Navin Fluo.Intl. (NAVINFLUOR)

FairStock Score: 58/100 — STEADY

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• High ROE of 20.79% with low leverage, debt/equity of only 0.33
• Exceptional recent momentum: sales growth 36.74% and profit growth 106.78%
• Solid financial health: Piotroski F-Score 8/9 and Altman Z-Score 5.79
• Long-term revenue CAGR of 14.78% shows durable demand in specialty chemicals
• Latest quarter net profit of ₹185 Cr on ₹892 Cr sales indicates strong operating scale

Concerns

• Extremely rich valuation: P/E 57.08, P/B 12.25, EV/EBITDA 161.35, trading far above Graham Number of ₹1126.44 and DCF value of ₹623.98
• Free cash flow of only ₹60 Cr is weak compared to reported profitability, raising earnings quality questions
• Almost no income support: dividend yield just 0.19%
• Promoter holding at 27.11% is on the lower side for an Indian listed company, worth monitoring

AI Analysis

At ₹6,278, Navin Fluorine trades like a gem already appraised by the whole market. Let me start with what I like: the business earns a return on equity of 20.79%, uses modest leverage with a debt-to-equity of 0.33, and a Piotroski score of 8 out of 9 tells me the financial health is real. The latest quarter sales of ₹892 Cr and net profit of ₹185 Cr show momentum, and profit growth of 106.78% is eye-popping. Specialty chemicals can be a good niche if you have barriers; I see signs of an operationally sound company. But Graham taught me that price is what you pay, value is what you get. At a P/E of 57.08 and price-to-book of 12.25, the market is paying for perfection. The Graham number — a conservative value benchmark — is ₹1,126.44, while the DCF intrinsic value is only ₹623.98. That means at the current price I have no margin of safety; in fact, the negative margin of safety of 455% warns me I'd be buying hope instead of arithmetic. EV/EBITDA at 161.35 is absurd unless growth continues for a long time. Also, free cash flow of only ₹60 Cr against reported net profit makes the earnings quality less convincing to me. I am not saying it is a bad business. A company with a 14.78% five-year revenue CAGR, a 58 FairStock 'Steady' score, and an Altman Z-score of 5.79 has a sound balance sheet. But a fast grower can still be a poor investment if the entry price eats the next decade of gains. I would rather wait for a better price or a clearer margin of safety. In the stock market, patience is not just a virtue; it is the price of safety. For now, I watch and wait.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer