Navin Fluorine share price : Navin Fluorine, a leading manufacturer of speciality fluorochemicals, witnessed a sharp fall in its share price on Friday, September 29, 2023. The stock plunged as much as 14.3 per cent to touch a 52-week low of Rs 3,734 per share on the BSE. The reason behind the sell-off was the resignation of its Managing Director Radhesh Ratnakar Welling.
MD quits for personal reasons, to be relieved by December 15
In a regulatory filing, the company informed that Welling has tendered his resignation for personal reasons and his resignation was accepted by the Board of Directors at its meeting on Thursday, September 28, 2023. He will be relieved from the services of the company effective from the close of business hours on December 15, 2023. He shall continue to serve the company to facilitate a smooth transition.
“Mr. Radhesh R. Welling has tendered his resignation as the Managing Director and a Director on the Board of the Company for personal reasons. His resignation was accepted by the Board of Directors at its Meeting today.” the filling stated.
The company also said that it will induct a senior professional to head the organization as Managing Director in due course of time. Meanwhile, Vishad P. Mafatlal, Executive Chairman, shall steer the operations of the company and will be ably assisted by the leadership team.
“Mr. Welling will be relieved from the services of the Company effective from the close of business hours on December 15, 2023. He shall continue to serve the Company to facilitate a smooth transition. The Company will induct a senior professional to head the organization as Managing Director in due course of time. Mr. Vishad P. Mafatlal, Executive Chairman, shall steer the operations of the Company and will be ably assisted by the leadership team,” the filing added.
About Navin Fluorine
Navin Fluorine is part of the Padmanabh Mafatlal Group, one of India’s oldest industrial houses. Established in 1967, it operates one of the largest integrated fluorochemicals complexes in India with manufacturing locations at Surat and Dahej in Western India and Dewas in Central India. Its R&D center named Navin Research Innovation Center (NRIC) is located in Surat, India.
“Established in 1967, NFIL operates one of the largest integrated fluorochemicals complexes in India with manufacturing locations at Surat and Dahej in Western India and Dewas in Central India. Our R&D center named Navin Research Innovation Center (NRIC) is located in Surat, India,” says the company’s website.
The company has four main strategic business units:
- Refrigeration Gases
- Inorganic Fluorides
- Speciality Fluorides
- Contract Development and Manufacturing Organisation (CDMO).
Stock performance and outlook
The stock has been under pressure for the past three months, declining around 14 per cent, according to Trendlyne data. The company reported a 10 per cent year-on-year decline in its consolidated net profit at Rs 51 crore for the quarter ended June 30, 2023. Its revenue from operations grew by 9 per cent to Rs 321 crore, while its EBITDA margin contracted by 390 basis points to 24.4 per cent.
However, some analysts remain optimistic on the company’s prospects, citing its strong order inflow in the CDMO business and its ramp-up in newly commissioned projects. Centrum Broking maintained a buy rating on the stock with a lowered target price of Rs 5,267 per share. It said that the management remained positive on all three business segments and expected HFO volumes to be recouped in Q2/Q3.
JM Financial also had a buy rating on the stock with a target price of Rs 5,665 per share. It said that the company had received approval for one molecule that will be supplied to Fermion, a Finnish pharmaceutical company, and a qualification batch for the second molecule was expected to be submitted in Q3FY24. The three-year contract signed with Fermion will commence in CY25, with revenue kicking in from FY26.
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