Mehabe score: 6 G Factor: 3 Piotski Score: 6 The stock has a rating OBSERVE & HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 3 and Piotski score of 6.
Description
Navin Fluorine International is one of the largest integrated fluorochemicals complex in India. The Company primarily focuses on fluorine chemistry – producing refrigeration gases, inorganic fluorides, specialty organofluorines and offers Contract Research and Manufacturing Services.(Source : 202003 Annual Report Page No: 109)Site:NAVINFLUORMain Symbol:NAVINFLUOR
Stock trades at 3820.0, above its 50dma 3323.43. It also trades above its 200dma 2743.03. The stock remains bullish on techicals
The 52 week high is at 3895.00 and the 52week low is at 1625.10
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
– has been maintaining a healthy dividend payout of 20.11%
Weakness
– Stock is trading at 11.58 times its book value
-The company has delivered a poor sales growth of 11.65% over past five years.
Competition
– The industry trades at a mean P/E of 29.7x. Pidilite Inds. trades at the industry’s max P/E of 101.84x. NAVINFLUOR trades at a P/E of 76.5x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 8.0. NAVINFLUOR has a G-Factor of 3 and Piotski scoreof 6.
– Average 1 month return for industry is 9.2%. The max 1- month return was given by Navin Fluo.Intl.: a return of 19.92 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 336.0 cr compared to Rs 277.0 cr for period ended Mar 2020, a rise of 21.3%
Operating Profits reported at Rs 84.0 cr for period ended Mar 2021 vis-vis 69.0 for period ended Mar 2020 .
Operating Margins expanded 9.0 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 15.11 compared to Rs 11.9 for previous quarter ended Dec 2020 and Rs 55.11 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1179.0 cr for period ended Mar 2021 vis-vis sales of Rs 1062.0 cr for the period ended Mar 2020, a growth of 9.9%. The 3 year sales cagr stood at 8.9%.
Operating margins expanded to 26.0% for period ended Mar 2021 vis-vis 25.0% for period ended Mar 2020, expansion of 100.0 bps.
Net Profit reported at Rs 258.0 cr for period ended Mar 2021 vis-vis sales of Rs 409.0 cr for the period ended Mar 2020, falling 58.5%.
Company recorded a healthy Net Profit CAGR of 12.7% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 237.0 cr for period ended Mar 2021 vis-vis Rs 157.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was 16.0% compared to 21.0% over the last 3 Years. – The stock has given a return of 123% on a 1 Year basis vis-vis a return of 81% over the last 3 Years. – The compounded sales growth on a TTM bassis is 11% vis-vis a compounded sales growth of 9% over the last 3 Years. – The compounded profit growth on a TTM basis is -39% vis-vis a compounded profit growth of 11% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 25.1% vis-vis 24.53% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 28.86% vis-vis 28.08% for Dec 2020
Conclusion
– has reduced debt.
– is almost debt free.
– has been maintaining a healthy dividend payout of 20.11% – Stock is trading at 11.58 times its book value
-The company has delivered a poor sales growth of 11.65% over past five years.
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 3323.43 and is trading at 3820.0 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
