Jefferies has reiterated its ‘Buy’ rating on Navin Fluorine International Ltd (NFIL) with a target price of ₹5,280 per share, citing strong earnings visibility and growth potential stemming from recent capacity additions.
According to the brokerage, Navin Fluorine is well positioned to monetise ₹2,000 crore of capex commissioned over the past three years, aided by long-term contract wins. This, it says, should help improve asset turnover and drive a 35% CAGR in earnings per share (EPS) over FY25–27.
Jefferies also highlighted a promising pipeline of new contracts in specialty chemicals, CRAMS (contract research and manufacturing services), and high-performance products (HPP). These are expected to start materialising in FY26, giving further growth visibility extending into FY28.
Despite the recent rally, the brokerage noted that the stock has underperformed the Nifty by 23% since January 2023, indicating scope for further upside.
Disclaimer: The views expressed in this article are those of the brokerage firm and do not constitute investment advice by Business Upturn. Investors are advised to consult their financial advisors before making any investment decisions.
