NAVINFLUOR - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.1

📊 Core Financials Overview

Profitability

PAT surged from ₹76.6 Cr to ₹113 Cr — a robust 125% quarterly growth, indicating strong operational momentum.

EPS: ₹61.4 — solid earnings base, though valuation remains stretched.

Return Metrics

ROCE: 11.7% and ROE: 11.5% — moderate, suggesting decent but not exceptional capital efficiency.

Debt Profile

Debt-to-equity: 0.56 — manageable leverage, typical for expansion in specialty chemicals.

Cash Flow: Not disclosed, but consistent profitability and moderate debt imply stable operating cash flows.

💹 Valuation Indicators

Metric Value Commentary

P/E Ratio 82.4 Extremely high vs. industry average of 33.9 — reflects premium pricing.

P/B Ratio ~9.23 Elevated — justified only if growth sustains.

PEG Ratio 31.4 Very high — valuation appears stretched relative to growth.

Intrinsic Value ~₹2,944.69 Current price of ₹4,894 is ~66% above intrinsic value — significantly overvalued

1

.

🧠 Business Model & Competitive Advantage

Navin Fluorine International Ltd. (NFIL) is a leading player in India’s fluorochemicals sector, with a diversified and innovation-driven model

Revenue Streams

Specialty Chemicals: Contributes over 84% of total revenue — includes fluorine derivatives used in pharma, electronics, and automotive.

Contract Manufacturing: ~13% of revenue — aligned with global outsourcing trends

2

.

Operational Efficiency

Reduced production costs by ~10% YoY — enhances pricing flexibility

2

.

Market Position

Holds ~18% market share in domestic fluorochemicals — a leading status

2

.

Strategic Expansion

Active in global markets, with ventures across Europe and North America.

Strong focus on quality and compliance — key for regulated sectors like pharma.

Its competitive edge lies in product innovation, cost control, and sectoral diversification, positioning it well in the evolving specialty chemicals landscape.

📈 Technical & Sentiment Signals

RSI: 53.0 — neutral zone, no strong momentum.

MACD: Negative — mild bearish crossover.

Volume: Below average — suggests consolidation.

DMA 50/200: Price above both — confirms long-term uptrend.

🎯 Entry Zone & Long-Term Guidance

Suggested Entry Zone: ₹4,300–₹4,600 — closer to intrinsic value and below RSI peak.

Long-Term View: NAVINFLUOR is a high-quality specialty chemicals play with strong fundamentals and global exposure. However, current valuation is rich. Best suited for long-term investors who believe in the fluorochemicals growth story and are comfortable with premium pricing. Dividend yield of 0.25% is minimal, so returns depend primarily on capital appreciation.

For deeper insights, you can explore NAVINFLUOR’s financial health and business breakdown

2

or its intrinsic valuation analysis

1

. Let me know if you'd like a comparison with Deepak Nitrite or SRF.

1

www.alphaspread.com

2

dcfmodeling.com

Edit in a page