Nirmal Bang has upgraded its rating on Navin Fluorine to ‘buy’, raising the target price to ₹4,000 per share from the earlier ₹3,600, implying a 16% upside from the current market price of ₹3,444.00. Despite ongoing macroeconomic challenges, including competition from China, Nirmal Bang believes the company is positioned for a recovery.
The worst may not be over yet due to these macro factors, but margins are expected to improve sequentially from the current base. The company’s contract development and manufacturing organization (CDMO) business is projected to generate $100 million in revenue by FY27, providing a promising growth avenue.
Additionally, the overhang concerning the appointment of the new managing director has now been resolved, removing a key uncertainty for the company.
Disclaimer: Stock market investments are subject to market risks. The information provided in this article is for informational purposes only and should not be construed as investment advice or a recommendation. Readers are advised to seek independent financial advice before making any investment decisions. The author and the publication are not responsible for any investment losses incurred based on the information provided.
