Chemicals & Petrochemicals
Navin Fluorine International Limited manufactures and sells specialty fluorochemicals in India and internationally. The company offers refrigerants for various applications, including window and split room air conditioners, chillers, packaged air conditioners, commercial and industrial refrigeration units, intermediate for active pharmaceutical ingredient, fluoropolymer resins, domestic and industrial refrigerators, and mobile air conditioning under the Mafron brand for original equipment manufacturer, service technicians, and equipment owners. It provides inorganic fluoride products, such as ammonium bifluoride, potassium fluoride, sodium fluoride, potassium fluorotitanate, potassium fluoroborate, hexafluorophosphoric acid, and hydrofluo pyridine and hydrofluo urea complex products for oil and gas, stainless steel, pharmaceutical and agrochemicals, abrasives, electronics, and solar energy industries. In addition, the company offers various specialty fluoro intermediates consisting of boron trifluoride gas and adducts for pharmaceutical industry, as well as crop protection, hydrocarbon, and fragrance applications; and contract development and contract manufacturing services comprising basic research, library syntheses, process development, scale up, and batch manufacturing for custom chemical syntheses of fluorinated compounds in the pharmaceuticals, agro chemicals, and specialty chemicals industries. Navin Fluorine International Limited was founded in 1967 and is headquartered in Mumbai, India.
Summary of Navin Fluorine International's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
Last updated: Feb 25
Management Outlook and Major Points:
Outlook:
Key Highlights:
Strategic Priorities: Focus on customer relationships, new acquisitions, and disciplined capex (INR1,200"“1,400 crore over 3 years) to drive long-term value.
Last updated: Feb 25
Question 1 (Sanjesh Jain, ICICI Securities):
"On the Nectar project, we have started dispatches, but is the performance of the plant on the expected line in terms of yield, operation and all, and has it been running on the expected line there?"
Answer: The plant is ramping up progressively with a focus on safety and reliability. Commercial dispatches began in December 2023, but full utilization will take time due to complex chemistry. The ramp-up is expected to reach peak capacity over two years, with FY25 contributions being gradual and FY27 targeted for full revenue potential.
Question 2 (Sanjesh Jain, ICICI Securities):
"On CDMO, particularly on the Fermion product... Is it fair to assume that now with the registration probably completed soon, we should be scaling up? And when you say we have secured the order for CY '25, what is the quantum of order that we are talking about?"
Answer: Registration for the Fermion MSA contract is in advanced stages (expected April/May 2025), with direct dispatches already starting. CY25 orders are secured and expected to match or exceed current volumes. FY26 projections remain strong, with 30% of the $100M CDMO target (FY27) tied to this contract.
Question 3 (Sanjesh Jain, ICICI Securities):
"On Specialty Chemicals... Is the classification difference or there is a delivery difference? How should one read about it?"
Answer: Domestic vs. export classification reflects supply-chain logistics (delivery to local partners of global customers), not market demand. Capacity utilization at Dahej/Surat improved to ~85% in Q3 due to volume-driven strategies and process efficiencies.
Question 4 (Sanjesh Jain, ICICI Securities):
"Once the AHF plant starts, what is the savings that we could do as we are buying AHF now from the outside market?"
Answer: Captive AHF (25,000"“27,000 MT for internal use) reduces reliance on external purchases. Merchant sales (6,000"“7,000 MT) will improve margins. The project also enables entry into higher-value AHF applications (e.g., high-purity grades for EVs via collaborations).
Question 5 (Madhav Marda, FIL Industries):
"On the Specialty Chemical business... Are we seeing the cycle kind of turning finally after almost 6, 7 quarters of weakness?"
Answer: Agri-chemical demand fundamentals remain strong long-term (crop protection, biofuels). Near-term pricing pressures persist, but NFIL secured volumes via customer partnerships, process improvements, and new molecule launches (2 in Q4/Q1).
Question 6 (Madhav Marda, FIL Industries):
"On R32... How do you look at R32 pricing for us, domestic and export market?"
Answer: R32 demand remains constructive globally. Pricing is expected to rise due to tight supply-demand dynamics. NFIL's incremental R32 capacity (4,500 MT by Feb 2025) and discussions with global players for further expansion signal optimism.
Question 7 (Sudarshan Padmanabhan, JM Financial):
"On CDMO... Beyond the $100 million, are we in a sweet spot with late-stage products?"
Answer: CDMO's growth is diversified across ~35"“50 active molecules, with 8"“10 in commercial stages. The pipeline includes oncology/neurology therapies. cGMP4 Phase 1 (INR160cr) commissioning in Q3FY26 will support scalability, with land reserved for future expansions.
Question 8 (Rohit Nagraj, B&K Securities):
"On AHF... How many years will it take to fulfill captive capacity optimally?"
Answer: AHF is a strategic enabler for higher-value fluorochemicals. Captive demand will absorb most capacity, with merchant sales focused on premium segments. Realization/kg improvement is prioritized over volume timelines.
Question 9 (Ankur Periwal, Axis Capital):
"On Specialty Chemicals' new molecules... What is the revenue timeline?"
Answer: The INR540cr agro plant's peak revenue (INR515cr) is expected in FY27. Other projects (MPP, Orchid) will near peak utilization in FY26. Margin sustainability (24.3% in Q3) stems from operating leverage, procurement efficiencies, and fixed-cost control.
Question 10 (Jignesh Kamani, Nippon Mutual Funds):
"On Project Nectar's anchor client... Are approvals for new customers delayed?"
Answer: The anchor client's ramp-up is gradual (safety-first approach). FY25 revenue will be limited, with ~40-45% of peak expected in FY26. Qualification batches for 2-3 additional customers are underway, with FY27 commercialization targeted.
