Navin Fluorine International: Prabhudas Lilladher Maintains 'Accumulate' Rating, Targets Rs 7489

Navin Fluorine International Remains Well Positioned for Strong Multi-Year Growth

Navin Fluorine International Ltd (NFIL) continues to maintain a strong position for a multi-year growth trajectory across all three segments, according to the company's latest analyst meet. Based on interactions with the management, NFIL remains on track to meet its growth expectations, with several key initiatives driving the company's progress.

The company's R32 equivalent capacity is expected to commence operations in Q3FY27, with demand for the product remaining robust and limited downside risk to prices in the near term. The production of R32, a key component in the refrigeration industry, is expected to be a significant contributor to NFIL's growth. Additionally, the company's AHF capacity plays a critical role in strengthening downstream integration, positioning NFIL for long-term success.

The Chemours partnership, a key initiative for NFIL, is now expected to commence by Jul-Aug'26, a slight delay compared to the earlier guidance of Q1FY27. The partnership involves an initial investment of USD14mn and is expected to drive growth for the company. NFIL has been producing pilot-scale samples over the past year, with Phase 2 capex potentially scaling up by nearly 10x as demand for liquid cooling fluids gains traction.

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Key Growth Driver: Darolutamide

Management also highlighted that demand for darolutamide, for which NFIL supplies a key intermediate, is expected to continue rising and will remain an important growth driver for the company. This growth driver is expected to contribute significantly to NFIL's revenue, EBITDA, and PAT growth over the next three years.

Forecast and Recommendation

We expect revenue, EBITDA, and PAT to register a CAGR of 18%, 18%, and 22% over FY26–28E, respectively. Based on this growth outlook, we maintain our 'Accumulate' rating on the stock with a target price of Rs7,489, valuing it at 39x FY28E EPS.

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