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Navin Fluorine on a revenue high: Reasons why the chemical company is stock pick of the week

Navin Fluorine on a revenue high: Reasons why the chemical company is stock pick of the week
Navin Fluorine on a revenue high: Reasons why the chemical company is stock pick of the week
Revenue share from high margin segments should also result in better valuation multiples.

Synopsis

Though Navin Fluorine has jumped in the recent past, analysts see continued opportunity as the fall in contribution from low margin segments and higher contribution from high margin segments, is expected to continue in the coming years as well.

Navin Fluorine International, one of the leading speciality chemical manufacturers in India, has surprised the street with y-o-y revenue and net profit growths of 18% and 30% respectively in the third quarter of 2020-21. Though total revenue was in line with the market expectations, what surprised the market was the change in its components. Its revenues from high margin segments like speciality chemicals were up 26% y-o-y and Contract Research
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