KR Choksey's research report on Navin Fluorine International
Revenue increased by 20.4% QoQ to INR 6,020 Mn and beat our estimates. The stronger-than-expected revenue growth reflected strong utilization at the Surat plant and the addition of new molecules, while lower export realizations impacted top-line growth. EBITDA of INR 1,101 Mn increased by 45.5% QoQ, largely attributed to overall top-line growth and lower employee costs; EBITDA margins expanded by 315 bps QoQ. Adj PAT increased by 171.8% QoQ to INR 704 Mn, primarily due to strong operational performance, higher other income, and lower-thanexpected tax expense; Adj PAT margins expanded by 651 bps QoQ.
Outlook
We increase our FY26E EPS to reflect robust performance in the specialty chemicals and HPP segments. Applying an unchanged multiple of 35.0x on FY26E EPS, we arrive at an increased Target Price of INR 3,568 per share (previously: INR 3,123). We also upgrade our rating to "ACCUMULATE" from “HOLD”.
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Navin Fluorine - 15052024 - kr