Navin Fluorine shares: Shares of Naveen Fluorine International rose more than 4% as the market opened on Tuesday, February 10, reaching a new record high. This rise in the stock has come after the Q3 results. At the same time, analysts have also become quite positive about the stock and have increased their target prices. Jefferies, Nuwama and UBS have ‘buy’ ratings on the stock, while Citi has advised ‘sell’. All analysts have increased their target prices.
Jefferies has given ‘Buy’ rating on the stock and raised its price target to ₹7,800 per share. According to the brokerage, the company had a good third quarter with EBITDA and PAT 16% and 14% higher than Jefferies estimates, respectively. This happened because of specialty chemicals. Strong contracts in CDMO, growth in data center cooling products and R32 capacity provide hope for strong earnings growth in FY27-28. Its net debt to equity was 0.03x.
Jefferies has raised its earnings per share (EPS) estimates for FY27 and FY28 to 9% and 7%, respectively, and estimates a 23% EPS compound annual growth rate (CAGR) during this period.
Nuvama has ‘Buy’ rating on Naveen Fluorine and has a target price of ₹7,653 per share. Nuvama said the excellent quarter was supported by growth in all three segments, with Specialty Chemicals exceeding expectations in the challenging agrochemical industry. Since the third quarter beat all headline expectations, Nuvama’s FY26, FY27 and FY28 estimates need to be upgraded by 15%, 11% and 11%, respectively, due to expectations of sustainable EBITDA margins of 30% or higher. It said growth opportunities remain strong across all segments, while backward integration from AHF will drive margin expansion and emerging sectors will provide long-term opportunities.
The analyst has given ‘Buy’ rating on the stock with a target price of ₹7,800 per share. UBS said Naveen Fluorine had strong growth and improved margins in the third quarter. Its outlook is good. All segments performed well, with specialty chemicals outperforming expectations.
Increasing capacity will support medium to long term growth. The company’s management indicated stable annual EBITDA margins of around 30%, supported by high utilization of existing facilities. Fourth quarter momentum is expected to be strong, benefiting from seasonal trends. It said FY26 margins are likely to exceed the guided 30% level.
Citi has given ‘Sell’ rating on Naveen Fluorine, with a target price of ₹5,500 per share. Citi believes that the year-over-year increase in Naveen Fluorine’s EBITDA margin was driven by a combination of higher gross margins and operating leverage. The company has started many projects like R31, HFO, Ag-chem in the last three years, whose gross block has increased by more than 4 times as compared to FY22. The city said some of these capacities have been increased and restrictions are expected to increase over the next few days.
Additionally, Naveen Fluorine is up 57% in one year at 29x its EV/EBITDA, which appears to account for most of this gain.
Of the 29 analysts covering the stock, 21 have given a ‘Buy’ rating, 3 have given a ‘Hold’ rating and 5 have given a ‘Sell’ rating.
How were the quarterly results?
The company’s third quarter profit after tax (PAT) increased by 122% to ₹185 crore from ₹84 crore last year. Its revenue grew 47% to ₹892 crore from ₹606 crore in the third quarter of last fiscal. The company’s earnings before interest, tax, depreciation and amortization (EBITDA) increased 109% to ₹308 crore from ₹147 crore, while its operating margin expanded to 34.5% from 24.3% in the same period last year.
The specialty chemicals segment grew 60% to ₹354 crore, the high performance products (HPP) segment grew 35% to ₹412 crore and the contract development and manufacturing organization (CDMO) segment grew 61% to ₹127 crore.
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