Navin Fluorine shares surge over 6% as Jefferies reiterates 'Buy' with a target of ₹5,280

Mint

5 hours ago

Shares of Navin Fluorine International Ltd. climbed more than 6 percent on Tuesday, June 17, hitting a fresh 52-week high after Jefferies maintained a bullish stance on the specialty chemicals firm. The brokerage reiterated its 'buy' rating and set a price target of ₹ 5,280, indicating a potential upside of 17 percent from Monday's closing.
According to Jefferies, Navin Fluorine is strategically positioned to monetise the ₹ 2,000 crore capex it has invested over the past three years. These investments, the brokerage noted, are expected to convert into long-term contracts, driving sustainable earnings growth in the years ahead.
Jefferies expects Earnings Per Share (EPS) for Navin Fluorine to rise at a CAGR of 35 percent over FY25–FY27, led by improving asset turnover. The metric reflects how efficiently a company utilises its assets to generate revenue—key for a capital-intensive business like specialty chemicals.
A pipeline of new contracts in Specialty Chemicals, CDMO (Contract Development and Manufacturing Organisation) and High-Performance Products is expected to materialise in FY25. These developments, Jefferies said, would enhance growth visibility from FY28 onwards.
Navin Fluorine, according to the note, has also qualified for a new molecule with Bayer, expected to begin commercial production by Q3FY26. Another molecule is currently under final qualification. Meanwhile, Jefferies remains optimistic about the stability of R32 prices, citing US production cuts and Chinese supply constraints as key drivers.
Adding to investor optimism, Morgan Stanley upgraded Navin Fluorine to 'Equal-weight' from 'Under-weight', with a revised target of ₹ 4,160 from ₹ 3,242 earlier. The foreign brokerage acknowledged that while FY25 has seen muted demand and pricing pressure, the broader sector outlook is now improving.
Morgan Stanley also raised the valuation multiples for Navin Fluorine's contract manufacturing and advanced materials business to 25x earnings, up from 20–22x earlier. This move was backed by a strong order book, margin improvement, and robust execution, signalling a more optimistic view on the company's medium-term prospects.
Navin Fluorine's stock surged as much as 6.2 percent to hit its 52-week high of ₹ 4,792.30. From its 52-week low of ₹ 3,164 in September 2024, the stock has now rallied over 51 percent. Over the past year, shares have gained more than 27 percent, showing consistent strength despite intermittent corrections.
In June 2025 alone, the scrip is up over 9 percent, recovering from a 5.7 percent drop in May. This follows a 7.4 percent gain in April, 12 percent rally in March, a 9.3 percent fall in February, and a massive 28 percent jump in January, indicating heightened investor interest.
Overall, the recent surge in Navin Fluorine's stock price is supported by strong fundamentals and renewed confidence from top brokerages. With Jefferies and Morgan Stanley both backing the company's diversified contract pipeline, long-term growth visibility, and efficient capex utilisation, investor sentiment has turned increasingly positive.
While short-term volatility remains a factor, the company's focus on expanding its specialty and CDMO segments, coupled with favourable pricing dynamics, positions it well for sustained earnings momentum. For investors seeking exposure to high-quality specialty chemical plays, Navin Fluorine could offer both growth potential and valuation re-rating in the medium term.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.