In its research report dated October 5, 2023, Motilal Oswal has upheld a Neutral rating on Navin Fluorine International and set a target price of Rs 4245.
The report highlights a recent development within the company: Mr. Radhesh Welling, the Managing Director, has tendered his resignation due to personal reasons. The effective date of his resignation is set for December 15, 2023, and he will continue to serve the company until then to ensure a seamless transition. Navin Fluorine International is actively searching for an external candidate to fill the role of Mr. Welling. In the interim, Mr. Vishad P. Mafatlal will oversee the company’s operations. The company anticipates that this change in leadership will not have a significant impact on its relationships with customers or its ongoing and future capital expenditure plans.
Regarding the company’s valuation, the stock is currently trading at 31.5x FY25E EPS of INR 121. Motilal Oswal values the company at 35x FY25E EPS, leading to a target price of INR 4,245. The research report maintains a Neutral rating on the stock, primarily due to perceived valuation levels and limited potential for further upside.
Investors are advised to consider this report when evaluating Navin Fluorine International as an investment option, taking into account the factors mentioned, including the leadership transition and the company’s valuation.