Navin Fluorine - Top Level Exits A Valid Concern: IDBI Capital

IDBI Capital Report

We attended the call held by Navin Fluorine International Ltd. to update on the resignation of the Chief Executive Officer, Radhesh Welling. Vishad Mafatlal, the Chairman handled most of the queries.

The search for a senior professional as a successor is underway and will be updated in due course. The management mentioned that all the top clients have been informed about this transition and all of the major capex is on track although there could be slight delays of a quarter or so.

Although the management did attempt to assuage investor concerns by stating that major capex plans and client engagements stay on track, we believe that recent exits of the contract development and manufacturing organisation head and the CEO are valid concerns warranting a cut in target multiple.

We maintain our 'Buy' rating with a downward revised target price of Rs 4,625 at 40 times FY25E (earlier 45 times) earnings.

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