NAVIN FLUORINE INTERNATIONAL LTD

Navin Fluorine International Ltd is primary engaged in producing refrigeration gases, inorganic fluorides, specialty organo fluorines and offers contract research and manufacturing services. Its portfolio includes 50+ fluorinated compounds developed over the years.

Revenue Break-Up

Specialty Chemicals : 41%

HPP – 46%

CDMO – 13%

Shareholding Pattern

–PUBLIC GROUP

-PROMOTER GROUP

Financial Summary

Synopsis of Financials

• Revenue Growth: Recorded a 7% year-on-year topline growth, totaling approximately ₹524 crores.
• Operating EBITDA: Approximately ₹100 crores, reflecting a drop of 12% year-on-year due to exceptional ref gas pricing in Q1 FY24 and lower specialty sales.
• Profit After Tax: Stood at ₹51.2 crores, down 17% from ₹61.5 crores in Q1 FY24, impacted by higher depreciation costs from new CAPEX.
• Operating Cash Flow: Generated ₹107 crores, aided by efforts to drive down working capital.
• Net Debt to Equity Ratio: Improved to 0.38x, indicating a strong balance sheet.

Final Outlook

Company’s Strong financial standing and steady growth are favorable indicators in the chemical industry, as are revenue growth, profitability, and debt levels of the organization shows a dominant position in the market and benefits over competitors. In the chemical industry, robust and steady growth in terms of revenue, profitability, and debt levels are all signs of a company’s financial health.

• Company has a healthy Interest coverage ratio of 59.97.
• The Company has been maintaining an effective average operating margins of 24.15% in the last 5 years.
• The company has an efficient Cash Conversion Cycle of 60.59 days.
• Company has a healthy liquidity position with current ratio of 2.87.

I will Give Buy Recommendation for this stock