HDFC Securities is bullish on Navin Fluorine International has recommended buy rating on the stock with a target price of Rs 915 in its research report dated July 26, 2018.
HDFC Securities's research report on Navin Fluorine International
Sales/EBITDA/RPAT came in at Rs 2.43bn/Rs 631mn/Rs 396mn. Adjusting for the one-off gain and M2M loss in the other income, PAT came in at Rs 400 mn (7.4% below our estimates) NFIL witnessed good traction within the specialty chemicals segment (up 51.9% YoY to Rs 820mn) on the back of recovery in the domestic pharma business. The Refrigerant gases segment grew by 6.9% YoY to Rs 770mn, while Inorganic fluorides segment grew by 75.0% YoY to Rs 490mn. CRAMS segment declined by 30% YoY to Rs 350mn (adjusting Rs 220mn for Dahej unit in 1Q’18). We do not read much into quarterly performance for CRAMS segment due to its lumpy nature and continue to remain positive of a pickup in the ensuing quarters.
We value NFIL at 22x June’20 EPS. We maintain our Buy rating with a target price of Rs 915.
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