Buy Navin Fluorine International., target price Rs 5090: JM Financial

JM Financial has buy call on Navin Fluorine International with a target price of Rs 5090. The current market price of Navin Fluorine International is Rs 4299.15.

Navin Fluorine International, incorporated in the year 1998, is a Mid Cap company (having a market cap of Rs 21293.44 Crore) operating in Chemicals sector.

Navin Fluorine International key Products/Revenue Segments include Chemicals, Sale of services, Scrap and Export Incentives for the year ending 31-Mar-2022.

Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 430.10 Crore, up 5.31 % from last quarter Total Income of Rs 408.43 Crore and up 23.09 % from last year same quarter Total Income of Rs 349.43 Crore. Company has reported net profit after tax of Rs 57.81 Crore in latest quarter.

The company’s top management includes Mr.Vishad P Mafatlal, Mr.Sujal A Shah, Mr.Ashok U Sinha, Mr.Atul K Srivastava, Mrs.Radhika V Haribhakti, Mr.Harish H Engineer, Mr.Sudhir G Mankad, Mr.Sunil S Lalbhai, Mr.Pradip N Kapadia, Ms.Mohan M Nambiar, Mr.Radhesh R Welling, Mr.Apurva S Purohit. Company has Price Waterhouse Chartered Accountants LLP as its auditors. As on 30-09-2022, the company has a total of 5 Crore shares outstanding.

Investment Rationale
The correction in the counter provides an opportunity to BUY the stock, as we believe that the market is overlooking 1) strong earnings growth of ~39% over FY22-25E, 2) potential of Navin Fluorine winning an additional contract from Honeywell for HFOs, 3) possibility of scale-up o fits molecules under its CDMO business, and 4) new product additions in its specialty chemicals business.

Promoter/FII Holdings
Promoters held 29.4 per cent stake in the company as of 30-Sep-2022, while FIIs owned 23.35 per cent, DIIs 20.45 per cent.