NAVINFLUOR - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.9

Navin Fluorine International Ltd. is a niche chemicals and fluorochemicals company with strong profitability and growth momentum. However, valuation metrics suggest it’s priced for near perfection.

🧾 Core Financials Overview

Profitability

ROCE: 11.7%, ROE: 11.5% — modest returns given its premium valuation; efficiency could improve.

EPS: ₹58.2 — healthy earnings that support long-term confidence.

PAT Growth

PAT grew from ₹83.6 Cr. to ₹95 Cr. — +34.9% QoQ, pointing to solid operational scalability.

Leverage

Debt-to-equity: 0.56 — manageable but rising debt may be funding capex.

Dividend

Yield: 0.23% — minimal, favoring reinvestment strategy over income generation.

📊 Valuation Breakdown

Metric Value Interpretation

P/E Ratio 91.4 Extremely expensive, almost 3x industry average of 34.4

P/B Ratio ~9.7 High relative to asset base

PEG Ratio 29.9 Very elevated; indicates growth already priced in

Book Value ₹530 Significantly below trading price

Intrinsic Value Challenged Needs strong forward growth to justify valuation

Verdict: Stock is overvalued. Long-term viability depends on sustaining superior margins and strategic wins in high-value segments.

🧪 Business Model & Competitive Advantage

Operates in specialty fluorochemicals and contract manufacturing for global clients in pharmaceuticals, agrochemicals, and refrigeration gases.

Focus on value-added products and R&D-driven innovation creates strong entry barriers.

Benefits from strong export exposure, expanding high-margin businesses, and client stickiness.

Risks include regulatory scrutiny (environmental), supply chain volatility, and stretched valuations.

📈 Technical Insights

RSI: 63.3 — leaning toward overbought; cautious zone.

MACD: 101 — indicates bullish momentum.

Price at 52-week high (₹5,180) — technically strong but vulnerable to profit booking.

Trading above DMA 50 & 200 (₹4,768 & ₹4,209) — confirms trend, but entry may need patience.

🎯 Entry Zone & Holding Outlook

Recommended Entry Range: ₹4,600–₹4,750 — closer to 50-DMA; avoid chasing highs.

Investment Horizon

Suited for long-term portfolios (3+ years) with appetite for high-growth, high-valuation bets.

Ideal for thematic exposure to clean-tech, global pharma inputs, and innovation-led manufacturing.

Hold with quarterly monitoring of capex execution and margin sustainability.

Want to evaluate this against Deepak Nitrite, SRF, or Gujarat Fluorochemicals? I can map the molecules to find the winning compound in your chemicals portfolio. 🧪📈💼

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