Navin Fluorine International Ltd. share price target

Navin Fluorine International Ltd. announced the opening of its Qualified
Institutions Placement (QIP) on July 7, 2025, to raise up to INR 7,500 Mn.
The Board approved the preliminary placement document and set the floor
price at INR 4,798.28 per share, based on SEBI’s pricing formula.

Leaders in Fluorine

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

Strong recovery in Q3; healthy growth to sustain in FY26.

We upgrade the stock to HOLD from SELL rating as we roll over the estimates to FY27 which factors in the expected growth from ongoing expansion initiatives.

Navin Fluorine International (NFIL)’s EBITDA/ PAT in 2QFY25 came in at 6%/12%
higher than our estimates due to the strong YoY performance in HPP and CDMO
segments.

We visited Navin Fluorine’s plant based in Dewas, Madhya Pradesh which caters to its CDMO business vertical. The company manufacture pharma intermediates for commercialized (50-60%) and last-stage molecules.

We downgrade to SELL from HOLD rating on the stock to factor in the near-term headwinds and recent surge in stock price.

NFIL’s Q1 revenue was up 14% YoY at Rs5.2bn (-13% QoQ), owing to volume recovery in the HFO plant (YoY) and higher volumes/pricing-in the ref gas business.

NFIL’s Q4 revenue was down 14% YoY at Rs6bn (+20% QoQ) owing to i) lower
volumes in the HFO plant (YoY) and pricing pressure in the ref gas business; ii)
deferral of sales for key molecules in the CDMO business to FY25 (vs. H2FY24).

Navin Fluorine’s (NFIL) EBITDA/PAT grew 13%/42% YoY in 4QFY24, higher than
our estimates. The beat was driven by a strong performance in the Specialty
Chemicals business, which was well supported by growth in the HPP segment.
Gross margin was 50%, while EBITDA margin dipped 10.7pp YoY to 18.3%.

We maintain our hold rating on the stock to factor in the difficult macros and continued uncertainty across the leadership position.

We recommend a BUY on the stock for a target price of Rs 3,430/share, implying an upside of 11% from CMP.

Recommendation With a 3.7% upside from the CMP, we revise our rating on the stock from BUY to HOLD to factor in the difficult macros and continued uncertainty across the leadership position.