Buy Navin Fluorine International; target of Rs 4007: Prabhudas Lilladher

About this update from Navin Fluorine International Limited

Prabhudas Lilladher's research report on Navin Fluorine InternationalNavin Fluorine International (NFIL) reported better performance on YoY basis, led by HPP & specialty chemicals business. CDMO dragged performance for the quarter, however it is expected to improve sequentially going ahead. We believe, HPP and Specialty Chemicals segments will drive robust growth (at 28-30% CAGR over FY23-26), with increasing use of fluorine in the Pharma and Agro space, battery chemicals and performance materials. The stock is trading at 30x FY26E EPS of Rs 133.6, with an expected improvement in RoE to ~20%, despite a huge capex (Rs8bn) over the next two years.OutlookWe value the company at 30x FY26E EPS (earlier Target P/E at 40x) to arrive at our TP of Rs 4007 (earlier Rs 5064). We upgrade our rating from ‘Accumulate’ to ‘Buy’ as we believe stock has corrected in the near term.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 - 04 - 10-2023 - prabhu

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