Hold Navin Fluorine: target of Rs 2820: ICICI Direct

Date:02-12-2021

Navin Fluorine reported topline growth of 19% YoY to Rs 309 crore against our estimate of Rs 305 crore. The growth was largely led by the CRAMS, speciality chemical segments, which were up 51% YoY, 26% YoY to Rs 71 crore, Rs 122 crore, respectively. 

Revenue from inorganic fluoride remained higher by 12% YoY to Rs 57 crore while the same from refrigerant was down 18% YoY to Rs 47 crore. 

Despite the value added segments, revenue remained higher compared to legacy business. 

Gross margins for the quarter fell 342 bps YoY to 53.9%, leading to lower than expected EBITDA for the quarter. 

EBITDA grew 23% YoY to Rs 80.5 crore vs. our expectation of Rs 90.5 crore. 

OPM for the quarter remained at 26% (up 90 bps YoY). 

PAT was up 30% YoY to Rs 58.9 crore against our estimate of Rs 66.8 crore.