Navin Fluorine’s Rs 2,000 cr capex and Jefferies buy call: Should you buy this stock?
Navin Fluorine shares have surged 45 per cent year-to-date, hitting a 52-week high as brokerages like Jefferies and Morgan Stanley turn bullish on the stock. Strong revenue growth from Rs 365 crore in FY22 to Rs 1,443 crore in FY25 and a robust Q4 performance, with a 36 per cent jump in profit, underline the company's healthy financials and future potential.
Company overview
Navin Fluorine International Limited operates India’s only high‑pressure, cGMP‑compliant fluorination plant. The company is a leading provider of contract development and manufacturing services (CDMO) in the fluorination segment, producing refrigeration gases, specialty organofluorines and inorganic fluorides. With market cap of over Rs 23,000 crore, Navin Fluorine has established a dominant position in both domestic and global speciality‑chemicals markets.
Strong Q4 performance
Revenue up 16% YoY to Rs 701 crore; net profit rises 36% to Rs 95 crore in Q4 FY25.
Jefferies and other brokerages upgrade growth potential
- Jefferies issued a Buy rating on Navin Fluorine, setting a target price of Rs 5,280 per share.
- Jefferies’ upgrade highlights visibility on earnings and a clear line of sight towards earnings per share (EPS) compounding at 35 per cent between FY25 and FY27.
Rs 2,000cr investment payoff?
Company’s 3-year Rs 2,000 crore capex aims to unlock long-term returns through margin expansion and global contracts.
Global export footprint
Over 50% of output exported to regulated markets; products include R32 gases, HFOs and organofluorines.
Long-term growth thesis
Robust capex, expanding margins and global demand for fluorochemicals support Navin’s long-term growth outlook.
Navin Fluorine hits Rs 4,798: Shares at 52-week high after 45% YTD surge
Navin Fluorine share price touched a 52-week high of Rs 4,798 on June 18. With a 45 per cent YTD gain and strong broker backing, is more upside in store?
Long-term growth and risks
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Robust capex, expanding margins and global demand for fluorochemicals support Navin’s long-term growth outlook.
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Watch for volatility in raw material prices, regulatory shifts in refrigerants and project execution timelines.
Robust capex, expanding margins and global demand for fluorochemicals support Navin’s long-term growth outlook.
Watch for volatility in raw material prices, regulatory shifts in refrigerants and project execution timelines.
Avendus initiates coverage
- Navin Fluorine targe: Rs 4,800
- Sees RoIC rising to 18% by FY27
- New cGMP facilities to bring earnings stability, boost CDMO growth, says Avendus in bullish outlook
Should you buy?
"Traders should remain cautious at higher levels and consider booking profits or trailing stop-losses accordingly. A clear breakout above Rs 4,900 with volume would be needed to negate this bearish divergence signal," says Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers.