Buy Navin Fluorine; target of Rs 451: Firstcall Research Firstcall Research is bullish on Navin Fluorine International and has recommended buy rating on the stock with a target of Rs 451 in its May 23, 2012 research report. “Navin Fluorine International Limited belongs to a reputed industrial house of Arvind Mafatlal Group in India. It has largest integrated fluoro chemicals complex in India, since 1967. The company primarily focuses on three businesses �" Refrigeration gases, Chemicals/ Bulk Fluorides and Specialty Organ fluorine with manufacturing facilities at Surat, Gujarat and Dewas, Madhya Pradesh. And it is a public limited company NFIL has Quality system accreditation with ISO 9001, Environment Management System accreditation with ISO 14001, World class safety standards 5 star rating by British Safety Council and OHSAS-18001 certified entity. The company has ability to produce some of the niche organ fluorine molecules. It offers a diversified portfolio of advanced fluorine derivatives to the world with wide ranging applications in pharma, agro and petrochemicals. Navin Fluorine has an impressive clientele consisting of several fortune 500 companies which include five of the top ten global crop protection companies and three of the top ten global chemical companies.” “Navin Fluorine International Ltd has reported net profit of Rs 784.02 million for the quarter ended on March.31, 2012 as against 408.69 million in the same quarter last year, an increase of 91.84%. It has reported net sales of Rs 1566.41 million for the quarter ended on March.31, 2012 as against Rs 1707.45 million in the same quarter last year, a decrease of 8.26%. Total income grew by 34.25% to Rs 2350.24 million from Rs.1750.59 million in the same quarter last year. During the quarter, it reported earnings of Rs 80.35 a share.” “At the current market price of Rs 399 the stock is trading at 1.49 x FY13E and 1.34 x FY14E respectively. Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.267.91 and Rs.297.07 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 27% and 59% over 2011 to 2014E respectively. On the basis of EV/EBITDA, the stock trades at 1.02 x for FY13E and 0.93 x for FY14E. Price to Book Value of the stock is expected to be at 0.52 x and 0.38 x respectively for FY13E and FY14E. We expect that the company will keep its growth story in the coming quarters also. We recommend ‘BUY’ in this particular scrip with a target price of Rs 451 for medium to long term investment,” says Firstcall Research report.
Posted on: Sun, 08 Sep 2013 10:45:03 +0000
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