NAVINFLUOR Fundamental Analysis | P/E, ROE & Financial Health

Fundamental Rating: 3.5

Stock Code	NAVINFLUOR	Market Cap	30,511 Cr.	Current Price	5,950 ₹	High / Low	6,274 ₹
Stock P/E	78.5	Book Value	674 ₹	Dividend Yield	0.20 %	ROCE	11.7 %
ROE	11.5 %	Face Value	2.00 ₹	DMA 50	5,841 ₹	DMA 200	5,169 ₹
Chg in FII Hold	1.59 %	Chg in DII Hold	-1.48 %	PAT Qtr	134 Cr.	PAT Prev Qtr	113 Cr.
RSI	50.8	MACD	34.4	Volume	43,384	Avg Vol 1Wk	1,23,711
Low price	3,566 ₹	High price	6,274 ₹	PEG Ratio	30.0	Debt to equity	0.01
52w Index	88.0 %	Qtr Profit Var	168 %	EPS	77.5 ₹	Industry PE	26.3

📊 Core Financials

Revenue & Profitability: Quarterly PAT improved from 113 Cr. to 134 Cr. (+168% YoY), showing strong earnings momentum. EPS at 77.5 ₹ reflects decent profitability.

Margins: ROCE at 11.7% and ROE at 11.5% are modest, indicating average efficiency compared to industry leaders.

Debt: Debt-to-equity ratio of 0.01 highlights a nearly debt-free balance sheet, strengthening financial resilience.

Cash Flow: Dividend yield of 0.20% is very low, suggesting reinvestment focus rather than shareholder payouts.

💹 Valuation Indicators

P/E Ratio: 78.5 vs Industry PE of 26.3 → Significantly overvalued compared to peers.

P/B Ratio: Current Price (5,950 ₹) / Book Value (674 ₹) ≈ 8.8 → Premium valuation.

PEG Ratio: 30.0 → Extremely high, suggesting weak growth prospects relative to price.

Intrinsic Value: Current price trades well above fair value, limiting near-term upside.

🏭 Business Model & Competitive Advantage

Navin Fluorine operates in specialty chemicals, fluorochemicals, and high-value niche products.

Strong R&D capabilities and focus on specialty segments provide competitive advantage.

Global demand for fluorochemicals supports long-term growth, though profitability metrics remain modest.

📈 Entry Zone & Long-Term Guidance

Entry Zone: Attractive accumulation range between 4,800 ₹ – 5,200 ₹, closer to DMA 200 support levels.

Long-Term Holding: Suitable for investors seeking exposure to specialty chemicals. Staggered buying recommended due to high valuations and modest return ratios.

✅ Positive

Debt-free balance sheet ensures financial stability.

Quarterly PAT growth (+168% YoY) shows strong earnings momentum.

FII holding increased by 1.59%, showing foreign investor confidence.

⚠️ Limitation

High P/E (78.5) and P/B (8.8) ratios indicate stretched valuations.

ROE (11.5%) and ROCE (11.7%) are modest compared to peers.

Dividend yield of 0.20% is very low, limiting passive income appeal.

📉 Company Negative News

DII holding decreased by 1.48%, showing reduced domestic institutional support.

Valuation multiples remain significantly higher than industry averages.

📈 Company Positive News

Quarterly PAT rose from 113 Cr. to 134 Cr.

FII inflows (+1.59%) highlight foreign investor interest.

Strong positioning in specialty chemicals supports long-term growth.

🌐 Industry

Specialty chemicals sector benefits from global demand and niche applications.

Industry PE at 26.3 suggests Navin Fluorine trades at a steep premium, reflecting growth expectations but modest fundamentals.

🔎 Conclusion

Navin Fluorine demonstrates financial stability with debt-free operations and strong earnings momentum. However, high valuations, modest return ratios, and low dividend yield limit near-term attractiveness. Investors may consider entering around 4,800–5,200 ₹ for long-term holding, with staggered buying to manage valuation risks. The company remains strategically well-positioned in specialty chemicals but requires caution due to stretched pricing.

I can also outline technical support and resistance zones using RSI, MACD, and DMA data to complement this fundamental analysis if you’d like.

NAVINFLUOR - Fundamental Analysis: Financial Health & Valuation

Rating: 3.5