Navin Fluorine shares get their third bullish call in three days after Avendus Sparks says 'buy'

Shares of Navin Fluorine International Ltd. will be in focus on Wednesday, June 18, after brokerage firm Avendus Spark initiated coverage on the chemicals company.

Avendus Spark initiated coverage on Navin Fluorine with a ‘Buy’ recommendation and a price target of ₹4,800, which implies a potential upside of another 3% from Tuesday’s closing levels.

The brokerage wrote in its note that Navin Fluorine’s transition from a capital expenditure phase to a cash flow-driven, asset-heavy model is yielding positive results, with key projects entering the ramp-up stage and driving an improvement in Return on Invested Capital (RoIC).
Asset turnover is expected to increase from 0.9 times in financial year 2025 to 1.2 times in financial year 2027, supporting RoIC growth from 13% to 18%.
Navin Fluorine is positioned as a preferred partner for global innovators.

With the commissioning of larger current Good Manufacturing Practice (cGMP) facilities capable of handling late-stage and mature molecules, the Contract Development and Manufacturing Organization (CDMO) business is expected to achieve greater stability and reduced earnings volatility.

Navin Fluorine has received its third positive note in three days. Earlier, Jefferies maintained its ‘Buy’ recommendation on the stock with a price target of ₹5,280, saying the company is well positioned to monetise its ₹2,000 crore capex, commissioned over the past three years, by entering into long-term contracts.

Morgan Stanley also recently upgraded the stock to ‘Equalweight’ from its earlier rating of ‘Underweight’, citing the company’s more diversified exposure in contract manufacturing and the advanced materials segment.

Out of the 31 analysts that have coverage on Navin Fluorine, 20 of them have a ‘Buy’ rating on the stock, seven have a ‘Hold’ rating, while the other four have a ‘Sell’ recommendation.

Shares of Navin Fluorine settled 3.67% higher on Tuesday at ₹4,679. The stock has increased its gains to 43% so far this year.