Navin Fluorine shares surged 14% in Thursday’s intraday trade, August 6, to hit a fresh all-time high of ₹8,648 apiece, after the company’s better-than-expected June quarter performance prompted domestic brokerages to raise their target prices while reiterating bullish views on the stock.
Brokerages lift target price
Axis Securities raised its target price on Navin Fluorine to ₹8,600 from ₹8,000 per share while maintaining its ‘Buy’ rating.
The brokerage said NFIL maintains a highly optimistic outlook for sustainable growth across its business segments, supported by a robust pipeline of opportunities and the upcoming commissioning of major capacity expansions, including the new HFC capacity, the MPP de-bottlenecking, and the Chemours liquid cooling project.
It further noted that management has guided for a sustainable operating EBITDA margin of 30% to 33% (±1%) over the next one to two years, driven by the strong operating leverage expected from these new assets.
JM Financial also raised its target price on the stock to ₹9,000 from ₹8,200, while reiterating its ‘Buy’ rating.
The brokerage said it expects the company’s growth momentum to sustain over the next few years, driven by the ramp-up of the additional 15,000 MTPA R-32 capacity and the AHF facility, expansion of the existing CDMO contract with a European major through the ₹125-crore cGMP-4 Phase II facility, a robust CDMO pipeline comprising one additional molecule with the existing customer and three molecules in the FDA stage, and commercialisation of the Chemours project.
JM Financial added that it has raised its FY27 and FY28 EPS estimates by 13% and 5%, respectively, to factor in the strong Q1FY27 performance, while also introducing FY29 estimates.
Navin Fluorine Q1 Results
It posted a consolidated net profit of ₹243.31 crore for the June quarter, registering a 108% year-over-year (YoY) jump from ₹117.16 crore in the corresponding quarter last year.
On a sequential basis, profit increased 14.4% from ₹213 crore reported in the March quarter.
Its revenue from operations during the reported quarter rose to ₹1,045 crore, up 44.1% YoY from ₹725.40 crore and 11.5% quarter-on-quarter (QoQ) from ₹937.71 crore, driven by healthy business momentum.
The company’s Contract Development and Manufacturing Organisation (CDMO) business continued to be the key growth driver during the quarter, with revenue surging 82% year-on-year to ₹180 crore.
Meanwhile, the revenue from the High-Performance Products (HPP) segment rose 33% YoY to ₹540 crore, driven by higher volumes and better realisations.
The Speciality Chemicals segment reported a 48% YoY increase in revenue to ₹325 crore, supported by strong order visibility and continued scale-up of existing molecules.
At the operating level, the company reported EBITDA at ₹357 crore, marking a sharp 72% YoY increase from ₹207 crore and an 11.21% QoQ rise from ₹321 crore. The margins have expanded by 566 basis points YoY to 34.2% but remained flat on a sequential basis.
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