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Buy Navin Fluorine; target of Rs 3040: ICICI Direct

ICICI Direct is bullish on Navin Fluorine recommended buy rating on the stock with a target price of Rs 3040 in its research report dated December 17, 2020.

December 17, 2020 / 03:40 PM IST
 
 
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ICICI Direct's research report on Navin Fluorine


Navin Fluorine has outlined capital expenditure for setting up a multi-purpose plant (MPP) with an outlay of Rs 195 crore. The capex will be undertaken by its wholly owned subsidiary, Navin Fluorine Advanced Sciences Ltd at Dahej, Gujarat. The new capacity is expected to come on stream during H1FY23 and will create opportunities for new products in life science and crop science sectors in the specialty chemicals business. The company has already identified potential 12 new products of which five are going to be commercialised initially, which find application in crop protection. This new capacity would retain a mix of 50:50 among life science and crop protection in the long run. The management expects better margins for this new venture with an asset turn of 1.35-1.45x.



Outlook


We upgrade our PER multiple to 40x (1.4x PEG) from 35x PER of FY23E. We arrive at a target price of Rs 3040. We have a BUY recommendation on the stock.


For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: Dec 17, 2020 03:40 pm

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