Now Reading: Navin Fluorine target set at Rs 8,812 on strong growth outlook
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Navin Fluorine target set at Rs 8,812 on strong growth outlook
Brokerage has maintained an 'Accumulate' rating on Navin Fluorine International with a target price of Rs 8,812, citing strong multi-year growth prospects. The company's guidance of about 25 per cent revenue CAGR…
Brokerage has maintained an 'Accumulate' rating on Navin Fluorine International with a target price of Rs 8,812, citing strong multi-year growth prospects. The company's guidance of about 25 per cent revenue CAGR through FY30 remains on track, supported by R32 capacity expansion and continued CDMO scale-up.
R32 is expected to contribute around 20-25 per cent of revenue by FY28, with about 30-40 per cent of the expanded capacity already contracted. The $100 million CDMO revenue target for FY27 remains on track. Advanced Materials, with 19-20 fluorination-based products, is expected to contribute 10-15 per cent of revenue by FY30.
The company plans to invest about Rs 700 crore in FY27, with annual capex of Rs 700-1,000 crore over the next 2-3 years across R32, CDMO and Advanced Materials. Revenue/EBITDA/PAT are expected to register a CAGR of 22/24/29 per cent over FY26-28E.
Indian Opinion Analysis
Navin Fluorine's expansion plans come as India's specialty chemicals sector faces margin pressure from Chinese dumping. The R32 refrigerant market is tightly regulated under the Kigali Amendment, giving first movers pricing power. The company's capex of Rs 700-1,000 crore annually is significant against its current market cap of roughly Rs 40,000 crore. Key risks include execution delays and sustained low-price competition from Chinese producers. The next trigger is Q1FY27 results in July 2026, which will show whether the CDMO pipeline is converting to orders.
Source: thehindubusinessline.com
This story was synthesised by AI from the source linked above.
