Navin Fluorine International reports better-than-estimated Q4 nos; What should investors do?

Navin Fluorine International Ltd share price: Shares of Navin Fluorine International inched higher in Wednesday's (May 8) morning trade, after the company reported better-than-estimated Q4FY24 numbers on Tuesday after market hours. 

At around 9:45 a.m., shares of Navin Fluorine International traded 1.21 per cent or Rs 41 higher at Rs 3,416.45 apiece. The market capitalisation of the company at around the same time stood at Rs 16,938.43 crore.

The specialty chemicals company in the fourth quarter reported a 49 per cent decline in consolidated net profit at Rs 70 crore against Rs 136 crore a year ago. Zee Business Research expected the profit after tax (PAT) for Q4FY24 at Rs 50 crore.

Its consolidated revenue for the fourth quarter stood at Rs 602 crore compared to Rs 697 crore year-on-year (YoY). The research desk had estimated the revenue for the quarter that ended March 31, 2024, at Rs 540 crore.

The earnings before interest, tax, depreciation, and amortisation (EBITDA) stood at Rs 110 crore against Rs 202 crore which implies a 45 per cent decline YoY. However, EBITDA was better than estimated at Rs 95 crore.

The margins of the company for the quarter ended March 31 stood at 18.3 per cent against 28.9 per cent YoY. 

As per the company's filing, an agro specialty capex–chemical charge has been initiated. Firm orders for dedicated capacity for FY25 are in place.

Further, a capex of Rs 30 crore towards the development of a completely new capability in Surat is on track and is expected to generate revenue from FY25.

What should investors do? 

Citi maintained a 'buy' on the stock and raised the target to Rs 3,900 from Rs 3,750 apiece. 

Moreover, Jefferies continued with 'hold' and raised the target to Rs 3,070 from Rs 2,950 apiece. 

Navin Fluorine International share price: Past performance 

In a year, Navin Fluorine International shares have lost over 29 per cent against Nifty50's rise of over 22 per cent. 

Catch all the updates of the May 8 session on Dalal Street here. For all other news related to business, politics, tech and auto, visit Zeebiz.com.

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