Multibagger Chemical Stock Declares 250% Dividend, Second Quarter Sales Rise 24%

With a market valuation of 21,921.06 Cr, Navin Fluorine International Limited is a large capitalization company engaged in the chemical industry. Navin Fluorine International Ltd (NFIL) is one of India’s largest and most reputable manufacturers of specialty fluorinated chemicals. With production facilities in Surat and Dahej in Western India, as well as Dewas in Central India, the company operates one of the largest integrated fluorochemical systems in the country. Refrigerations, Inorganic Fluoride, Specialty Fluoride Intermediates and Contract Development and Manufacturing Organization (CDMO) are among the business divisions of the company. The company announced a 250% interim dividend with its Q2FY23 results.

The company said in a filing that “the Board of Directors, at its meeting held today, declared an interim dividend of 5/- (INR Five only) per share of the par value of 2/- each for the 2022-2023 financial year. In accordance with Regulation 42 of the SEBI (Registration and Disclosure Requirements) Regulations of 2015, Friday, November 4, 2022 has been set as the record date for determining the eligibility of Members for payment of the aforementioned interim dividend.

In view of the dividend payment, the company said the record date was set to “verify members’ eligibility for payment of the interim dividend of 5/- per share (250% of the nominal value) for the financial year 2022-2023, as declared by the board of directors during its meeting held today, i.e. October 19, 2022. The interim dividend will be paid effective Thursday, November 17, 2022.”

On a consolidated basis, the company recorded net operating income of 419.2 at T2FY23 compared to 339.0 Cr in Q2FY22 representing 24% YoY growth and net sales increased 5% QoQ from 397.5 Cr at Q1 FY23. Company delivered 11% year-over-year EBITDA growth 84.2 Cr at T2FY22 at 93.8 Cr at Q2FY23 but the same dropped -5% QoQ from 99.1 Cr at Q1 FY23. The company reported profit before tax (PBT) of 83.1 Cr at T2FY23 compared to 82.4 Cr at T2FY22. However, the company reported a -9% year-over-year drop in net profit from 63.2 Cr at T2FY22 at 57.8 Cr in Q2FY23 and net profit fell -22% QoQ vs. 74.5 Cr recorded in Q1 FY23.

On an individual basis, the company reported net income from 366.4 Cr at T2FY23 compared to 324.4 Cr in Q2FY22, representing 13% YoY growth, but sales fell -5% QoQ from 386.8 Cr at Q1 FY23. The company delivered 8% year-over-year EBITDA growth from 83.6 Cr at T2FY22 at 90.0 Cr at Q2FY23 but the same dropped -10% QoQ from 99.9 Cr in Q1 FY23, as the company reported pre-tax profit (PBT) of 86.3 Cr in the quarter ended September 2022 compared to 80.8 Cr recorded in the same quarter last year. The company recorded 3% annual growth in net income from 62.1 Cr at T2FY22 at 64.1 Cr in Q2FY23, but net profit fell -19% QoQ vs. 79.0 Cr recorded in Q1 FY23.

Navin Fluorine International Limited stated in its Investor Presentation Report that in the first half of FY23 it implemented a new organizational structure – 3 business units led by 3 operational CEOs with full P&L responsibilities, NFASL began commercial production of hydrofluoroolefins after successful delivery of commercial trials and specialty business continues to record strong revenue growth; recorded the highest quarterly sales ever in Q2FY23.

Shares of Navin Fluorine International Limited closed Friday at 4,431.00 each, up 0.28% from the previous close of 4,418.75. In its last trading session, the stock recorded total volume of 329,581 shares compared to the 20-day average volume of 224,123 shares. The stock has produced a multibagger return of 503.31% over the past five years and a multibagger return of 474.14% over the past three years. The stock has appreciated 30.76% over the past year and is up 4.93% year-to-date (YTD) in 2022. For the quarter ended September or Q2FY23, the company reported developer ownership of 29.40%, FII ownership of 20.07%, DII ownership of 22.67% and public ownership of 27.86%.

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