Prabhudas Lilladher Initiates Coverage on Navin Fluorine International with a Price Target of Rs 7038

Navin Fluorine International Ltd (NFIL) Research Report

Overview

We attended the analyst meet for Navin Fluorine International Ltd (NFIL) and found the company well positioned for a strong multi-year growth trajectory. This growth is driven by a robust CDMO (Contract Development and Manufacturing Organization) pipeline, expansion of key refrigerant gas capacities, and sustained momentum in the agchem (agrochemicals) segment.

Key Growth Drivers

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The partnership with Chemours, with an initial investment of USD 14mn, offers significant potential. Phase 2 capital expenditure may scale up to ~10x as demand for liquid cooling fluids gains traction. Additionally, high-grade HF (Hydrogen Fluoride) and the upcoming R32-equivalent plant are expected to enhance performance from FY28. This growth is further supported by expanded AHF (Anhydrous Hydrogen Fluoride) capacity of ~60,000mtpa, which will support both external sales and value-added downstream integration.

Outlook and Valuation

We expect revenue, EBITDA, and PAT (Profit After Tax) to clock a compound annual growth rate (CAGR) of 18%, 17%, and 15% over FY26–28E, respectively. Based on this growth outlook, we maintain our 'Accumulate' rating on the stock with a target price of Rs 7038, valuing it at 41x Dec'27E EPS.