NAVINFLUOR - Investment Analysis

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

Investment Rating: 3.4

🔬 Fundamental Analysis: Navin Fluorine International Ltd. (NAVINFLUOR)

Navin Fluorine is a specialty chemicals player with strong brand equity and niche capabilities in fluorochemicals. However, its current valuation is extremely rich, and growth metrics—while decent—do not justify the premium at this stage.

Metric Value Implication

P/E Ratio 91.4 Extremely overvalued vs. industry PE of 34.4 — pricing in future growth

PEG Ratio 29.9 Alarmingly high — suggests growth is overpriced

ROE / ROCE 11.5% / 11.7% Moderate — not compelling for such a high valuation

Dividend Yield 0.23% Negligible — not suitable for income investors

Debt-to-Equity 0.56 Moderate leverage — acceptable but worth monitoring

EPS ₹58.2 Decent — but not enough to justify current price

Profit Growth (QoQ) +13.6% Healthy — but not explosive

📈 Technical & Trend Analysis

Current Price: ₹5,149

DMA 50 / DMA 200: ₹4,768 / ₹4,209 — strong bullish momentum

RSI: 63.3 — nearing overbought zone

MACD: +101 — strong upward momentum

Volume: Below average — suggests cautious optimism

⚠️ Long-Term Investment Potential

Caution Advised. While Navin Fluorine is a high-quality business, the stock is priced for perfection. The PEG ratio and P/E are far above reasonable levels, making it vulnerable to valuation compression if growth slows.

🎯 Ideal Entry Price Zone

Buy Zone: ₹4,200–₹4,500

Near 200-DMA and prior consolidation levels

Only accumulate if PEG drops below 2 and ROCE improves toward 15%

Avoid fresh entry above ₹5,000 unless earnings growth accelerates significantly

🧭 Exit Strategy & Holding Period

If you're already holding

Holding Period: 1–2 years — monitor valuation and earnings closely

Exit Strategy

Partial Exit near ₹5,300–₹5,500 if P/E remains >80 and PEG stays above 20

Hold only if ROE and ROCE improve to >15% and PAT growth sustains above 25%

Reassess if debt increases or institutional interest wanes

Would you like a valuation screen for other specialty chemical stocks with better PEG ratios and ROCE profiles for long-term compounding?

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