Navin Fluorine International Ltd. share price forecast
The 16 reports from 7 analysts offering long term price targets
for Navin Fluorine International Ltd. have an average target of 2487.67. The consensus estimate
represents a downside of -2.25%
from the last price of 2544.90.
Navin Fluorine reported topline growth of 19% YoY to | 309 crore against our estimate of | 305 crore. The growth was largely led by the CRAMS, speciality chemical segments, which were up 51% YoY, 26% YoY to | 71 crore, | 122 crore, respectively. Revenue from inorganic fluoride remained higher by 12% YoY to | 57 crore while the same from refrigerant was down 18% YoY to | 47 crore. Despite the value added segments, revenue remained higher compared to legacy business. Gross margins for the quarter fell 342 bps YoY to 53.9%, leading to lower than expected EBITDA...
CRAMS business, which constituted ~20% of Navin Fluorine International's (NFIL) FY20 revenue is the fastest growing segment for the company. The stock has delivered a whopping ~150% returns over the last one year and a large part of the rerating is attributed to greater visibility in the CRAMS segment. While consensus revenue estimates for CRAMS are more or less similar (~30-35% revenue CAGR over FY20-23E), key variable is the valuation multiple. We are addressing the valuation point wherein we have done detailed comparisons with global CROs/CDMOs in order to justify the valuation. We have come up with some interesting observations (mentioned below), which give us the confidence that CRAMS is a multi-year story &...
We release our 3QFY21 preview for our Mid-cap coverage stocks. We have divided our coverage into two sections as (1) Specialty Chemicals and (2) Other Mid-caps. Also, we have rolled forward valuations to FY23E earnings. There is only one rating change - we have upgraded Navin Fluorine International (NFIL) to Buy from Accumulate. More details are given below. From our Specialty Chemicals coverage universe, we expect companies in the fluorination space, namely SRF and NFIL to continue their growth momentum in 3QFY21. While the demand for refrigerant gases for both the companies would be...
Navin Fluorine has outlined capital expenditure for setting up a multipurpose plant (MPP) with an outlay of | 195 crore. The capex will be undertaken by its wholly owned subsidiary, Navin Fluorine Advanced Sciences Ltd at Dahej, Gujarat. The new capacity is expected to come on stream during H1FY23 and will create opportunities for new products in life science and crop science sectors in the specialty chemicals business. The company has already identified potential 12 new products of which five are going to be commercialised initially, which find application in crop protection. This new capacity would retain a mix of 50:50 among life science...
Navin Fluorine International Ltd (NFIL) has announced capex of INR195cr to set up a multi-purpose plant (MPP) for its Specialty Chemicals business at Dahej
Navin Fluorine International's (NFIL) 2QFY21 performance was significantly ahead of consensus estimates on all parameters. Beat on consolidated revenue/EBITDA/PAT was to the tune of ~16%/~30%/~38%. CRAMS business grew by ~111% YoY, led by ramp-up of cGMP3 capacity and some bunched-up orders from the previous year. The management has increased its expected CRAMS quarterly run-rate from ~Rs500mn to ~Rs650mn (~30% up) going forward. Also, it expects debottlenecking and automation of the unit to in turn increase the potential asset turnover of the business. In CRAMS business, the entire revenue comes from USA and EU pharma...
Navin Fluorine International Ltd (NFIL) reported a topline growth of ~9.5% YoY to `2766mn on the back of robust growth in its segments such as specialty chemicals and CRAMS which surged by ~52% & ~26% YoY respectively in Q4FY20. Specialty Chemicals recorded higher growth due to strong performance in domestic & export markets driven by higher volumes and CRAMS business due to its strong order book position in Q4FY20. However, the robust performance in mentioned segments was offset...
