Navin Fluorine International Ltd.
Printed From: The Equity Desk
Category: Investment Ideas - Creating winning portfolios!
Forum Name: Stock Synopsis
Forum Discription: A bried discussion of companies on very specific matters. Normally this is the prelude for further research as always members would be discussing quality companies with good management only
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=2264
Printed Date: 21/Apr/2025 at 11:16pm
Topic: Navin Fluorine International Ltd.
Posted By: catcall
Subject: Navin Fluorine International Ltd.
Date Posted: 29/Jul/2009 at 11:48am
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Navin Fluorine International Ltd:
This company belongs to the Mafatlal group and is located in Surat, Gujarat. The financial snapshot of the company is as below: Financial Snapshot (Rs.in millions) Mkt. Cap 2135.12 P/E * 4.04 Div 100.00 EPS (TTM) * 52.34 Book Value 226.75 Debt Equity Ratio 0.23 Return On Networth 19.77 (*Calculated on adjusted profit after extra-ordinary items) Profitability Ratios can be viewed http://economictimes.indiatimes.com/ratio.cms?companyID=16681&year=0&noOfYears=0&arc=0 - HERE Seems a buy candidate to me.. any views /opinions/recommendations on this stock are welcome  ------------- There are two times in a man's life when he should not speculate-when he can't afford it and when he can-Happy investing! |
Replies:
Posted By: smartcat
Date Posted: 30/Jul/2009 at 1:31pm
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Nice call, cat! Bought a small quantity today.
But their website is terribly designed and the PDF product files crashed my browser.
Other than that, being a fluorochemicals manufacturing company, a chunk of their revenues come from selling CERs (certified emission reduction). Any idea what's percentage of revenues/profits come from this?
And do you have any idea about how the CER kyoto protocol bit works? To increase the sales of CER units, what do they have to do? Reduce green house gases production?
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Posted By: Vivek Sukhani
Date Posted: 30/Jul/2009 at 1:47pm
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How does it compare with SRF? ------------- Jai Guru!!! |
Posted By: catcall
Date Posted: 30/Jul/2009 at 2:10pm
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Thanx smartcat,with regards to Vivek's query, though they do have a few common products, there many products categories, which do not match (e.g. This company is not into textiles, unlike SRF and and would therefore not like to compare on a one-on-one basis.
However,here is Some more info on this company: • Largest integrated fluorochemicals complex in India with hydrofluoric acid capacity of more than 20,000 tpa – provides ability to speedily address new requirements of customers. • Co has got a healthy mix of domestic and export sales. While refrigerant business is domestically doing well, export business margins are fluctuating. The products are sold under the brand name “Mafron” • Bulk chemical business is subject to some competitive pressure. However, specialty fluoride is growing at high pace (3 yr CAGR: 18%) and the co is a leading global player in BF3. • Key clients – Top five global crop protection companies like BASF and Bayer Cropscience; domestic clients includes Ranbaxy, Matrix, Aurobindo, Hetero, Orchid, Lupin • Phasing out CFC as per Montreal Protocol, will be more than compensated by HCFC business, which finds its application into air-conditioners and refrigerators. HCFC business window is open till 2040. • Consulted Mckinsey & Co to identify areas of cost reductions and profit improvement. • Income from sales of Certified Emission Reductions (CERs) will further improve the financial profile of the company. (Refer to next slide) • Healthy B/S and will become debt free in the current year; strong return ratios as well. • High dividend yield of 5% • Substantial recovery of dues from the group company, Mafatlal Industries, is expected as per the Chariman’s speech at the AGM • Valuable property at Mafatlal Centre, Nariman Point will be free of lease by 2012 Initiated the CDM project to reduce green house gas HCFC23 in June 2006, with technology partners being Ineos Fluor, U.K. • Co has received the UNFCCC approval for the project in April 2007 and the crediting has commenced from 1st May 2007. • Co is entitled to receive 2.8 mn carbon credits annually for the next 5 years till 30th April 2012 and possibly till 30th April 2017, as it is expected that the Kyoto Protocol to get extended or replaced by another protocol. • Assuming an average price of $12, the annual inflow out of carbon credits would be Rs 161 cr,translating into pre-tax Rs 159 per share. (Current Market price of carbon credits is $20) ------------- There are two times in a man's life when he should not speculate-when he can't afford it and when he can-Happy investing! |
Posted By: catcall
Date Posted: 30/Jul/2009 at 2:45pm
For this you need to apply to UNFCC and register for the same giving quantifiable and measurable reduction in Carbon emmission detailing the procedure planned for achieving the same. Once allocated, the extent of acheivement is monitored by UNFCC reps in order to get the credit, which can then be sold off... quite an elaborate process.. ------------- There are two times in a man's life when he should not speculate-when he can't afford it and when he can-Happy investing! |
Posted By: catcall
Date Posted: 07/Sep/2009 at 12:18pm
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This script has moved from sub 200 levels to Rs.258 in about a months time, PMS accumulation happening in this stock... ------------- There are two times in a man's life when he should not speculate-when he can't afford it and when he can-Happy investing! |
Posted By: neerajlulla
Date Posted: 12/Sep/2009 at 12:41pm
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how does it compare with gujarat floro chemical? ------------- buy and forget for long term |
Posted By: suru27
Date Posted: 12/Sep/2009 at 3:25am
| i dont think mafatlal group has very good reputation as mgmt level. my fin prof who was in banking industry always tell his biggest mistake in life was he sanctioned loan to mafatlal ..his method of valuating company apart from financials is he says 3 Cs..company , character & teesra i forgot ..;-).. |
Posted By: subu76
Date Posted: 14/Sep/2009 at 2:34pm
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That's true.......Navin Fluro itself is an offshoot from a BIFR case of a Mafatlal company.
