View 21 reports from 6 analysts offering long term price targets
for Navin Fluorine International Ltd..
Navin Fluorine International Ltd. has an average target of 4396.17. The consensus estimate
represents a downside of -0.31%
from the last price of 4410.05.
- This broker has downgraded this stock from it's previous report. (eg. - Buy->Hold)
- Broker has maintained previous recommendation but reduced share price target.
- This broker has upgraded this stock from it's previous report.(eg. - Sell->Hold)
- Broker has maintained previous recommendation but increased share price target.
Supreme Industries: We maintain BUY on Supreme Industries (SIL), keeping the TP unchanged at INR 2,630/share (SOTP-based). SIL EBITDA/APAT came in line with our estimates. Total plastic product volumes fell 15% QoQ to 109K MT on seasonally weak demand. Falling resin prices led to dealers destocking, impacting sales. Blended NSR rose 2/8% QoQ/YoY to INR 203/kg. However, blended unitary EBITDA fell 18/21% QoQ/YoY on inventory losses (amid falling resin prices) and low utilisation (QoQ). In FY23, it expects to deliver 15% overall volume growth with 15% operating margin. SIL expects recent cool-off in resin prices (which is getting passed on) to boost demand and lead to inventory loss in Q2FY23. Navin Fluorine International: We retain our BUY rating on NFIL, with a target price of INR 4,900 on the back of (1) earnings visibility, given long-term contracts; (2) tilt in sales mix towards high-margin high-value business; (3) capacity expansion led growth; and (4) strong R&D infrastructure. EBITDA/APAT were 11/3% below our estimates, owing to a 15% fall in revenue, offset by lower-than-expected raw material cost, lower-than-expected depreciation and higher-than-expected other income. Sonata Software: We maintain our BUY rating on Sonata, following an in-line growth in the IT services segment (IITS, +3.9% QoQ CC) and better-than-expected margin performance. The sell to Microsoft portfolio (ISV, +4.5% QoQ) is driving growth while the sell with Microsoft (Dynamics) was soft. The company remains optimistic about the Microsoft opportunity (product Engg + dynamics 365) and is confident of delivering ~15-20% YoY growth. The impacted travel vertical is set to recover with...
Navin Fluorine International’s (NFIL) Q1FY23 revenues missed our estimate by 6%, while higher EBITDA margin (up 190pbs) on better product mix in HPP and specialty helped EBITDA to be in-line. Company is now close to reaping the benefits of long-term contracts it signed, which will start reflecting in P&L from the next quarter.
Navin Fluorine International: We retain our BUY rating on NFIL, with a target price of INR 4,640 on the back of (1) earnings visibility, given long-term contracts; (2) tilt in sales mix towards high-margin high-value business, (3) capacity expansion led growth, and (4) strong R&D infrastructure. EBITDA was 5% below our estimate, owing to higher-than-expected raw material cost and other expenses, offset by lower-than-expected employee cost. APAT was 8% above our estimate, owing to higher-than-expected other income and lower-than-expected tax outgo. Voltas: Voltas Q4 performance was quite unique; in a strong onset of summer, the market leader lost market share in room air conditioner (RAC) category. The industry is witnessing robust demand after the slump of the last two summer seasons, while many markets and brands are witnessing a stock-out situation. Voltas lost market share (>200bps on YTD to 23.4%), primarily in south market (typically contributes ~20% but higher contribution for Q4). Voltas lost market share to LG and Samsung due to lower price gap and to Lloyd due to aggressive pricing. We believe the road is not an easy one for company in regaining its full share, although some recoup is expected owing to corrective price action and strong demand in the core market. Despite this blip in Q4 performance, we are confident on the company's execution capabilities (demonstrated in the past several years) while we will keep monitoring the market share status in the remaining season. Voltas is expected to sacrifice margin over growth; hence, we cut our EPS estimate by 4% for FY23/FY24....
Navin Fluorine International’s (NFIL) Q4FY22 EBITDA was below our estimate due to lower revenues in specialty chemicals and CRAMS. Company won another large contract for a fluoro-molecule, with peak revenues of Rs6bn. The molecule offers opportunity in downstream products as well.
Given the fair visibility in earning in coming years and ability to manage costs, we maintain our recommendation of BUY with revised TP of Rs 4,153/share
In terms of revenue contribution, speciality chemical constitutes 40% of overall revenue followed by CRAMS of 25% and the rest from refrigerant (~18%) and inorganic fluoride (~17%) businesses Q3FY22 Results: Numbers were above our estimates across all parameters, led by strong growth from speciality chemical, inorganic fluoride and refrigerants. Gross margins were up 170 bps YoY to 55.6% while EBITDA margin was up 40 bps YoY to 26%, due to higher operating cost such as employee (up 30%...
NFIL reported a revenue/EBITDA that was 9%/8% higher than our estimate. Gross margin was in line at 56%, while EBITDA margin grew 90bp QoQ to 26.7%. Growth in 3QFY22 was driven by strong growth in the legacy business Refrigerant Gas and the Inorganic Fluorides (up 31%/28% QoQ) and was led by increased realization and improved pricing on the back of strong demand in the domestic market. The management is confident of maintaining its quarterly run-rate of USD10m in the CRAMS segment in 4QFY22. Specialty Chemicals growth was led by partnerships with large international customers....
Fluorine is the second smallest element after hydrogen. Selecting small organic molecules to act as a ligand to target biomolecules (enzymes, proteins, DNA) on the surface or inside cells is crucial for bioactive reagents. These ligands generally interact with biomolecules to form complexes, controlling the biological processes in insects, plants, and bacteria. Addition of fluorine atoms to active compounds can improve their binding by altering hydrogen-bonding and ionic interactions, and lipophilicity. A highly lipophilic compound is crucial, particularly in the case of insecticides, for the...
Pharmaceutical drugs can be oxidized by liver enzymes or other substances, thereby decreasing the bioavailability of the drugs. However, the introduction of a fluorine atom makes the drug resistant to metabolic degradation. This increases the bioavailability of the drug at the site of required action. A classic...
Furthermore, factoring in the sharp correction in prices and a fair earnings visibility, we upgrade the stock to BUY (earlier HOLD) with an unchanged TP of Rs 3,930/share
Navin Fluorine International’s (NFIL) Q2FY22 EBITDA dip of 10.6% YoY shows it was walking a tight rope on revenue growth with limited capacity in specialty chemicals, and volatile CRAMS revenue. NFIL is also catching up with peers and is accelerating investment in capabilities by adding a technology team and expanding R&D. Company is in a sweet spot to monetise fluorination opportunities, but the evolution would be gradual compared to impatient market expectations.
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