Emkay's research report on Navin Fluorine
NFIL’s Q4 revenue was down 14% YoY at Rs6bn (+20% QoQ) owing to i) lower volumes in the HFO plant (YoY) and pricing pressure in the ref gas business; ii) deferral of sales for key molecules in the CDMO business to FY25 (vs. H2FY24). Management guided that inventory rationalization and Chinese dumping have impacted the specialty chemicals business in FY24, and expects gradual recovery from H2FY25. CDMO business has seen significant campaign deferrals in FY24, but directional guidance of USD100mn revenue remains intact.
Outlook
EBITDA stood at Rs1.1bn (down 45% YoY; +45% QoQ) and margin was at 18.3% (vs. 28.9% YoY), on reduction in gross margin and operating deleverage. We cut our FY25/26 estimate by 12%/4% to factor in the relatively subdued H1FY25E. We retain REDUCE, with unchanged TP of Rs 3,000/sh (30x Mar-26E EPS).
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