Question 11 (Nirav Jimudia, Anvil Research):
"On fluorspar supply risks... How is NFIL placed?"
Answer: Fluorspar sourcing is diversified (Mexico, China, Africa) via long-term contracts. The new AHF plant is designed to handle multiple ore types, mitigating supply risks. No disruptions are anticipated.
Question 12 (Keyur Pandya, ICICI Prudential):
"On cGMP3/cGMP4 revenue potential..."
Answer: cGMP3 peak revenue is ~$50-60M. cGMP4 Phase 1 (dedicated to Fermion) will ramp quickly, contributing significantly to FY27's $100M CDMO target. Employee costs stabilized at INR70-75cr/quarter post-ESOP adjustments.
Investor Care | |
---|---|
Dividend Yield | 0.44% |
Dividend/Share (TTM) | 20 |
Shares Dilution (1Y) | 0.04% |
Diluted EPS (TTM) | 53.19 |
Financial Health | |
---|---|
Current Ratio | 1.55 |
Debt/Equity | 0.55 |
Debt/Cashflow | 0.55 |
Balance Sheet: Strong Balance Sheet.
Smart Money: Smart money is taking extra interest in the stock as they increase their holdings.
Momentum: Stock price has a strong positive momentum. Stock is up 7.1% in last 30 days.
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Profitability: Recent profitability of 12% is a good sign.
Size: Market Cap wise it is among the top 20% companies of india.
No major cons observed.
Comprehensive comparison against sector averages
NAVINFLUOR metrics compared to Chemicals
Category | NAVINFLUOR | Chemicals |
---|---|---|
PE | 85.47 | 53.74 |
PS | 9.83 | 4.52 |
Growth | 3.9 % | 7.3 % |
NAVINFLUOR vs Chemicals (2021 - 2025)
Understand Navin Fluorine International ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
Shareholder Name | Holding % |
---|---|
MAFATLAL IMPEX PRIVATE LIMITED n(Mafatlal Exim Pvt Ltd amalgamated with Mafatlal Impex Pvt Ltd) | 26.29% |
Other | 12.47% |
LIFE INSURANCE CORPORATION OF INDIA | 9.81% |
GOVERNMENT PENSION FUND GLOBAL | 3.2% |
ICICI PRUDENTIAL MUTUAL FUNDS | 3.1% |
SBI MUTUAL FUNDS | 1.83% |
AXIS MUTUAL FUND TRUSTEE LIMITED | 1.71% |
DSP MUTUAL FUNDS | 1.53% |
ADITYA BIRLA SUN LIFE TRUSTEE PRIVATE LIMITED | 1.51% |
GOLDMAN SACHS FUNDS - GOLDMAN SACHS INDIA EQUITY | 1.43% |
EDELWEISS MUTUAL FUNDS | 1.21% |
VISHAD PADMANABH MAFATLAL | 1.08% |
AJAY UPADHYAYA | 1.01% |
VISHAD MAFATLAL AS TRUSTEE OF VISHAD P MAFATLAL FAMILY TRUST NO. 1 | 0.77% |
VISHAD PADMANABH MAFATLAL PUBLIC CHARITABLE TRUST NO. 1 | 0.24% |
PADMANABH ARVIND MAFATLAL (HUF)t | 0.03% |
VISHAD P. MAFATLAL PAM HUF1 P MAFATLALt | 0.01% |
PAMIL INVESTMENTS PVT LTD | 0.01% |
TEREBINTH VENTURES PRIVATE LIMITED (formerly known as Anshi Ventures Private Limited) | 0% |
RUPAL VISHAD MAFATLALt | 0% |
Distribution across major stakeholders
Distribution across major institutional holders
Detailed comparison of Navin Fluorine International against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
---|---|---|---|---|---|---|---|---|---|
PIDILITIND | Pidilite IndustriesSpecialty Chemicals | 1.53 LCr | 13.12 kCr | +5.58% | +0.69% | 77.57 | 11.67 | +6.77% | +14.11% |
SRF | SRFSpecialty Chemicals | 88.48 kCr | 14.07 kCr | +0.11% | +11.84% | 77.15 | 6.29 | +4.78% | -22.29% |
FLUOROCHEM | Gujarat FluorochemicalsSpecialty Chemicals | 42.46 kCr | 4.7 kCr | -1.95% | +6.16% | 93.11 | 9.04 | +0.35% | -31.52% |
AARTIIND | Aarti IndustriesSpecialty Chemicals | 15.44 kCr | 7.11 kCr | +6.27% | -42.65% | 42.08 | 2.17 | +13.53% | -15.30% |
GALAXYSURF | Galaxy SurfactantsSpecialty Chemicals | 7.31 kCr | 4.05 kCr | -8.12% | -19.91% | 23.84 | 1.8 | +4.96% | -2.53% |
Valuation | |
---|---|
Market Cap | 22.56 kCr |
Price/Earnings (Trailing) | 85.47 |
Price/Sales (Trailing) | 9.83 |
EV/EBITDA | 44.29 |
Price/Free Cashflow | 925.99 |
MarketCap/EBT | 67.86 |
Fundamentals | |
---|---|
Revenue (TTM) | 2.29 kCr |
Rev. Growth (Yr) | 20.04% |
Rev. Growth (Qtr) | 16.42% |
Earnings (TTM) | 263.99 Cr |
Earnings Growth (Yr) | 7.15% |
Earnings Growth (Qtr) | 42.13% |
Profitability | |
---|---|
Operating Margin | 14.49% |
EBT Margin | 14.49% |
Return on Equity | 10.69% |
Return on Assets | 5.94% |
Free Cashflow Yield | 0.11% |