Navin Fluorine Worldwide Ltd. will seemingly report robust earnings within the close to time period due to new product launches and contracts within the agrochemical and CDMO segments.
The brand new contract with Chemours Co. for producing cooling fluids for knowledge centres additionally offers an “attention-grabbing” situation for additional upside, Jefferies mentioned. These elements satisfied Jefferies to hike the goal value and earnings per share estimates for Navin Fluorine Worldwide.
CDMO stands for Contract Growth and Manufacturing Organisation.
Jefferies hiked the goal value to Rs 5,280 from Rs 4,600, implying potential upside of 15.26% from Friday’s shut. The brokerage maintained a ‘purchase’ score on the inventory.
It has projected 35% earnings per share CAGR over FY25–27. The robust earnings progress visibility justified a valuation premium in Jefferies’ view.
These views got here after Navin Fluorine Worldwide’s fourth-quarter earnings rose, and have been according to Jefferies’ estimates.
Navin Flourine This fall FY25 Outcomes Highlights (Consolidated, YoY)
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Income up 16% at Rs 713 crore versus Rs 614 crore (Bloomberg estimate: Rs 679.3 crore).
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Ebitda up 55.4% at Rs 190 crore versus Rs 122 crore (Bloomberg estimate: Rs 169.4 crore).
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Margin at 26.7% versus 20% (Bloomberg estimate: 24.9%).
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Web revenue up 35% at Rs 95 crore versus Rs 70.4 crore (Bloomberg estimate: Rs 99 crore).
Navin Fluorine Worldwide delivered income according to Jefferies’ estimates within the fourth quarter, supported by higher-than-expected income from CDMO and high-pressure processing segments. Nevertheless, the underside line was 5% beneath Jefferies’ estimates on larger depreciation from the commissioning of an agrochemical fluorospecialty plant, Jefferies mentioned.
The corporate is anticipating a industrial order within the CDMO phase from a US main within the monetary yr 2026, which may ramp up its Fermion contract as nicely. Along with this, Navin Fluorine Worldwide has obtained an order from a European buyer which can begin within the present monetary yr. Part I of cGMO4 will seemingly begin commissioning within the third quarter of the monetary yr 2026, which may also contribute to its progress within the near-term, Jefferies mentioned.
For its contract with Chemours, Navin Fluorine Worldwide will set up a plant with estimated capital expenditure of $14 million to supply hydrofluoroolefins below HFO Opteon2-phase. Chemours will contribute $5 million to the capital expenditure, Jefferies mentioned. The Opteon line is rising robust in double digits as Chemours is offering an attention-grabbing optionality for Navin Fluorine to scale sooner or later.
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