Navin Fluorine International Ltd Analysis

In the summer the demand for coolers, refrigerators and air-conditioners is very high. You will always see smart money investing in stocks like Symphony Ltd, Bluestar, Voltas etc. Very few investors understand the importance of refrigerants gases manufacturers in share market. It is because they fail to connect the link between these chemical companies with summer. It is important to focus on companies like SRF and Navin Fluorine during summer. The reason behind choosing NFIL over SRF is the consistent performance of NFIL in the last 5 years (return of 985% in 5 yrs) and the possible upside in the year 2019. Before starting the Fundamental Analysis of NFIL let’s see some details about the company.

Navin Fluorine Logo

Company Profile

  • Company Name: Navin Fluorine International Ltd
  • Company Website: www.nfil.in
  • House Name: P.Mafatlal Group
  • Industry: Chemicals -Others
  • Year of Incorporation: 1998
  • Regd Off: Vile Parle, Mumbai
  • Market Capital: Rs. 3647.96 Cr
  • Date of Listing: 30th Sept 2003
  • Sectors: Fine and Speciality Chemicals, Crop Sciences, Refrigerants, and Life Sciences etc.

Fundamental Analysis of Navine Fluorine International Ltd.

As the name suggests company focusses on Fluorine Chemistry which is an essential part of the Refrigeration industry. Navin Fluorine has a brand called Mafron under which it manufactures refrigeration gases. It also produces inorganic fluorides which are required in pharma and agro sectors. The inorganic fluorides are also used in other industries like Oil and Gas, Glass, Abrasive and electronics too.

The third important business of NFIL is large scale manufacturing of Specialty Fluorochemicals required for Agriculture, Pharmaceutical and Petrochemical Industries. It manufactures fluorine-based intermediaries for the speciality chemical industry. The fourth segment of NFIL is CRAMS. Navin Fluorine International Ltd. offers Contract Research and Manufacturing Services for custom chemical synthesis of fluorinated compounds.

Navin Fluorine Share Price

  • Current Market Price on NSE on 07/04/2019 is 735.75
  • 52 Week High/Low of NFIL are 579.70/820
  • Face value: Rs. 2
  • Number of Outstanding shares: 4,94,46,885
  • P/E : 23.96 vs Industry P/E : 22.68
  • EPS-TTM (Rs): 30.71
  • Book Value/ Share: 199.2
  • Returns: 1 yr (-8%), 3 yrs( 121%) and 5 yrs (985%)

Shareholding pattern of NFIL

  1. Promoters: 31.03%
  2. General Public: 28.17%
  3. NBFC and Mutual Funds: 16.46%
  4. Foreign Institutions: 16.08%
  5. Others: 7.21%
  6. Financial Institutions: 1.06%

Key financials of Navin Fluorine

Particulars /All Figures are in CrMar-18Mar-17Mar-16
Total Shareholders Funds969.99823.52633.54
Total Capital and Liabilities1999.171123.51847.92

Comment: Over the years Navin Fluorine has become highly Cash-rich company with No-debt on it. It has good Assets over liabilities and good cash reserves.

Particulars/ Figures in Rs. CrMar-18Mar-17Mar-16
Total Revenue966.35749.81660.93
Total Expenses703.86573.05544.22
Profit/Loss for the period178.96132.6586.47

Comment: Navin Fluorine is a profitable entity and performing really good. The company has become a Midcap company from a Small Cap company now due to its consistent performance.

ParticularsMar-18Mar-17Mar-16
EPS36.3427.1088.44
Equity Share Dividend35.5934.7520.55
ParticularsMar-18Mar-17Mar-16
Return of Networth/Equity (%)18.4516.1013.64
Return of Capital Employed (%)17.5515.2712.41
Return on Assets (%)14.9211.8010.19

Comment: NFIL is paying good dividend to its investors. On the completion of its 50 yrs it also announced special dividend.

Stocksbaazigar on Navin Fluorine International Ltd.

After listening to the Con call of Navin Fluorine on YouTube, I can fairly say that Management of company is confident about the growth from their core business and expecting 30-32% year on year growth. After the laws on Carbon Footprints, organized players like Navin Fluorine International Ltd which was dominant player in Refrigerant gases well-diversified within the Fluoro-chemical businesses which has increased its Product line for better. The acquisition of Manchester Organics Ltd added a portfolio of over 27000 compounds and 3000 IPs to the NFIL. In Dewas, Madhya Pradesh NFIL made strategic investments in cGMP pilot and Multi-purpose plant.

As this stock has performed really well in last decade, investors should buy it only on dips and hold them with strict stop losses. Chart of NFIL is really good too. From January to April there is a good delivery-based buying in it. Navin Fluorine International Ltd. company is fundamentally really strong and looks attractive on Technical parameters too. All the 4 BUs of Navin Fluorine will show good growth in the future. A stock of NFIL is a good buy with Stop loss at 698 for the 1-year Target Price of 850. I won’t be surprised to see if the stock over-performs and touches 890 till Dec 2019.

Disclaimer: Please note, Stocksbaazigar Mr. Deepak Doddamani is not a SEBI Registered Advisor. He is NSE’s Certified Investment Analysis Professional and NSE’s Certified Marketing Professional Level – 4. Do not consider this post as Recommendation. Stocksbaazigar won’t be responsible for your Profit/Loss. This is an Educational post and should be treated like one. Thank You.

Navin Fluorine International Ltd fundamentals explained by Stocksbaazigar

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