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Neutral Navin Fluorine; target of Rs 4324: Motilal Oswal

Motilal Oswal recommended Neutral rating on Navin Fluorine with a target price of Rs 4324 in its research report dated July 25, 2022.

July 27, 2022 / 05:07 PM IST
 
 
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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

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Navin Fluorine - 260722 - moti

Broker Research
first published: Jul 27, 2022 05:07 pm

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