#Refrigerant #gas manufacturer

Hello Friends, today I’m going to discuss about a chemical company which has a strong presence and products across the segments.

In China due to Environmental issues lots of chemical companies are facing production problems and creates product shortage in market also. This problem will continue I think and one more thing to remember that in China Labour wages also at higher end and increasing consistently.

Looking to above problem India will look this problem as an Opportunity and will attract multinational companies to start production in India. Some of the multinational companies already has a significant presence in India.

Now, let’s talk about that company I’m talking about.

Company name is Navin Fluorine International Limited backed by Mafatlal Group. Which has presence in textile, information technology, engineering, Realty and Chemical.

Navin Fluorine was started in 1967 at Surat, Gujarat. It was the first integrated fluorochemical complex to product HF, refrigerant gases & a range of inorganic fluorides.

It has four products

  1. Refrigerants
  2. Inorganic Compounds
  3. Specialty Fluorochemical
  4. CRAMS

In Refrigerants company is pioneering company was started to manufacturing refrigerants. Company sells its Refrigerants as a “MAFRON” brand which is a well known name in India as well as in the World also.

Its uses are for Mobile Air Conditioning, Industrial Refrigeration, Domestic Refrigeration, Window & Split Air Conditioners, Chillers, Commercial and Industrial Refrigeration Units, Fluoropolymer Resins etc.

In Specialty Fluorochemical Business it caters Indian and Global Life Sciences Companies and Agro Chemical Companies as well.

Fluoro Intermediates are having multiple applications such as in Pharmaceuticals, Agri Crop protection, Fragrances & Hydrocarbon.

In CRAMS means Contract Research and Manufacturing Services has over 27000 Compounds and more than 3000 IP protected Compounds developed through Manchester Organics Ltd. (Actually Manchester Organics Ltd is a subsidiary company of Navin Fluorine).

Company is strongly betting on Agro Chemicals also.

#Let’s check Balance sheet How’s the Balance?

Navin Fluorine
Mar ’19
Sources Of Funds
Total Share Capital 9.89
Equity Share Capital 9.89
Share Application Money 0.00
Preference Share Capital 0.00
Reserves 1,049.32
Revaluation Reserves 0.00
Networth 1,059.21
Secured Loans 0.00
Unsecured Loans 0.00
Total Debt 0.00
Total Liabilities 1,059.21

Let’s check last 2 fiscal’s performances

FY Revenue (in Cr) Profit (in Cr) EPS (in Rs.)
2017-18 912.69 182.46 36.5
2018-19 995.94 147.45 30.17

Due to Decline in CRMS profit and revenue was not upto the mark which we had predicted but repeat orders from current customers is continue and I hope CRMS will also get boosted after FY20.

Stock can reach to 900 in a year.

So I would suggest don’t buy at this price but wait for a correction will happen soon then buy in staggered manner.

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