NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Nirmal Bang Report
We recently visited the Dewas plant of Navin Fluorine International Ltd. and interacted with the management to understand the demand outlook and update on expansion plans. While the worst is not behind yet due to macro factors including China competition, margin is expected to improve sequentially from the current base. Contract development manufacturing organisation business is expected to clock $100 million revenue in FY27.
The management indicated that total capex of Rs 14 billion is underway across four projects which could drive growth beyond FY26. CDMO peak revenue potential after cGMP4 commissioning is more than Rs 10 billion.
While the near-term pain points still persist, we believe recovery should be faster in Navin Fluorine vis-a-vis peers on account of very strong innovator revenue mix, speciality product positioning and the share of dedicated contracts.
The overhang related to the Managing Director's appointment is also behind us. Therefore, after rolling forward our valuation to Sep'26E, we upgrade Navin Fluorine to Buy with a revised target price of Rs 4,000 (earlier Rs 3,600) valued at 35 times PE.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