Navin Fluorine reported in-line standalone Sales at Rs 2.65bn, up by 8.5% YoY (D.est: Rs 2.61bn). EBITDA grew by 28.7% YoY to Rs 672mn. Reported PAT stood at Rs 2.68bn owing to a favorable court order from the IT appellate tribunal pertaining to its case related to classification of receipts on account of Certified Emission Reduction (CER) as capital receipts not chargeable to tax from financial year 2007-08 to financial year 2012-13. NFIL witnessed a strong gross margin expansion of 426 bps YoY to...
We tweak our FY21/22E EPS estimates by +3.1/3.7% to INR 46.9/65.0 to factor-in the company's performance in 4QFY20. We retain our ADD rating on NFIL with a TP of INR 1,721 on the back of (1) Earnings visibility given the long term contract, and (2) Tilt in sales mix towards high margin customised products. The stock is currently trading at 24.6x FY22E EPS, which is low, given the RoIC of 20.0/23.0% in FY21/22E.
We recently met Sitendu Nagchaudhuri, Chief Financial Officer of Navin Fluorine International (NFIL), to get an insight into the domestic fluorination chemistry industry and the companys role in the entire value chain. NFIL was set up in 1967 primarily as a key manufacturer of refrigerant gases, inorganic fluorides in India in Surat (Gujarat). Refrigeration gases are used as a cooling agent in air conditioners, refrigerators and commercial establishments while inorganic fluorides are used as a raw material for industrial use primarily in the metal and glass...
Our view: This contract not only shows the trust on NFIL's capability and expertise in complex fluorine chemistry but also could be a precursor to acquire more such deals. Also, the existing contract may be extended further. NFIL's customized and exclusive agreement not only enhances its longterm earnings visibility but also accelerates earnings growth. The management hinted that more products will be added in this new vertical, which we believe will fetch higher margins, thereby boosting NFIL's operational and financial efficiency. It is carving its own niche in fluoro chemicals worthy of a premium multiple over its peer SRF (24.3/19.8x FY21/22x). This compels us to ascribe a higher valuation multiple of 25x vs 20x earlier. Upgrade to NEU with a TP of Rs. 1,479. Navin Fluorine signed a 7 year exclusive supply contract with a global company for High Performance Product (HPP) having a total revenue potential of Rs 29bn starting Q4FY22. The product will be manufactured at the recently announced greenfield plant at Dahej.
The legacy business should continue to grow at a slower pace given that investments are largely flowing into the CRAMS BU. The specialty business is also exhibiting strong traction. Besides, an order in the CRAMS BU gives a near term earning visibility. High-value specialty chemicals and CRAMS BU will help maintain healthy margins. Maintain BUY. We maintain BUY on NFIL after an in-line 1QFY20 with a TP of Rs 821 (20x Jun-21E EPS). We retain our faith in NFIL as its CRAMS BU now demonstrates earnings visibility.
Navin fluorine international ltd reported Sales/EBITDA/PAT de-growth of 0.5/3.8/0.3% YoY to ` 2.41bn/607mn/395mn. Sales were lower than our expectations by 7.5% (D.est: ` 2.6bn), while EBITDA/PAT came in-line with estimates (D.est: ` 577/391mn). Gross margins improved on a sequential basis by 230 bps, while there was a drop on a YoY basis of 250 bps to 52.5%. The company has taken price hikes in Q1FY20 and expects gross margins to be sustainable with fluorspar prices softening. CRAMS revenues weak, however commentary positive...
The legacy business should continue to grow at a slower pace given that investments are flowing into the CRAMS BU. The deferment of campaigns in CRAMS BU raises concerns about lower utilisation. We thus cut our EPS estimates for FY20/21E by 6.5/5.5% to Rs 35.5/40.6. We maintain BUY on NFIL after an in-line 4QFY19 with a TP of Rs 812 (20x FY21E EPS). Investments for the last 7 years have led the CRAMS BU to grow at a CAGR of 52.8% but the earnings outlook remains unpredictable. Growth in the refrigerant gas BU is expected to be muted given the 15% production cut under the Montreal protocol. Hence, we think that NFIL is treading on thin ice.
