Navin Fluorine International Limited Downgraded to 'Sell' by MarketsMOJO

Navin Fluorine International Limited, a midcap company in the chemicals industry, has recently been downgraded to a 'Sell' by MarketsMOJO on November 12, 2024. This decision was based on the company's flat results in September 2024, with a -30.21% growth in PAT (9M) at Rs 180.39 crore and a record low ROCE (HY) at 8.67%.
Furthermore, with a ROCE of 8.4, the company's valuation is considered to be very expensive, with a 5.1 Enterprise value to Capital Employed. This is also reflected in the stock's current trading price, which is at a discount compared to its average historical valuations. In the past year, the stock has generated a return of -8.85%, while its profits have fallen by -40.7%.

The company's performance has been below par in both the long term and near term. In addition to the negative return in the past year, the stock has also underperformed the BSE 500 index in the last 3 years, 1 year, and 3 months.

However, there are some positive factors to consider. Navin Fluorine International Limited has a high management efficiency, with a ROCE of 20.59%. The company also has a low Debt to Equity ratio (avg) at 0.07 times, indicating a healthy financial position. In terms of long term growth, the company has shown promising results with an annual growth rate of 16.23% in Net Sales and 26.47% in Operating profit.

From a technical standpoint, the stock's trend is currently sideways, indicating no clear price momentum. The technical trend has also deteriorated from Mildly Bullish on November 12, 2024, and has generated a return of -4.33% since then.

It is worth noting that Navin Fluorine International Limited has a high institutional holding at 45.43%. These investors have better capabilities and resources to analyze the fundamentals of companies, making their stake increase by 1.25% over the previous quarter.

In conclusion, while Navin Fluorine International Limited has some positive aspects, the recent downgrade to 'Sell' by MarketsMOJO suggests that investors should approach the stock with caution. The company's flat results, expensive valuation, and below par performance make it a risky investment option.