Q4FY21 Result Update - Navin Fluorine - ICICI Direct

Navin Fluorine reported topline growth of 22% YoY to Rs. 336 crore against our expectations of Rs. 319 crore largely led by CRAMS and speciality chemical segments. Revenue from CRAMS was up 41% YoY to Rs. 76 crore, while the same from speciality chemical was up 26% YoY to Rs. 131 crore. The revenue from refrigerant & inorganic fluoride increased 4% YoY, 16% YoY to Rs. 58 crore & Rs. 59 crore, respectively. Gross margins for the quarter declined 230 bps YoY to 52.2%, leading to lower than anticipated EBITDA for the quarter. EBITDA grew 23% YoY to Rs. 84.2 crore vs. our expectations of Rs. 88.2 crore. OPM for the quarter remained at 25% (up18 bps YoY). Adjusting the exceptional gain to the tune of Rs. 15.5 crore on account of sale of CCPL shares along with other income of Rs. 7.54 crore due to refund of income tax in Q4FY21, adjusted PAT was up 3% YoY to Rs. 59.5 crore against our estimates of Rs. 62.4 crore.

Valuation & Outlook

We believe post commissioning of speciality chemical and HPP plants, high value added segment revenue mix should inch up to more than 70%, leading to better gross margins and OPM for the group. In turn, this should aid return ratios, FCF and, thereby, assist the company to demand better valuations. We value the company at 45x PER of FY23E (~1.5x PEG). We arrive at a target price of Rs. 3460 (vs. Rs. 2820 earlier). We maintain HOLD recommendation on the stock.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_NavinFluorine_Q4FY21.pdf

Shares of Navin Fluorine International Limited was last trading in BSE at Rs.3163.7 as compared to the previous close of Rs. 3213.05. The total number of shares traded during the day was 25052 in over 2442 trades.

The stock hit an intraday high of Rs. 3268.6 and intraday low of 3156.95. The net turnover during the day was Rs. 80241248.

Source : Equity Bulls

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