- Navin Fluorine's Q1 net profit doubled to Rs 243 crore year-on-year
- Jefferies raised target price to Rs 9,045 and maintained a buy rating
- Citi raised target price to Rs 7,200 but maintained a sell rating
Navin Fluorine has bagged price target target hikes from Jefferies and Citi after first quarter earnings largely beat expectations. A strong pipeline of orders, and new capital expenditure initiatives also back the brokerages TP raises.
However, while it hiked TP to Rs 7,200 from Rs 6,500, Citi has maintained a 'sell' call on the stock, citing unfavourable risk-reward ratio. The brokerage flagged that the stock is up 50% over the past year, partly factoring in the recent earnings strength.
Citi sees downside risk to refrigerant gas R32 pricing in India over the next year. NFIL's India's capacity is increasing from 44 kilotonnes per annum to 133 kilotonnes per annum, and a $1/kg price change in R32 pricing will hit the fluorochemical manufacturer's FY28 Ebitda margin by 14%.
Jefferies, on the other hand, maintains a 'buy' call on the stock and has raised its price target from Rs 8,700 to Rs 9,045 on the back of strong earnings, and valuation being below the long-term average.
The brokerage further outlined that the company's strong pipeline in CDMO and cooling products, and participation in new molecules in spec chem anchor medium-term growth.
Jefferies added that new capex in advanced materials will create another growth engine in the medium-term, and has upgraded its net profit growth expectations to 8% for the current fiscal and 4% for FY28, it also projected 23% Earnings Per Share Compound Annual Growth Rate (CAGR) over FY26-29.
Navin Fluorine Q1FY27
Navin Fluorine International posted a strong set of June-quarter results, with higher revenue and improved operating efficiency driving a sharp increase in profit.
The specialty chemicals maker posted a consolidated net profit of Rs 243 crore for the first quarter, more than doubling from Rs 117.1 crore in the corresponding period last year.
Revenue from operations climbed 44% year-on-year to Rs 1,045 crore, compared with Rs 725 crore a year earlier, reflecting strong business momentum across its operations.
Earnings before interest, tax, depreciation and amortisation rose 72.6% to Rs 357 crore, up from Rs 207 crore in the year-ago period. The company's Ebitda margin expanded to 34.2%, compared with 28.5% in the same quarter last year.
Navin Fluorine Share Price
The stock ended 0.26% lower at Rs 7,609.50 apiece on the NSE on Wednesday.
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