Motilal Oswal's research report on Navin Fluorine
NFIL reported an EBITDA/PAT that was 15%/8% lower than our estimate. Gross margin stood in line at 55%, while EBITDA margin expanded by 200bp QoQ to 26%. Growth in 1QFY23 was led by strong growth in the High Performance Products (HPP)/Specialty Chemicals businesses (up 33%/32% YoY), driven by higher volumes, greater pricing power, and strong partnerships, which resulted in repeat orders from customers. The company implemented a new organizational structure with three separate business units led by three operating CEOs. It has appointed Mr. Partha Roy Chowdhury as CEO of the HPP business vertical. Trial supplies to Honeywell have commenced, with commercial supplies to start shortly.
Outlook
We expect a revenue/EBITDA/PAT CAGR of 37%/43%/42% over FY22-24, and value the company at 40x FY24 EPS to arrive at our TP of INR4,324. We maintain our Neutral rating owing to the limited upside in the stock.
For all recommendations report, click here
Disclaimer: 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.
Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!