Navin Fluorine Gets Target Price Hike As Jefferies Sees Strong Growth

Navin Fluorine International delivered revenue in line with Jefferies' estimates in the fourth quarter, supported by higher-than-expected revenue from CDMO and high-pressure processing segments. However, the bottom line was 5% below Jefferies' estimates on higher depreciation from the commissioning of an agrochemical fluorospecialty plant, Jefferies said.

The company is expecting a commercial order in the CDMO segment from a US major in the financial year 2026, which could ramp up its Fermion contract as well. In addition to this, Navin Fluorine International has received an order from a European customer which will start in the current financial year. Phase I of cGMO4 will likely start commissioning in the third quarter of the financial year 2026, which will also contribute to its growth in the near-term, Jefferies said.

For its contract with Chemours, Navin Fluorine International will establish a plant with estimated capital expenditure of $14 million to produce hydrofluoroolefins under HFO Opteon2-phase. Chemours will contribute $5 million to the capital expenditure, Jefferies said. The Opteon line is growing strong in double digits as Chemours is providing an interesting optionality for Navin Fluorine to scale in the future.