Accumulate Navin Fluorine International; target of Rs 2463: Dolat Capital Market

Dolat Capital Market's research report on Navin Fluorine International

Navin Fluorine International Ltd (NFIL IN) reported a stellar 2QFY21 performance. Sales/EBITDA/PAT beat our estimates as Sales grew by 16.8% YoY to Rs 3.19bn (D.est: Rs 2.56bn). EBITDA/PAT grew by 33.2/43.3% YoY to Rs 907/678mn (D.est: Rs 646/462mn). Gross margins improved by 151bps YoY to 55.1% owing to change in business mix, EBITDA margins improved even higher 348bps YoY to 28.4% as operating leverage played out from c-GMP 3 plant (~80% utilization).

Outlook

We maintain the multiples in our SOTP valuation and recommend investors to accumulate the stock at CMP. We have maintained our target price to Rs 2,463/share.

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