Stock in Action - Navin Fluorine 24 October 2024

Highlights

1. Navin Fluorine's share price has declined over -10% year to date in 2024 including today’s 4.58% gain.

2. Navin Fluorine's financial performance has decreased over the past year with operating profit decreasing from ₹550 crores in March 2023 to ₹393 crores till TTM 2024.

3. Navin Fluorine's quarterly earnings report highlighted an improvement in net profit in the September quarters.

4. Jefferies has rated Navin Fluorine shares as underperforming and set a target price of ₹2,950. Currently stock is treading at ₹3,450 per share.

5. Emkay Global Financial has advised investors to reduce their holdings in Navin Fluorine and set a target price of ₹3,500 for the stock in their research report.

6. Navin Fluorine stock has underperformed the market by delivering just -0.76% returns in the last year.

7. Navin Fluorine is currently trading at ₹3,450 showing a 4.31% increase as of 11:49 pm on NSE.

8. Navin Fluorine has a strong Return on Equity (ROE) of 10.1% and a Return on Capital Employed (ROCE) of 10.4%.

9. Navin Fluorine International reported a 2.9% drop in its net profit for the quarter ending 30 September. This decline was expected and matches what analysts had predicted.

10. As per the September quarter filings the company has a 28.43% promoter holding, 28.18% DII holding and 18.23% foreign institutional investor (FII) holding.

Why is Navin Fluorine Share in News?

Navin Fluorine International released its Q2 results on 23 October 2024 showing mixed outcomes for the quarter. The company’s revenue rose by nearly 10% compared to last year, reaching a new high however, profits fell by about 3%.

In a comparison with the previous quarter revenue dipped slightly by approximately 1% while profits increased by over 15% indicating some financial ups and downs. Selling, General and Administrative expenses went down by 1.6% from last quarter but increased significantly by 26.4% compared to last year, raising concerns about how the company manages costs.

Despite the challenges in revenue, operating income grew by nearly 8% from the last quarter and by about 7.2% from last year suggesting steady operations. Earnings per Share for Q2 is ₹11.85 down by about 2.7% from last year reflecting the drop in profits despite higher revenue.

In terms of market performance, the stock has decreased by 4.4% over the past week, with a modest return of 4.3% over six months and a larger decline of 11% year to date. The company’s market capitalization stands at ₹17,184 Crores with a 52-week trading range between ₹2,876 and ₹3,979 indicating volatility in its stock price.

About Navin Fluorine

Navin Fluorine International, a prominent player in the specialty chemicals sector has established itself as a key manufacturer of fluorine based chemicals. With a diverse product portfolio that includes refrigerants, pharmaceutical intermediates and agrochemicals, the company caters to various industries including healthcare, agriculture and refrigeration. Navin Fluorine has continually expanded its operations, leveraging cutting edge technology and strong research and development capabilities to enhance product offerings and improve efficiency.

As it navigates the challenges of a dynamic market landscape Navin Fluorine remains focused on strategic growth initiatives including expanding its product range and enhancing its global presence. With a robust financial performance and a commitment to innovation the company is well positioned for future growth in the evolving specialty chemicals industry.

Conclusion

Navin Fluorine International is currently navigating a complex financial landscape, reflected in its mixed Q2 results and year to date stock performance. Despite a nearly 10% increase in revenue compared to the previous year, the decline in profits raises concerns about cost management. Analysts have mixed views on the stock, with some advising caution and setting target prices below its current trading level. However, the company's strong Return on Equity and commitment to innovation position it well for future growth. As it adapts to market challenges investors will be closely watching Navin Fluorine's performance in the coming quarters.