Upgrades

We roll forward our valuation to Sept’27 and value Navin Fluorine at 46.0x Sept’27E EPS, implying a target price of INR 6,182.

Q2FY26 Strong set of numbers; beat across all parameters- Revenues in Q2FY26 stood at 758 crore, up 46% YoY. Segment wise, all three segments reported a strong growth with HPP (Refrigerants +Inorganic Fluoride + HPP, 53% of revenue), up 38% YoY, Speciality Chemical (29% of revenue), up 39% YoY and CRAMS (18% of revenue) witnessing a growth of 97% YoY. EBITDA for the quarter stood at 246 crore, up 129% YoY translating into margins of 32.5%, up ~1200 bps. Relentless expansion based on visibility; Upward margins guidance based...

We revise our rating to BUY from HOLD.

Navin Fluorine International (NFIL) had a strong Q2FY26 print with surprise on margins; it delivered sustainable EBITDA margin at ~30% (earlier: 25%). Further, NFIL has announced a fresh capex for R32 (adding 15ktpa capacity), and expansion in MPP.

Navin Fluorine International (NFIL) delivered a solid performance in the quarter. Revenue for HPP, Specialty Chemicals and CDMO grew by 38%,39% and 98% respectively on YoY basis. Margins increased by ~ 12 percentage points YoY to ~33% majorly owing to volume led growth. All the 3 business verticals of HPP, Specialty Chemicals and CDMO have strong revenue visibility for FY26 and FY27. With R32 demand environment remaining tight, the management is expanding R-32 capacity by 15,000 MTPA which we believe is a step in the right direction We fine tune our FY26 and FY27 estimates to bake in higher growth. We upgrade...

We have revised our PAT estimates for FY26E/FY27E by +1.4/+2.3%, respectively, to factor in the higher EBITDA margin led by normalization on account of improved operating leverage, higher capacity utilization and led by cost optimization and efficiency improvement programs.

Recommend a BUY rating on the stock with a TP of Rs 5,140/share, implying an upside of 10% from the CMP.

Following the recent price correction, we upgrade the stock to HOLD' with a revised target price of Rs1,883, valuing it at 32x FY27E EPS. DN's Q1FY26 adjusted revenue stood at Rs18.7bn, declining to 13.6% YoY and 7% QoQ. Operating performance was impacted by ongoing pricing pressure, oversupply from China, and a decline in spreads. The Advanced Intermediates segment witnessed stable volumes across most products, except agrochemical intermediates, which were affected. The Phenols segment reported steady...

We attended the Navin Fluorine International Limited (NFIL) analyst meet, where management discussed demand trends, company strategy, and outlook across key segments. The planned capex of INR7b-10b will be deployed without impacting return ratios. Detailed capex plans will be announced in the next six months.

We maintain our HOLD rating on the stock.

Quarterly Update Q1FY26

We maintain our HOLD rating on the stock.

R32 plant commercialized in Mar' 25, running at optimum utilization at Rs7.3bn, up 38.5% YoY and 3.5% QoQ, broadly in line with our estimates. Growth was primarily driven by exceptional performance in the HighPerformance Products (HPP) segment, which registered a robust 44.8% YoY increase, supported by strong demand and better realizations for refrigerants. The newly commissioned R32 plant is already operating at optimal utilization....

Navin Fluorine International (NFIL) delivered strong performance in the quarter. Revenue for HPP, Specialty Chemicals and CDMO grew by 45%,35% and 22% respectively on YoY basis. Higher volumes and pricing of R32 led to strong growth in HPP segment. Specialty Chemicals segment is witnessing healthy capacity utilization with NFIL focusing on volume led growth. Order book prospects for CDMO are sanguine with continued pipeline of RFQs and orders. We fine tune our FY26 and FY27 estimates to bake in higher growth. We maintain our HOLD rating with revised TP of Rs 5,001 at 45xFY27 expected earnings....

TCL faces short-term challenges, including sluggish demand in the US and Europe and decreasing export prices in the US market, as well as downward pressure on *over or under performance to benchmark index margins due to declining soda ash prices. However, the company is well-positioned for growth, driven by its strategic emphasis on speciality products and capacity expansion plans. A recovery in volumes and margins is anticipated in the next fiscal year, led by the Indian and Kenyan markets. The UK business is expected to show signs of improvement from the second quarter, driven by its new pharmaceutical...

HPP/CDMO see 10%/115% YoY revenue growth: Consolidated revenue stood at Rs7bn (16.4% YoY/15.6% QoQ), (PLe: Rs6.23bn, Consensus: Rs6.7bn). FY25 revenue for the company improved by 13.8% to Rs23.5bn. Gross profit margin was 54.2% (vs 50% in Q4FY24 and 56.6% in Q3FY25). Absolute Gross profit was Rs3.8bn, increased QoQ by 10.7% and YoY by 26.2%. HPP and CDMO segment saw a revenue increase of 10% and 115% respectively, while...

We change our rating on the stock from BUY to HOLD.

In our view, ACI has a plethora of opportunities – each carrying strong value creation potential – along its path ahead. Right off the bat, the expansion in bromine derivatives, and thus, higher captive bromine consumption would likely provide a strong fillip to ACI’s bromine business.

We recommend a BUY on the stock with a target price of Rs 4,300/share, implying an upside of 10% from the CMP

Due to sharp correction in price, we upgrade to HOLD with TP of Rs.1,960. Deepak Nitrite's (DN) Q3FY25 revenue stood at Rs19bn, down 5.3% YoY and 6.3% QoQ. Operating performance for the quarter was impacted as plants remained idle due to deferral in demand, lag adjusted recovery in agchem, increase in RM cost as well as oversupply from Chinese counterparts. Planned maintenance shutdown at its phenolics plants further led to a decline in performance and an increase in phenol imports. Nitric acid project is expected...