Navin Fluorine International Limited Upgraded to 'Hold' Rating by MarketsMOJO

Navin Fluorine International Limited, a midcap company in the chemicals industry, has recently been upgraded to a 'Hold' rating by MarketsMOJO on August 21, 2024. This upgrade is based on the company's high management efficiency, with a ROCE (Return on Capital Employed) of 20.59%. Additionally, the company has a low Debt to Equity ratio of 0.07 times, indicating a strong financial position.
Furthermore, Navin Fluorine has shown healthy long-term growth, with an annual growth rate of 16.17% in Net Sales and 26.47% in Operating Profit. The stock is also currently in a Mildly Bullish range, with technical trends improving from Sideways on August 21, 2024. The RSI and KST technical factors are also Bullish, indicating positive momentum for the stock.

One of the key factors contributing to the 'Hold' rating is the high institutional holdings at 45.43%. These investors have better resources and capabilities to analyze the fundamentals of companies, making their stake increase by 1.25% over the previous quarter.

However, the company has declared negative results for the last 5 consecutive quarters, with PBT LESS OI(Q) at Rs 58.04 crore, falling by -21.00%. The ROCE (HY) is also at its lowest at 9.54%, and the DEBT-EQUITY RATIO (HY) is at its highest at 0.57 times. With a ROCE of 9.3, the company's valuation is considered Very Expensive, with a 5.4 Enterprise value to Capital Employed.

Despite the recent upgrade, the stock is currently trading at a discount compared to its average historical valuations. Over the past year, while the stock has generated a return of -25.35%, its profits have fallen by -39.7%. This below-par performance is not limited to the short term, as the stock has also underperformed BSE 500 in the last 3 years, 1 year, and 3 months.

In conclusion, while Navin Fluorine International Limited has shown strong management efficiency and healthy long-term growth, its recent negative results and expensive valuation make it a 'Hold' for now. Investors should keep an eye on the company's performance in the coming quarters to make informed decisions.