Navin Fluorine (NFIL) has proved to be a millionaire stock in the last 5 years and 10 years. While the stock has given 670 per cent return in the last 5 years, in 10 years the return of the stock has been 58 times or about 5690 per cent.
Crorepati Stocks: For the past few quarters, many stocks in the chemical sector have proved to be a multibagger for investors. One of these, Navin Fluorine (NFIL), has proved to be a millionaire stock in the last 5 years and 10 years. While the stock has given a return of 670 percent in the last 5 years, the return of the stock has been 58 times or about 5690 percent in 10 years. On 3 February 2012, where the stock was at a price of Rs 73, now it is trading at Rs 4228. At present, the brokerage house is now seeing the valuation of the stock expensive. At the same time, some other factors can affect the growth. Brokerage house ICICI Securities has given a sell advice in the stock. Although the target has already been increased.
How much loss is expected from the current price
Brokerage house ICICI Securities says that the December quarter results of Navin Fluorine (NFIL) have been in line with estimates. Margins have improved due to legacy business. However, there has been a loss in CRAMS revenue due to delay in purchase order. Specialty mix is turning towards agro chemicals. However, the company is focusing on better opportunities in the domestic pharma business. The company plans to increase the capacity going forward. 1000 crore capex can be seen in FY23. The company’s focus is on future growth. Although the brokerage house has increased the target for the stock from Rs 3100 to Rs 3550, but instead of reducing the rating, it has been changed to SELL. The brokerage house believes that the valuation of the stock is expensive and there may be weakness in it going forward.
Increasing competition will also have disadvantages
According to the report, the company’s gross margin is stable and it has increased by 170bps on a yearly basis to 55.9 percent. Stability is a positive factor in margins even with lower CRAMS. NFIL has also increased the prices, although it has been very selective. The benefit of all this will be available in the next quarters. The EBITDA growth stood at 19 on a yearly basis and stood at Rs 98.10 crore. Net profit grew by 17.8 per cent year-on-year to Rs 69.20 crore.
But the brokerage house says that increasing competition in the chemical sector is also suffering. For this reason, apart from increasing the capacity, the company’s focus is also on new products. The company has also focused on agro chemical products. Although the company is on the leading position in the chemical sector, so it is expected to get the advantage of this competition.
(Disclaimer: Stock investment advice is given by the brokerage house. These are not the personal views of The Financial Express. Markets are risky, so take expert opinion before investing.)
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