On Tuesday, financial services firm Jefferies maintained a Hold rating on Navin Fluorine International Ltd (NFIL:IN), while raising the stock's price target to INR3,070 from INR2,950. The adjustment follows the company's recent financial performance, which included an 11% Ebitda (earnings before interest, taxes, depreciation, and amortization) beat based on Jefferies' estimates.
Navin Fluorine's positive results were driven by the specialty chemicals segment, which benefited from the introduction of new molecules and an efficient ramp-up of R-32 production capacity. The company has also successfully addressed execution issues within its High Performance Products (HPP) division.
The management of Navin Fluorine is actively working to fill the position of Managing Director, with the expectation of appointing a new leader soon. Despite this proactive approach, the visibility on future growth is not entirely clear. However, the management is optimistic about a potential recovery in the second half of the fiscal year 2025.
Jefferies' updated price target of INR3,070 reflects the firm's cautious stance on the stock, acknowledging the recent improvements while also considering the uncertainties surrounding the company's growth trajectory in the near term. The Hold rating suggests that Jefferies advises investors to maintain their current position in the stock without increasing or decreasing their holdings significantly at this time.
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