Accumulate Navin Fluorine International; target of Rs 3769: KR Choksey

About this update from Navin Fluorine International Limited

KR Choksey's research report on Navin Fluorine InternationalNavin Fluorine International Ltd. (NFIL) Q2FY25 earnings exceeded projections while revenue missed our estimates. Revenue increased to INR 5,186 Mn by 9.9% YoY (-1.0% QoQ), missing our estimates by 4.4%. EBITDA stood at INR 1,074 Mn, up 9.2% YoY (+7.0% QoQ), missing our expectations by 3.5%. EBITDA margin came in at 20.7%, down 14bps YoY (+154bps QoQ). The QoQ improvement in margin was attributable to improved gross margin by (+80bps) and a reduction in other expenses (+64bps). PAT came in at INR 588 Mn, down 2.9% YoY (+14.9% QoQ) and exceeded our expectations. PAT margin stood at 11.3% down 150bps YoY (+157bps QoQ). We project FY26E EPS of INR 89.7 and assign a P/E multiple of 42.0x, reflecting our confidence in the company’s ability to enhance margins, capitalize on increased capacity, and robust sales from the HPP segment.OutlookAdditionally, stable Hydrofluoroolefins (HFO) operations, maximized capacity utilization, and improved productivity further support our outlook Accordingly, we arrive at a TP of INR 3,769 and retain our “ACCUMULATE” rating on the shares of NFIL.For all recommendations report, click hereDisclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.Navin Fluorine International - 25102024 - kr

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