Navin Fluorine International Ltd. share price target

Company Outlook & Guidance: We maintain a positive outlook on the stock (Unchanged from the earlier stance).The company has indicated strong execution and its ability to attract business in CDMO vertical outside core chemistries.

Navin Fluorine International’s (NFIL) Q1FY24 net profit dipped 17.5% YoY to INR 615mn despite revenue growth of 24% YoY and lower depreciation charges of INR 150mn. Honeywell supply plant had two months of lost sales due to shutdown and volatility in demand forecast; one molecule for agrochemicals had nil sales due to destocking.

Shutdown of the HFO facility affects growth in the HPP segment

Recommendation With a 10% upside from the CMP, we maintain our BUY rating on the stock.

Navin Fluorine International’s (NFIL) Q4FY23 revenues / EBITDA benefited from ramp- up in three projects – HPP, dedicated agro-intermediate and MPP-2 plants. However, non-contract business was either flattish (HPP) or dipped (specialty chemicals) YoY on rise in captive consumption.