Synopsis:
The specialty chemicals player shows strong growth momentum with robust financials, diversified global presence, and a healthy project pipeline. Supported by strategic capex, new molecule launches, firm demand, and strong brokerage outlook, it remains well-positioned for sustainable expansion, margin improvement, and long-term value creation.
India’s specialty chemicals sector is valued at about $64 billion in 2025, growing rapidly at a 11–12% CAGR, fueled by rising domestic demand, exports, and government policies. Major segments include agrochemicals, personal care, pharmaceuticals, and construction, with leading firms investing in innovation and sustainability.
With a market capitalization of Rs 24,034.05 crore, the shares of Navin Fluorine International Ltd were trading at Rs 4,691.80 per share, increasing around 0.48 percent as compared to the previous closing price of Rs 4,669.55 apiece.
Brokerage Recommendations
Jefferies, one of the well-known brokerages globally, gave a ‘Buy’ rating on the chemicals stock with a target price of Rs 6,025 apiece, indicating a potential upside of 29 percent from the previous closing price of Rs 4,669.55 per share.
As per brokerage, the company’s growth outlook remains strong with the launch of 3 new specialty chemical molecules and 1 CDMO molecule in 2QFY26. Firm R32 refgas prices, backed by strong US demand and limited Chinese exports, support margins. A new data center cooling contract with Samsung adds growth visibility. Despite a 10% stock correction, valuations remain attractive with 36% EPS CAGR projected over FY25-28.
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Financial & Operational Highlights
The company delivered strong financial growth, with revenue rising 38% to ₹725 crore in Q1FY26 from ₹524 crore in Q1FY25. Net profit surged 129% to ₹117 crore, reflecting robust demand, improved operational efficiency, and strengthened margins, showcasing solid execution and a positive earnings momentum.
The company operates a resilient business model with presence across 3 geographies and 4 countries, supported by 4 factories, 3 R&D centers, and 5 sales offices. Serving over 900 customers with nearly 1,500 employees, it offers diversified solutions in specialty chemicals, high-performance products, and contract research, leveraging strong expertise and advanced technologies for global growth.
The company’s pipeline reflects strong growth visibility with R32 expansion tied to customer agreements, while the Chemours Opteon project targets commercial production in Q1FY27. The Nectar Project will achieve full capacity utilization in FY26 and ramp up by FY27.
The company has revised its capex outlook to ₹700–1,000 crore post-QIP, up from earlier guidance of ₹500–600 crore. Investments will remain flexible, not tied to specific verticals, but guided by strategic priorities, project economics, and long-term value creation, ensuring disciplined capital allocation for sustainable growth.
Navin Fluorine International Limited is an India-based company that is primarily focused on fluorine chemistry, which produces refrigeration gases, inorganic fluorides, and specialty organofluorines. The Company operates through the Chemical Business segment.
Written by Abhishek Singh
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