Target: ₹8,500
CMP: ₹7,009.70
Navin Fluorine International has a strong presence across CDMO, Specialty Chemicals and High-Performance Products (HPP) segments. Leveraging deep fluorine chemistry expertise and backward integration, the company serves global pharma, agrochemical, refrigerant and specialty material customers, with exports (about 70 per cent) forming a significant share of revenues.
Q4FY26 was strong, with revenue up 34 per cent year on year to ₹938 crore. CDMO revenues grew 61 per cent, Specialty Chemicals 39 per cent, while HPP rose 20 per cent on firm HFC-32 pricing and higher utilisation.
FY27 is expected to be a milestone year as major investments transition to revenue. R-32 refrigerant ramp-up in HPP will benefit from strong demand and pricing; multi-purpose plants debottlenecking will boost Specialty Chemicals and CDMO output, and the long-term strategic manufacturing and supply agreement with the Chemours company (in the US) will add long-term, high-margin contracted revenues. This is backed by about 80 per cent capacity utilisation visibility for Specialty Chemicals and a 50-55 molecule CDMO pipeline.
As per market consensus, Navin Fluorine trades at 43x one-year forward P/E, below its five-year average P/E. The outlook remains positive, supported by strong medium-term revenue visibility, structurally-elevated EBITDA margins (over 30 per cent), rising export mix, a robust CDMO order pipeline, commissioning of the Chemours project, and sustained strength in ref-gas and R-32 capacity ramp-up.