Navin Fluorine reported topline growth of 19% YoY to Rs. 309 crore against our estimate of Rs. 305 crore. The growth was largely led by the CRAMS, speciality chemical segments, which were up 51% YoY, 26% YoY to Rs. 71 crore, Rs. 122 crore, respectively. Revenue from inorganic fluoride remained higher by 12% YoY to Rs. 57 crore while the same from refrigerant was down 18% YoY to Rs. 47 crore. Despite the value added segments, revenue remained higher compared to legacy business. Gross margins for the quarter fell 342 bps YoY to 53.9%, leading to lower than expected EBITDA for the quarter. EBITDA grew 23% YoY to Rs. 80.5 crore vs. our expectation of Rs. 90.5 crore. OPM for the quarter remained at 26% (up 90 bps YoY). PAT was up 30% YoY to Rs. 58.9 crore against our estimate of Rs. 66.8 crore.
Valuation & Outlook
We have curtailed our OPM estimates largely on account of lower than anticipated gross margins. We value the company at 37x PER of FY23E (1.3x PEG). We arrive at a target price of Rs. 2820 (vs. Rs. 3040 earlier). We have a HOLD recommendation on the stock.
For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_NavinFluorine_Q3FY21.pdf
Shares of Navin Fluorine International Limited was last trading in BSE at Rs.2480.3 as compared to the previous close of Rs. 2568.4. The total number of shares traded during the day was 11493 in over 2233 trades.
The stock hit an intraday high of Rs. 2589.95 and intraday low of 2460.55. The net turnover during the day was Rs. 28896927.