Navin Fluorine Q4FY21 EBITDA grew 23% YoY on low base and steady performance in CRAMS and specialty chemicals. It expects specialty chemicals revenue growth in mid-teens for FY22. CRAMS will continue to grow albeit at a lower magnitude; it is sitting on projects for 25 molecules in phase 1 & 2. Gross profit margins have been range bound despite significant improvement in contribution from high value business, which is key to watch. Company remains excited about new opportunities and plans for a new innovation centre outside India. ICICI Securities have cut EPS on deconsolidation of CCVL, but raised valuation multiple to 40x (from 30x) on rising opportunities and target price to Rs 3073.

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ICICI Securities says that Navin Fluorine has guided for a mid-teens growth in specialty chemicals for FY22 largely driven by debottlenecking of few capacities; the new MPP plant should help growth only from FY23. CRAMS should see continued growth; magnitude of growth may be small, but it remains confident of sustained growth over the years as it continues to build on capabilities and relationships. Navin Fluorine is planning for an innovation centre outside India for new product development and applications.

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ICICI Securities says that Impact from rise in input cost is minimum and limited to solvents, margin compression is on inferior sales mix. Quality of business is improving from being a second to fourth supplier; it is working on molecules where either it is a primary supplier; or second supplier with first in eastern market. Navin Fluorine is not excited about the import substitution market as pricing needs to be matched to Chinese suppliers, but it is focused on innovative products for the export market. Export agrochemicals intermediate market looks strong. The company has been working on partnerships with chemical companies to have deeper understanding. It is seeking board approval for small capex in new products.