Navin Fluorine International Ltd. is one of the largest and the most respected Indian manufacturers of speciality fluorochemicals. The Company primarily focuses on fluorine chemistry – producing refrigeration gases, inorganic fluorides, specialty organo fluorines and offers Contract Research and Manufacturing Services.

Stock Details

Market Cap. (Cr.) 10133.40
Face Value 2.00
Equity (Cr.) 9.90
52 Wk. high/low 2248.50/722.35
BSE Code 532504
Book Value (Rs) 285.38
Industry Chemicals
P/E 23.52


Share Holding Pattern %


FIIs 20.39
Institutions 18.86
Non Promoter Corp. 3.79
Public & Others




Total 100.00


Key Highlights:

  • Residential Fluorine is an essential element, which is used by most people in the developed world on a daily basis. The wide range of applications of organic systems bearing fluorine atoms includes pharmaceuticals, anaesthetics, materials and air conditioning materials.

  • Company had announced Capital Expenditure of Rs. 436 Crs this year. The Capex was backed by contract ofRs. 2,800 crs with a Global Company for manufacture and supply of High-performance Product (HPP) in the fluorochemical space. The company is on schedule for the completion of the project by Q4FY22.

  • Historically, revenue from both specialty businesses (speciality chemical, CRAMS) grew at a CAGR of 18% against non-speciality business (refrigerant, inorganic fluoride) revenue growth of 9%.

  • The domestic chemical industry was pegged at US$ 163 billion in 2018,  of  which  the  specialty  chemical  industry  valued  at  9  billion  (22%).  Going  forward,  the  specialty  chemical  industry  is  expected  to  reach  US$  86.5  billion  by  FY2025  owing  to  robust  10-15%  growth  in  end-user  industries  such  as  home  &  personal  care,  packaging, polymer, adhesives.

  • Production of potassium fluoride, which is used in manufacturing covid drug Favipiravir dominated by a single company Navin Fluorine International Ltd.

  • The company’s legacy businesses that are Refrigerant Gas and Inorganic Fluorides are expected to grow at a modest pace when compared to the higher value businesses. However, the management is focusing on underpenetrated areas like exports or newproduct applications.


Company’s high performance products (HPP) deal this year worth around Rs. 2800 crore, spread over the next seven years. This translates into revenue visibility of Rs. 400 crore per year. The company has been incurring a capex of Rs. 436crore for this venture, which is likely to get commissioned by the end of FY22. The utilisation in the first year of commissioning is expected to be around 30-40%, which should inch up to optimum post two years. We expect margins for HPP to be equivalent to CRAMS segment and thus, provide decent operational visibility post FY24. The high value businesses, comprising CRAMS, specialty chemicals and High performance products will be the key growth drivers for the company, resulting in increasing contribution and margin expansion for the company. With cGMP3 plant coming on stream, we expect CRAMS revenue to grow at 33% CAGR in FY20-23E. Therefore we recommend accumulate the stock between Rs.1850- Rs.1900 for a target price of Rs.2500, valuing Navin Flourine at 24x FY23E EPS.

Business Mix:

Specialty chemicals

 Navin Fluorine’s specialty chemicals business manufactures niche fluorine-based molecules, which find downstream application in Pharma and Agrochemical and other industrial applications. Navin Fluorine forayed into the specialty chemicals business nearly two decades ago and has emerged as a prominent player.

Contract Research and Manufacturing Services (CRAMS)

The CRAMS business is the youngest business segment within the Company with operations running for nine years. The Company offers developing compounds on the back of critical fluorination processes, supplied to major global life science innovators.During the year under review, the Company started operations of cGMP3 (Certified Good Manufacturing Facility) at its Dewas site, expected to provide traction to the CRAMS business going forward. The Company increased its presence in Europe during the year under review, helping create a robust customer pipeline, utilize additional capacities and de-risk the Company’s dependence on select customers.


Navin Fluorine Manufactures and sells R-22 refrigerant gas for emissive (air conditioning) and non-emissive (as propellant in pharma) uses

Navin Fluorine embarked on its refrigerant business in 1967. Leveraging its experience of more than five decades, the Company has emerged a preferred global player in this vertical.

Inorganic fluorides

Navin Fluorine’s inorganic portfolio caters to a number of large and critical downstream sectors like steel, glass, oil & gas, abrasives, electronic products, life and crop science, among others.The Company is attractively placed; India is a prominent fluorination hub after China and an increasingly important market as global OEMs shift their strategic attention from China to alternative markets.


Revenue by geography

Domestic – 55 %

Exports – 45%

Client Base: Voltas, Samsung, Carrier, Lupin, Sun Pharma, Blue Star, BASF etc.


