FunTech Happy (L)earning:
Multi Bagger Stock Name: Navin Fluorine International Ltd (NFIL)
Company History:
Navin Fluorine International Ltd (NFIL) is one of the largest and the most respected Indian manufacturers of speciality fluorochemicals. It belongs to the Padmanabh Mafatlal Group – one of India’s oldest industrial houses. Established in 1967, NFIL operates one of the largest integrated fluorochemicals complexes in India with manufacturing locations at Surat and Dahej in Western India and Dewas in Central India. Our R&D centre named as Navin Research Innovation Center (NRIC) is located at Surat, India.
Four main strategic business units:
Refrigeration Gases
Inorganic Fluorides
Speciality Fluorides
Contract Research And Manufacturing Services (CRAMS)
Its facility at Surat specializes in manufacture of refrigerants, various organic and inorganic fluorides. The site is equipped with all technical capabilities to handle and process multiple complex chemistries at various scales of operations.
We are one of the few companies in fluorination chemistry with the experience, capability and expertise in scale up from research to pilot and manufacturing. The NRIC collaborates with customers with the objective of developing new products, processes and technologies in the most cost effective and environmentally compliant manner.
NFIL is making further investments in strengthening its manufacturing capabilities by building a world class cGMP multi-purpose plant to supply and service multi ton requirements of customers.
It produce over 60 fluorinated products for domestic and international customers. More than 40% of our products are exported to North America, Europe, Middle East and Asia Pacific regions.
Navin Fluorine emerged as a preferred source and a partner of choice for a variety of fluorochemicals globally. Our clientele includes top-tier life sciences, crop protection, petro chemical and speciality chemical companies with several of them being fortune 500.
It has quality system accreditation with ISO 9001, environment management system accreditation with ISO 14001 and safety management accreditation with an OHSAS-18001.
Ratio Analysis:
Market Cap.: ₹ 3,441.79 Cr.
Current Price: ₹ 698.15
Dividend Yield: 0.53%
Average return on equity 5Years: 11.29%
Debt to equity: 0.00
Dividend Payout Ratio: 13.51%
Sales growth: 17.84%
Profit growth 5Years: -14.22%
Average return on capital employed 5Years: 22.27%
Profit growth: 38.00%
Return on equity: 15.94%
Sales growth 3Years: 16.01%
Sales growth 5Years: -0.07%
YOY Quarterly sales growth: 37.32%
YOY Quarterly profit growth: 12.51%
Interest Coverage: ₹ 563.82
Average return on equity 3Years: 12.91%
Profit growth 3Years: 37.54%
Sales growth 10Years: 10.39%
Sales growth 7Years: 7.27%
Conclusion:
1) Navin has CRAMS business model where pharma giants outsource their projects to India due to low cost skilled worker.
2) Technology transfer & joint process development agreement with Honeywell in next generation refrigerant.
3) Has entered Joint venture with Piramal enterprises limited & supplier of fluorine to Piramal group.
4) Fluorine is used in whitening agent of tooth paste, in medicines we consume, agrochemicals, automotive & aerospace industries.
5) It operates in a very niche industry where high quality & safety measures to be followed which prevents many player entering into the sector.
Based on Technical Analysis also company has full capability to prove as Multi bagger one.
BUY at Rs 680 to 690
Target for 1 Year: Rs 850 (25% Return)
Target for 5 Year: Rs 1,360 (100% Return)
Target for 10 Year: Rs 2,040 (200% Return)
Disclaimer:
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