Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Markets / Stock Markets/  This specialty chemical stock down 20% in 3 weeks. Jefferies says 'Buy'
BackBack

This specialty chemical stock down 20% in 3 weeks. Jefferies says 'Buy'

Jefferies has initiated coverage on the specialty chemical stock with a Buy recommendation, owing to accelerating earnings and optionality from new product wins

Navin Fluorine shares have surged over 30% this yearPremium
Navin Fluorine shares have surged over 30% this year

Shares of specialty chemical maker Navin Fluorine International Limited (NFIL) are up over 30% this year (year-to-date or YTD) so far, slipping from its highs touched earlier this year. In a month's period, the stock has declined around 12%. Jefferies has initiated coverage on Navin Fluorine with a Buy recommendation, owing to accelerating earnings and optionality from new product wins.

NFIL with its technical expertise in fluorine, accelerated capex program, augmented capabilities to handle growth and strong balance sheet is well positioned to capture the growth opportunity in pharma/agrochem CDMO, in Jefferies' view.

“c60% exposure to pharma in high value business makes it less exposed to the agrochem cycle. New product breakthroughs (like HPP) have disproportionate positive impact on growth given its smaller revenue base. Accelerating earnings growth and optionality from new product wins drive our Buy rating," it said in a note. The brokerage has a buy rating on the specialty chemical stock with a target price of 3,840 per share.

Chinese fluorochem majors have witnessed revenue decline over CY18-20 while Indian players have witnessed strong growth suggesting market share shift to India as innovators look beyond China.

Jefferies stated that its interaction with innovators suggested they evaluate prospective partners on tech capability, quality and reliability of production process, cost, size, potential to scale and safety. To this, “we add balance sheet strength and good capital allocation. Navin Fluorine (NFIL) and SRF - with recognized expertise in fluorochemistry - tick most of the boxes, in our view."

Jefferies added that SRF's technical expertise in fluorine chemistry, widening portfolio of specialty chem molecules, aggressive capex with room to improve utilization in existing facilities and a strong balance sheet position it well for growth, in its view. It has a price target of 1,890 on SRF.

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

 

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 03 Nov 2021, 12:30 PM IST
Next Story footLogo
Recommended For You
GENIE RECOMMENDS

Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!

Let’s get started
Switch to the Mint app for fast and personalized news - Get App

Chat with MintGenie