NAVINFLUOR - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.8
| Stock Code | NAVINFLUOR | Market Cap | 34,960 Cr. | Current Price | 6,821 ₹ | High / Low | 7,208 ₹ |
| Stock P/E | 70.9 | Book Value | 715 ₹ | Dividend Yield | 0.18 % | ROCE | 21.3 % |
| ROE | 16.0 % | Face Value | 2.00 ₹ | DMA 50 | 6,271 ₹ | DMA 200 | 5,673 ₹ |
| Chg in FII Hold | 0.04 % | Chg in DII Hold | -0.48 % | PAT Qtr | 127 Cr. | PAT Prev Qtr | 120 Cr. |
| RSI | 68.1 | MACD | 133 | Volume | 25,17,859 | Avg Vol 1Wk | 8,87,421 |
| Low price | 4,188 ₹ | High price | 7,208 ₹ | PEG Ratio | 4.07 | Debt to equity | 0.03 |
| 52w Index | 87.2 % | Qtr Profit Var | 65.2 % | EPS | 95.2 ₹ | Industry PE | 28.9 |
📊 Financials: NAVINFLUOR shows solid efficiency with ROE at 16.0% and ROCE at 21.3%. EPS is strong at ₹95.2, supported by quarterly PAT growth (₹127 Cr vs ₹120 Cr, +65.2%). Debt-to-equity ratio is very low at 0.03, reflecting a nearly debt-free balance sheet. Dividend yield of 0.18% is minimal, offering little income support.
💹 Valuation: The stock trades at a P/E of 70.9, far above the industry average of 28.9, indicating stretched valuation. PEG ratio of 4.07 highlights overvaluation relative to growth. Book value of ₹715 provides intrinsic strength, but current multiples remain expensive. RSI at 68.1 suggests overbought conditions.
🏭 Business Model: NAVINFLUOR operates in specialty chemicals and fluorine-based products, with strengths in niche markets, R&D, and global demand. Its competitive advantage lies in product specialization and strong institutional presence. However, high valuations and modest profitability growth limit near-term attractiveness.
📈 Entry Zone: Attractive entry would be near ₹6,500–₹6,600, aligning with support levels and fairer valuation. Current price (₹6,821) is above both 50 DMA (₹6,271) and 200 DMA (₹5,673), suggesting bullish momentum but stretched valuations. Long-term investors should accumulate cautiously on dips.
Positive
- Strong EPS of ₹95.2.
- Quarterly PAT growth (+65.2%).
- Low debt-to-equity ratio (0.03).
- ROCE (21.3%) reflects solid efficiency.
Limitation
- High P/E (70.9) vs industry average (28.9).
- PEG ratio of 4.07 indicates overvaluation.
- Dividend yield of 0.18% is negligible.
- DII holdings declined (-0.48%), showing reduced domestic support.
Company Negative News
- Valuation stretched with high P/E and PEG ratio.
- Decline in DII holdings (-0.48%).
Company Positive News
- Quarterly PAT improved to ₹127 Cr (+65.2%).
- FII holdings increased slightly (+0.04%).
- Strong efficiency metrics and nearly debt-free balance sheet.
Industry
- Specialty chemicals sector remains demand-driven and competitive.
- Industry P/E at 28.9 highlights NAVINFLUOR’s premium valuation.
- Global demand supports long-term growth, but valuations are stretched.
Conclusion
⚖️ NAVINFLUOR demonstrates strong efficiency, debt-free status, and earnings growth but trades at stretched valuations. Entry is favorable near ₹6,500–₹6,600 for long-term investors. Current levels suggest cautious accumulation, with better opportunities on dips. Holding is viable if earnings growth sustains, but valuation risks remain elevated.