Neutral Navin Fluorine International; target of Rs 3240: Motilal Oswal

About this update from Navin Fluorine International Limited

Motilal Oswal's research report on Navin Fluorine InternationalNavin Fluorine International (NFIL)’s EBITDA/ PAT in 2QFY25 came in at 6%/12% higher than our estimates due to the strong YoY performance in HPP and CDMO segments. Gross margin stood at 56.8%, while EBITDA margin contracted 10bp YoY to 20.7%. Earnings declined 3% YoY to INR588m in 2QFY25. The HPP business grew 22% YoY, led by the HFO and R32 plants running at optimum levels, an increase in R32 sales, and an improved realization of R22 gas. Capex of the new R32 plant and AHF capacity is on track and scheduled to be commissioned in line with the earlier guided timelines. Offtake from the new R32 capacity is definitive, according to the management.OutlookWe expect a revenue/EBITDA/adj. PAT CAGR of 21%/28%/31% over FY24-27. The stock is trading at ~40x FY26E EPS of INR82.1 and ~26x FY26E EV/EBITDA. We value the company at 35x Sep’26E EPS to arrive at our TP of INR3,240. We maintain our Neutral rating.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_24102024_Motilal Oswal

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