During Tuesday’s trading session, shares of a leading provider of advanced CDMO services in the fluorination segment, operating India’s only high-pressure fluorination plant that is cGMP-compliant, surged nearly 6 percent to reach a new high on the stock exchanges.
The rally came after global brokerage firm Jefferies issued a “Buy” call on the stock, setting a target price of Rs. 5,280 per share. Jefferies backed its bullish stance with expectations around the company’s capex plans, strong revenue growth potential, and other positive business drivers.
With a market cap of Rs. 23,076 crores, the shares of Navin Fluorine International Limited surged by about 6.2 percent to hit a new 52-week high at Rs. 4,792.3 on BSE, as against its previous closing price of Rs. 4,511.25. The stock has delivered positive returns of around 29 percent in one year, and has gained by over 7 percent in the last one month.
What’s the News
Jefferies has assigned a “buy” rating on Navin Fluorine International Limited, setting a target price of Rs. 5,280 per share, representing a potential upside of nearly 14 percent from current price levels of Rs. 4,647.
The global brokerage firm believes Navin Fluorine is well-placed to benefit from its substantial capital expenditure (capex) of Rs. 2,000 crore over the long term. This investment, made over the past three years, is expected to start delivering returns as the company secures long-term contracts, which could improve asset efficiency and drive earnings growth.
According to Jefferies, this monetisation strategy could lead to a strong 35 percent compound annual growth rate (CAGR) in earnings per share (EPS) between FY25 and FY27.
Additionally, the brokerage sees promise in the company’s robust pipeline, particularly in specialty chemicals, CDMO (contract development and manufacturing), and high-performance products (HPP). Many of these contracts are likely to come into play in FY26, offering clear visibility for growth through FY28.
Jefferies remains positive on Navin Fluorine’s R32 refrigerant gas business as well, noting that despite new supply entering the market, prices are expected to stay firm in the near term.
Financials & more
Navin Fluorine reported a significant growth in its revenue from operations, showing a year-on-year rise of around 16 percent from Rs. 602 crores in Q4 FY24 to Rs. 701 crores in Q4 FY25.
The company also saw a notable improvement in profitability, as net profit climbed during the same period from Rs. 70 crores to Rs. 95 crores, marking a growth of around 36 percent YoY.
Looking at a broader time frame, Navin Fluorine’s revenue has grown at a CAGR of about 17 percent between FY22 and FY25, while net profit expanded at a CAGR of around 3 percent. For FY25, earnings per share (EPS) came in at Rs. 58.2, up from Rs. 54.57 in FY24. Over the past three years, EPS has grown at a CAGR of roughly 3 percent
Navin Fluorine has one of the largest integrated fluorochemical complexes in India, and primarily focuses on fluorine chemistry – producing refrigeration gases, inorganic fluorides, specialty organofluorines, and offers Contract Research and Manufacturing Services.
It is India’s first and only manufacturer of hydrofluoroolefins (HFO) and ranks among the country’s largest producers of inorganic fluorides, anhydrous hydrofluoric acid (AHF), and diluted hydrofluoric acid (HF).
Written by Shivani Singh
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