Navin Fluorine slips 5% after dismal Q3, brokerages cautious

Navin Fluorine slips 5% after dismal Q3, brokerages cautious

In the last 3 months, the stock has fallen nearly 11 percent on the exchanges.

Navin Fluorine was down 5.2 percent in the early trade on February 7, a day after the company reported a 26.8 percent year-on-year (YoY) decline in net profit at Rs 78 crore for the December quarter of the current financial year.

Revenue dropped 11 percent to Rs 501.8 crore. EBITDA tanked 51.3 percent to Rs 75.7 crore from the same period last year. The EBITDA margin also contracted to 15.1 percent, down from 27.7 percent.

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The board has approved a capital expenditure of Rs 288 crore for the construction of the new cGMP-4 facility at the Dewas unit.

At 9.20 am, the counter was trading at Rs 3,100 on the National Stock Exchange, down 4.9 percent from the previous close. In the last three months, the stock has fallen nearly 11 percent.

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Should you buy, hold or sell?

Global brokerage firm Jefferies has a “hold” call on the stock and has cut the target price to Rs 2,950 from Rs 3,542. The new price implies a downside of 9 percent from the previous close of Rs 3,235.

The brokerage firm said the company continues to face product deferrals on subdued demand and is encountering execution challenges.

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Analysts at DAM have a neutral recommendation on the scrip with a target price of Rs 3,145. The brokerage is of the view that the current valuations are fair but leave little room for upside.

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