Broker’s call: Navin Fluorine (Accumulate)
PL Capital
During the analyst meet of Navin Fluorine International Ltd (NFIL), industry experts have expressed confidence in the company's continued growth trajectory. The management's assurance of strong multi-year growth, driven by robust demand across businesses and multiple growth levers, remains promising. The company's initial revenue growth projection of 25 per cent CAGR through FY30 remains on track.
Additionally, Navin Fluorine's R32 capacity expansion, alongside continued CDMO scale-up, provides ample growth visibility in the near-to-medium term. By FY28, R32 is expected to contribute around 20-25 per cent of the company's revenue, with about 30-40 per cent of the expanded capacity already secured. Meanwhile, the ₹100 million target for CDMO revenue in FY27 remains attainable.
The Advanced Materials segment is emerging as a significant long-term growth opportunity, with fluorination-based products expected to contribute 10-15 per cent of revenue by FY30. To fuel these growth prospects, NFIL plans to invest approximately ₹700 crore in FY27, with annual capex forecasted to range between ₹7,00-1,000 crore over the next 2-3 years across R32, CDMO, and Advanced Materials.
Looking ahead, we anticipate revenue, EBITDA, and PAT to exhibit a CAGR of 22/24/29 per cent over FY26-28E. With these factors in mind, we maintain our 'Accumulate' rating on the stock, targeting a price of ₹8,812, which values the company at 41 times FY28E EPS.
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