Investing in the stock market is one of the most sought-after ways to compound investments over a long period of time. Investors go through the financials of companies and their business prospects and intend to remain invested in stocks for a long period of time. Years later, these investments grow to give multibagger returns.
The shares of Navin Fluorine were available at ₹ 31.00 levels ten years ago and they closed at ₹ 4,720.00 apiece on Friday on the National Stock Exchange (NSE). This indicates that its share price has increased by a whopping 15125 percent per cent to give multibagger returns to its shareholders. Therefore, if an investor would have invested ₹ 1 lakh in the company’s shares ten years ago, the value of their holdings would have been ₹ 1.52 crores today!
Navin Fluorine is primarily engaged in the production of refrigeration gases, inorganic fluorides and speciality organofluorines. Moreover, it offers contract research and manufacturing services.
With a market capitalization of ₹ 23,237 crores, Navin Fluorine is a mid-cap company. It has a return on equity of 15.13 percent and an ideal debt-to-equity ratio of 0.31. Its shares were trading at a price-to-earnings ratio (P/E) of 74.03, which is significantly higher than the industry P/E of 15.86, therefore the stock might be overvalued. This could mean that investors are willing to pay a higher price for the company’s future earnings.
Navin Fluorine’s promoters hold a 28.81 percent stake in it. Retail investors hold 32.32 percent, foreign institutions hold 19.58 percent, mutual funds hold 19.28 percent and 0.01 percent is held by other domestic institutions.
Written by Simran Bafna
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