Navin Fluorine Q3 Results Review - Headwinds Galore: IDBI Capital

IDBI Capital Report

Navin Fluorine International Ltd. delivered dismal performance in the quarter. Although revenue grew by 6% sequentially, Ebitda and adjusted profit after tax declined by 23% and 40% respectively.

Deferrals of campaigns and inventory destocking by global agrochemical majors led to revenue decline of 5% YoY for the specialty chemicals segment.

Pricing pressures in R22 exports and continuation of ramping up issues at the HFO plant impacted revenue of the HPP segment.

The contract development and manufacturing organisation segment witnessed sharp revenue decline of 42% YoY owing to postponement of sales of key molecules.

Navin Fluorine's subdued demand and intense pricing pressures are major headwinds which has led us to lower our profit after tax by 41%/34%/26% for FY24/FY25/FY26.

We downgrade our rating to 'Hold' with a revised target price of Rs 3,120 lowering our target multiple from 38 times to 35 times FY26 earnings.

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