Particulars 202006 202003  Q-o-Q    (%) 201906 Y-o-Y(%)
Revenue from Operations 214.95 276.57 -22.3% 251.55 -14.5%
Other Income 36.18 5.69 535.9% 6.84 428.9%
Total Income 251.13 282.26 -11.0% 258.39 -2.8%
Raw Material Consumed 83.05 129.65 -35.9% 122.85 -32.4%
Stock Adjustment 3.87 -6.4 160.5% -2.6 248.8%
Purchase of Finished Goods 4.07 2.45 66.1% 0
Employee Expenses 34.64 35.13 -1.4% 30.54 13.4%
Other Expenses 35.49 46.97 -24.4% 39.65 -10.5%
Total Expenditure 161.12 207.8 -22.5% 190.44 -15.4%
PBIDT 90.01 74.45 20.9% 67.95 32.5%
Interest 0.33 0.49 -32.7% 0.51 -35.3%
PBDT 89.68 73.96 21.3% 67.44 33.0%
Depreciation 10.71 11.08 -3.3% 8.23 30.1%
PBT 78.97 62.88 25.6% 59.21 33.4%
Tax 25.99 -118.99 121.8% 18.56 40.0%
Deferred Tax 0.01 -88.21 100.0% 1.05 -99.0%
Profit After Tax 52.96 270.09 -80.4% 39.6 33.7%
EPS (in Rs.) 11.32 55.11 -79.5% 8.72 29.8%
PBIDTM (%) 41.87 26.92 55.5% 27.01 55.0%
PATM (%) 24.64 97.66 -74.8% 15.74 56.5%

Source: Capitaline Corporate Database, EWAL Research

  • Consolidated Net revenue of Navin Fluorine International in Q1FY21 stood at Rs214.9cr, which declined by 14.55% YoY from Rs251.5cr in Q1FY20.
  • Navin fluorine high-value businesses, which are primarily Specialty and CRAMS business, grew by 18% on YoY basis to Rs. 131 crore in Q1FY21. It contributed 64% of the total revenue in Q1 FY 21.
  • Legacy business that is Refrigerant Gas and Inorganic Fluorides revenue was down by 43% on a year-on-year basis to Rs. 74 crore. On QoQ basis, it was down by 31%. The performance was impacted due to weak demand from the end users due to lockdown and plant closure. Legacy business contributed to 36% of the total revenue.
  • CRAMS business grew by 35% on a year-on-year basis to INR 34 crore in Q1FY21.
  • The increased share of high-value business helped it to maintain margins in spite of business challenges and the plant shutdown.
  • EBITDA stood at Rs. 53.82cr in Q1FY21 which decreased by 11.94% YoY. For Q1FY20, it had posted EBITDA of Rs61.12cr. EBITDA margin as of Q1FY21 was at 25.04% which rose by 74bps YoY compared to the same quarter, the previous year.
  • The Company has recognized MAT Credit entitlement of 7,355.19 lakhs under section 115JAA of the Act, for which claims have been made. The Company has recomputed the tax liabilities for these years and written back excess tax provisions amounting to Rs. 14,125.37 lakhs for earlier years in Q4FY20.

Balance Sheet

Particulars 202003 201903
Share Capital 9.9 9.89
Reserves Total 1402.28 1062.56
Total Shareholders’ Funds 1412.18 1072.45
Secured Loans 1.4 4.14
Unsecured Loans 21.33 0
Total Debt 22.73 4.14
Other Liabilities 23.8 23.08
Total Liabilities 1458.71 1099.67
Gross Block 642.44 509.25
Less: Accumulated Depreciation 113.68 79.08
Net Block 528.76 430.17
Capital Work in Progress 38.85 39.33
Investments 195.4 427.44
Current Assets, Loans & Advances
Inventories 157.88 111.91
Sundry Debtors 218.49 172.73
Cash and Bank 283.75 36.99
Loans and Advances 55.93 50.77
Total Current Assets 716.05 372.4
Less : Current Liabilities and Provisions
Current Liabilities 166.97 134.28
Provisions 2.85 38.44
Total Current Liabilities 169.82 172.71
Net Current Assets 546.23 199.69
Deferred Tax Assets 61.14 15.64
Deferred Tax Liability 46.01 50.46
Net Deferred Tax 15.13 -34.82
Other Assets 134.34 37.85
Total Assets 1458.71 1099.67

Source: Capitaline Corporate Database, EWAL Research

Key Financial Ratios

Key Ratios 202003 201903 201803
Debt-Equity Ratio 0.01 0.01 0.02
Current Ratio 2.59 1.57 1.23
Interest Coverage  Ratio 129.91 271.39 224.94
OPM (%) 27.96 25.38 33.23
ROCE (%) 20.31 21.24 28.18
RONW (%) 32.31 14.34 20.07
P/E 14.83 23.59 21.16
EV/EBITDA 19.53 13.78 12.29

Source: Capitaline Corporate Database, EWAL Research


Elite Wealth Advisors Limited does/does not do business with companies covered in its research reports. Investors should be aware that the Elite Wealth Advisors Limited may/may not have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as read more

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