YoY to Rs 589mn. NFIL’s growth momentum in new-age businesses aided higher profitability, as order enquiries in CRAMS and small de-bottlenecking capex’ bear fruits. Headwinds in refrigerant gases are yet to relinquish, as realisations and volumes of R-22 gas continue to be under-pressure. While Inorganic fluorides business has now seen a couple of client addition – which could improve growth visibility in ensuing quarters.
We have fine-tuned our estimates and upgrade our rating to Buy. We have a target price of Rs 3,115/share on the basis of SOTP valuation (Exhibit 1) on FY24E EBITDA.