Perhaps, I'm biased since i have money riding on this one.....
However, a return of 140 cr+ cash earning (even if you take 1/2 of the current CER price in MCX) for 9 years on a 300 cr enterprise value makes it very attractive.
IMO the Mafatlals will have to indulge in supreme shareholder unfriendly acts for the low market cap of 250 cr to be justified.
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Posted By: Mohan
Date Posted: 14/Sep/2009 at 6:45pm
They have been a destroyer of wealth so far. Just look at the history. a Leopard does not change its spots. ------------- Be fearful when others are greedy and be greedy when others are fearful. |
Posted By: smartcat
Date Posted: 14/Sep/2009 at 7:00pm
| These are chameleons, not leopards. And Chameleons change colours. |
Posted By: dup_subu76
Date Posted: 14/Sep/2009 at 10:12pm
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Mafatlals did not indulge in loot and scoot.
Mafatlals were blindsided by Dutta Samant and by Reliance. (Offcourse, this is no excuse)
Now they have stuck gold. It will be interesting to see how they use the cash.
My guess is that what ever they do....they will be very wary of debt.
Wonder how many folks are following the various Mafatlal scandals.
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Posted By: nkgogoi
Date Posted: 24/Oct/2010 at 12:07pm
| Does anyone have information on the CERs sale going forward? And how do we find out what was the revenue earned from the sale of carbon credits in a quarter or year. |
Posted By: Circuit
Date Posted: 24/Oct/2010 at 12:42pm
Anyone invested in this erstwhile Mafatalal group has turned into MOFAT LAL 
------------- Fundamentalists and anticipators may have difficulties with risk control because a trade keeps looking ‘better’ the more it goes against them....Ed Seykota |
Posted By: vinvestor
Date Posted: 25/Nov/2010 at 2:52pm
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Can anyone explain why the company would want to buy at 400Rs per share (via something similar to tender), when they are trading at 270Rs on the open market? The quantity they want to buy is about 3.5 lakh shares, which they can easily buy if they have patience. It will probably take around 3 months...but they can still buy the 3.5 lakh shares. They can buy more number of shares for that money 3.5lakh*400 today at 270Rs. |
Posted By: hit2710
Date Posted: 25/Nov/2010 at 4:21pm
It means Rs 400 is the maximum price at which buyback will be done. They usually give the upper limit because buyback extends upto six months from the date of starting buyback and therefore the upper price in case the share price goes up. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: hit2710
Date Posted: 25/Nov/2010 at 4:24pm
It means Rs 400 is the maximum price at which buyback will be done. They usually give the upper limit because buyback extends upto six months from the date of starting buyback and therefore the upper price in case the share price goes up. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: vinvestor
Date Posted: 25/Nov/2010 at 9:01am
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http://www.bseindia.com/stockinfo/anndet.aspx?newsid=e38f1e79-33bf-4249-bd82-6705866bc75b hit2710: This is not done the regular buy back way. They are paying 400 Rs per share. Incase of over delivery of shares, they will do it on a proportionate basis (just the way IPO's are over subscribed). |
Posted By: subu76
Date Posted: 13/Aug/2011 at 10:10am
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When i wanted to buy Navin desperately about 2 years back in my quest to buy a hidden gem Ted folks passionately argued against this company which helped me junk the idea.... I'm thankful to you guys for that Mohan, Smartcap and Curcuit Sirs for helping me avoid this one |
Posted By: njconsultancy
Date Posted: 07/Nov/2011 at 7:42pm
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What is the future of navin? i heard that CER will be on review in 2013 and its also going to provide some gas to Nuclear Plant in 2013.
Any Idea???
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Posted By: gaurav12123
Date Posted: 27/May/2012 at 3:30pm
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Navin Fluorine International Ltd has informed BSE that the Board of Directors of the Company at its meeting held on April 30, 2012, inter alia, has recommended a final dividend of Rs. 6.50/- per share on 97,61,097 equity shares of nominal value of Rs. 10/- each, aggregating to Rs. 634.47 lacs (corresponding quarter previous year; Rs. 829.69 lacs on 97,61,097 equity shares of nominal value of Rs. 10/- each) and a special dividend of Rs. 60/- per share aggregating to Rs. 5,856.66 lacs on 97,61,097 equity shares of nominal value of Rs. 10/- each for the year ended March 31, 2012. ------------- When I Trade i Try To Earn Infinity. |
Posted By: gaurav12123
Date Posted: 27/May/2012 at 3:50pm
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annual Results in Financial Year 2011-2012 http://www.nfil.in/pdf/NFIL_2011_12.pdf ------------- When I Trade i Try To Earn Infinity. |
Posted By: ameydesai
Date Posted: 12/Jun/2012 at 11:02am
------------- Arise, Awake and Stop Not till the Goal is reached |
Posted By: subu76
Date Posted: 26/Jun/2012 at 3:29pm
| The arguments were mainly around management if I remember correctly |