This chemical stock jumps 77% in 2025 so far; here’s why JM Financial sees more upside
At last check on Friday, shares of the chemical company were trading 1.01 per cent higher at Rs 5795 on BSE over its previous close of Rs 5737.15 apiece.
- Nov 28, 2025,
- Updated Nov 28, 2025 12:00 PM IST
Brokerage firm JM Financial has maintained its bullish stance on specialty chemicals player Navin Fluorine International. In its latest company update, the domestic brokerage rolled forward its valuation estimates, setting a revised target price of Rs 6,685 per share, raised from the earlier target of Rs 6,380. This revision implies a potential upside of nearly 16 per cent from the market price referenced in the report.
At last check on Friday, shares of Navin Fluorine were trading 1.01 per cent higher at Rs 5795 on BSE over its previous close of Rs 5737.15 apiece. The stock has gained nearly 77 per cent in 2025 so far and 35 per cent in the last six months.
JM Financial believes the company is well-positioned for sustained outperformance and expects it to surprise the Street positively regarding margin expansion over the next year. This optimism is anchored on a projected jump in CDMO (Contract Development and Manufacturing Organization) sales and a ramp-up in other contracted sales, specifically in agro-intermediates and data center coolants.
A significant buffer for the company’s earnings comes from the refrigerant gas segment. JM Financial noted that the current pricing environment in key markets like China and India remains ‘buoyant’ at USD 7-8 per kg for HFC-32. Even in a conservative scenario where prices might correct to USD 3.4-3.8 per kg, the brokerage asserts that Navin Fluorine is capable of delivering on the expectation of Rs 1,300 crore by FY28E. Consequently, if prices do not fall to those lower levels, there remains an "upside risk of at least ~8-10 per cent" on consensus expectations.
Strategically, the analysts highlight a long-term value creation opportunity as the company aims to climb the value chain. Navin Fluorine is looking to transition from its current focus on pharma intermediates into the pharma API CDMO space. The report notes that the current pipeline is already strong, catering to patented drugs for respiratory and cardiovascular therapies. The brokerage pointed out that any new contract announcement for the cGMP4 phase II capex could be a key positive trigger for the stock.
On the financial front, the projections are robust. Factoring in healthy volumes from refrigerant gas and the CDMO business, JM Financial estimates the company will register a sales, EBITDA, and EPS CAGR of 26 per cent, 35 per cent, and 43 per cent respectively over FY25-28E. Driven by a higher contribution from contracted sales, the brokerage believes the company could "sustain ~30 per cent EBITDA margin in FY27-28E."
Brokerage firm JM Financial has maintained its bullish stance on specialty chemicals player Navin Fluorine International. In its latest company update, the domestic brokerage rolled forward its valuation estimates, setting a revised target price of Rs 6,685 per share, raised from the earlier target of Rs 6,380. This revision implies a potential upside of nearly 16 per cent from the market price referenced in the report.
At last check on Friday, shares of Navin Fluorine were trading 1.01 per cent higher at Rs 5795 on BSE over its previous close of Rs 5737.15 apiece. The stock has gained nearly 77 per cent in 2025 so far and 35 per cent in the last six months.
JM Financial believes the company is well-positioned for sustained outperformance and expects it to surprise the Street positively regarding margin expansion over the next year. This optimism is anchored on a projected jump in CDMO (Contract Development and Manufacturing Organization) sales and a ramp-up in other contracted sales, specifically in agro-intermediates and data center coolants.
A significant buffer for the company’s earnings comes from the refrigerant gas segment. JM Financial noted that the current pricing environment in key markets like China and India remains ‘buoyant’ at USD 7-8 per kg for HFC-32. Even in a conservative scenario where prices might correct to USD 3.4-3.8 per kg, the brokerage asserts that Navin Fluorine is capable of delivering on the expectation of Rs 1,300 crore by FY28E. Consequently, if prices do not fall to those lower levels, there remains an "upside risk of at least ~8-10 per cent" on consensus expectations.
Strategically, the analysts highlight a long-term value creation opportunity as the company aims to climb the value chain. Navin Fluorine is looking to transition from its current focus on pharma intermediates into the pharma API CDMO space. The report notes that the current pipeline is already strong, catering to patented drugs for respiratory and cardiovascular therapies. The brokerage pointed out that any new contract announcement for the cGMP4 phase II capex could be a key positive trigger for the stock.
On the financial front, the projections are robust. Factoring in healthy volumes from refrigerant gas and the CDMO business, JM Financial estimates the company will register a sales, EBITDA, and EPS CAGR of 26 per cent, 35 per cent, and 43 per cent respectively over FY25-28E. Driven by a higher contribution from contracted sales, the brokerage believes the company could "sustain ~30 per cent EBITDA margin in FY27-28E."