KR Choksey has given Accumulate recommendation for Navin Fluorine International with a target price of Rs. 4725 in its research report issued on Oct 21, 2022
KR Choksey’s research report on Navin Fluorine International
In Q2FY23, NFL reported sales growth of 23.69% YoY and growth of 5.45% QoQ at INR 4,192 Mn. Performance was driven by specialty chemical and HPP segment. EBITDA was up by 11.55% YoY but down 5.43% on QoQ basis to INR 938 Mn. OPM came at 22.38% which corrected by 244bps YoY and 257bps QoQ. Input costs remained a concern which was offset by price hikes. Reported PAT has seen a de-growth of 8.54% on YoY and fall of 22.31% on QoQ basis to INR 578 Mn. PAT margins during the quarter came at 13.79%. EPS in Q2FY23 came at 11.67 against 12.77 in same period last year. The Board has declared an Interim Dividend of INR 5 per equity share.
We maintain our recommendation to “ACCUMULATE” on the company applying P/E of 47x on FY24E EPS with revised price of INR 4,725/share, an upside of 6.40% to CMP.