Reduce Navin Fluorine; target of Rs 3500: Emkay Global Financial

Emkay Global Financial's research report on Navin Fluorine

We visited Navin Fluorine’s plant based in Dewas, Madhya Pradesh which caters to its CDMO business vertical. The company manufacture pharma intermediates for commercialized (50-60%) and last-stage molecules. The management revisited its CDMO guidance of USD100mn by FY27 on the back of execution of cGMP-4 phase-1 (dedicated for Fermion) and conviction to start phase-2 expansion in the next 6-12 months, subject to addition of new molecules/clients.

Outlook

The overall tone of new CEO Nitin Kulkarni remains positive wrt all its business verticals, with focus on adding new customers, product lifecycle management, building R&D capabilities, cost rationalization and local sourcing, capacity utilization, and governance. We maintain our REDUCE rating, slightly upping our TP to Rs3,500/sh (rolling over to Sep-26E EPS).

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