KR Choksey has given Buy recommendation for Navin Fluorine International with a target price of Rs. 4494 in its research report issued on Oct 21, 2021

KR Choksey’s research report on Navin Fluorine International

NFIL reported topline growth of 6.27% YoY (+3.93% QoQ) at INR 3,389 Mn. For H1FY22 revenue stood at INR 6,655 Mn showing a decent growth of (+24.65% YoY). EBITDA stood at INR 842 Mn, down by 7.27% YoY (+8.79% QoQ), with OPM at 24.85% (-363bps YoY), the decline in margin was mainly due to sharp rise in the raw material/input cost’s. For H1FY22 EBITDA was up by 12.03%. PAT for the quarter was at INR 632 Mn -1.86% YoY (+12.86% QoQ), with NPM at 18.65% (-1.55 Bps YoY). For H1FY22, PAT stood at INR 1,191 Mn (+1.45% YoY), with NPM at 17.90% in H1FY22. Net Cash flow from operations ended at INR 4,190 Mn in H1FY22 against INR 12,140 Mn in H1FY21. Declared an interim dividend of INR 5 per share of nominal value INR 2/- each (250%), aggregating to INR 247 Mn for the financial year 2021-2022. Appointed Mr. Basant Kumar Bansal as the new CFO w.e.f 1 November 2021.

Outlook

We retain our BUY rating on the company and hence assign P/E multiple of 41.5x on FY24E EPS with same target price of INR 4,494/share, an upside of 33.58% to CMP.

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