Navin Fluorine Gets Target Price Upgrade From ICICI Securities; Says New Projects, Ref-Gas To Drive Growth

ICICI Securities Report

We maintain Buy on Navin Fluorine International Ltd. as we expect the company to report strong H2 FY25E with revenue/ Ebitda / PAT growing by 31%/ 90%/ 31% YoY, respectively. We expect this to be driven by higher prices for R-32, commissioning of Project Nectar, new plant in Surat (Gujarat) and higher sales from Fermion.

We expect revenue / Ebitda / PAT CAGR of 17%/ 27%/ 32% over FY25-27E, sustaining good growth. Our FY25-27 estimates do not completely include commissioning of HF plant, price rise in R-32 and Navin Fluorine’s ambition to scale contract development manufacturing organisation revenue to $100 million. We cut EPS by 2.2% for FY25E, but 9.6% for FY26E assuming continued capex and lower deleveraging may support growth. Ebitda cut in FY26E is just 0.6%.

We roll over valuations to FY27E, and increase target price to Rs 4,270 (from Rs 3,800) with an unchanged P/E multiple of 40 times.

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