Navin Fluorine shares hit record high after stellar Q3 — Analysts largely positive, see up to 18% upside

About this update from Navin Fluorine International Limited

Shares of Navin Fluorine International Ltd. hit a fresh record high on Tuesday, February 10, as analysts were largely positive on the stock as they raised their target prices, indicating an upside potential of up to 18%, post its third quarter earnings. The company's third quarter profit after tax (PAT) increased 122% to ₹185 crore from ₹84 crore in the previous year. Its revenue increased 47% to ₹892 crore from ₹606 crore in the third quarter of the previous fiscal. The company's earnings before interest, tax, depreciation and amortisation (EBITDA) increased 109% to ₹308 crore from ₹147 crore, while its operating margin expanded to 34.5% from 24.3% in the year-ago period. The specialty chemicals segment was up 60% at ₹354 crore, high performance products (HPP) segment was up 35% at ₹412 crore and the contract development and manufacturing organisation (CDMO) segment increased 61% to ₹127 crore. While Jefferies, Nuvama and UBS have 'buy' ratings on the stock, Citi has a 'sell' recommendation. All analysts have raised their target prices.Jefferies Jefferies has a 'buy' rating on the stock and has raised its price target to ₹7,800 per share. It said the company's third quarter was a strong beat with EBITDA and PAT 16% and 14% ahead of Jefferies' estimates, respectively. The same was driven by specialty chemicals. It said firm contract in CDMO, ramp-up of data centre cooling product and R32 capacity, provide visibility on strong earnings growth over FY27-28. Its net debt to equity was at 0.03x. Jefferies has upgraded its earnings per share (EPS) estimates for FY27 and FY28 to 9% and 7%, respectively, projecting a 23% EPS compound annual growth rate (CAGR) over the period.Nuvama Nuvama has a 'buy' rating on Navin Fluorine with a target price of ₹7,653 per share. It said the stellar quarter was backed by growth in all three segments, with specialty chemicals surpassing expectations in a challenging agrochemical industry. As the third quarter beat all headline expectations, Nuvama's FY26, FY27 and FY28 estimates warrant an upgrade by 15%, 11% and 11%, respectively, given sustainable EBITDA margin expectations of 30% or more, the analyst said. It added that growth levers remain solid across segments, while backward integration from AHF should be margin accretive with a solid long-term optionality from sunrise sectors.UBS The analyst has a 'buy' rating on the sto...

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