ICICI Direct has given Hold recommendation for Navin Fluorine with a target price of Rs. 4570 in its research report issued on Oct 20, 2022
ICICI Direct’s research report on Navin Fluorine
Navin Fluorine (NFIL) operates one of the largest integrated fluorochemicals complexes in India with a presence in speciality chemicals, CDMO, inorganic fluoride and refrigerant segments. The company has two manufacturing facilities in Surat and Dewas while it is setting up a new greenfield capacity in Dahej • In terms of revenue contribution, speciality chemicals constitute 40% of overall revenues followed by CDMO 25% and the rest from refrigerants (~18%) and inorganic fluoride (~17%) businesses.
We maintain HOLD as the current price reflects better growth outlook from speciality chemicals, HPP and recovery in CDMO, thus giving limited upside. We value Navin Fluorine at 50x FY24E EPS of Rs 91.4 to arrive at a target price of Rs 4570/share (earlier Rs 4450/share).