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Report By: Surbhi Lohia – [email protected]

mailto:[email protected]

Source: Company, www.dynamiclevels.com

Navin Flourine International Ltd (NFIL) - Scaling up through Innovation

Company Overview and Stock price ……………………………………….……3

Product Overview……………………………………………………………….….…..4

Key Highlights………………………….…………….……………………….….…..…6

Chemical & Petrochemicals Industry Outlook………….………….….…….7

Company Financials………………………………..…………….………….….….. 9

Peer Comparison…………….…………………………………………….……..…..13

Shareholding Pattern…………………………………………..……………....…. 14

Company’s Strength &Future Outlook…………….……..……………....….16

Investment Rationale………………………………………...………….......…....17


Company’s Overview and Stock Price

Navin Fluorine International Ltd (NFIL) is one of the largest and the most respected Indian manufacturers of speciality fluorochemicals. It belongs to the Arvind Mafatlal Group – one of India’s oldest industrial houses. Established in 1967, NFIL operates one of the largest integrated fluorochemicals complexes in India with manufacturing locations at Surat and Dahej in Western India and Dewas in Central India.

NFIL has 4 main strategic business units:

Refrigeration Gases

Inorganic Fluorides

Speciality Fluorides

Contract Research And Manufacturing Services (CRAMS)

The Company posted exceptional Q4 result in FY 16. The company's Q4 (Jan-March) net profit was up 90 % at Rs 31.5 cr against Rs 16.6 cr YoY and up 132% QoQ from 13.59 cr to 31.50 cr. The total income went up 14.9 % at Rs 679.68 cr vs Rs 591.51 cr YoY. The EBIDTA was up 96 % at Rs 35.9 cr, YoY and increased by 56 %, QoQ. The company's consolidated FY16 EPS was at Rs 85.4 vs Rs 55.87 up by 54.24%, YoY. Chart Hypothesis: Above is the weekly price chart of NFIL for last 1 yr, in which we can see that it made a new high of 2078 recently and one should wait for correction to enter this stock at 1600 where it was consolidating before the result.

COMPANY PROFILE OF NAVIN FLOURINE

Date of Incorporation 25-June-1998 Date of Listing 01-June-2007

Management Name Designation

H A Mafatlal Chairman R V Haribhakti Director V P Mafatlal Director T M M Nambiar Director S S Lalbhai Director S M Kulkarni Director S G Mankad Director P N Kapadia Director H H Engineer Director S S Khanolkar Managing Director A K Srivastava Non Exe.Non

Ind.Director Registered Office Address

2nd floor, Sunteck Centre,37/40 Subhash Road,Vile Parle

(East),400057,Mumbai,Maharashtra,India Website

http://www.nfil.in

Share Price Performance EXCHANGE SYMBOL NAVIN

FLOURINE Current Price * (Rs.) 2002.00 Face Value (Rs.) 10

52 Week High (Rs.) 2078.40 (03-May-16)

52 Week Low (Rs.) 777.00 (07-May-15)

Life Time high (Rs.) 2078.40 (03-May-16)

Life Time low (Rs.) 74.00 (25-Mar-09)

Average Daily Movement 70.76 Average Volume [20 days] 24411 1 Month Return (%) 17.61 P/E Ratio (x) 22.71 Book Value 599.61 Market Cap 1964.92 (Cr) % of Promoter holding pledged 15.55


Product Overview

1. Pioneer in Refrigerants in India:

NFIL offers refrigerants under its brand name Mafron, which over the years, has become a generic name for refrigerants in India and in many other global markets. It is used in various Industries like:

Window and split room air conditioners

Chillers, packaged air conditioners and commercial and industrial refrigeration units

Intermediate for API’s

Fluoropolymer resins

Domestic and Industrial refrigerators

Mobile air conditioning (MAC)

NFIL’s Strengths in Refrigerants

High performance and high quality refrigerants

Suitable for various refrigeration and air conditioning applications

Strong domestic and overseas distribution network

Supplied in returnable cylinders, disposable cylinders and ISO tanks 2. Inorganic Fluorides:

NFIL has a long and rich experience in manufacturing various inorganic fluorides with capacity, flexibility and experienced work force. NFIL has the ability to develop products as per customer’s need. Industries and Application segments:

Oil & Gas & Solar energy

Stainless Steel

Pharmaceutical & Agrochemicals

Abrasives

Electronics

NFIL’s Strengths in Inorganic Fluorides

High quality reputed supplier

Ability to develop products as per customers specifications

Excellent distribution network in India and overseas

Can deliver in wide range of packaging’s conforming to international standards

Ready stocks enabling customers to save time


3. Large Scale Manufacture of Specialty Fluoro Intermediates

Company’s expertise, built through decades of experience in fluorine chemistry, coupled with state of art manufacturing infrastructure enables them to produce a wide range of value added Specialty fluoro intermediates in large quantities in a safe and responsible manner. NFIL has dedicated multipurpose plants (MPP) to process multi step products and intermediates which are high in the value chain. It has capabilities to handle complex chemistries and deliver high quality products in all forms. NFIL is one of the leading high quality producers of Boron trifluoride gas and it’s adducts.

NFIL has built excellent relationships with Indian and Global life science and agro chemical companies as they always focus on existing, diverse and emerging needs of their clients.

Industries and Application segments:

Pharmaceuticals

Crop protection

Hydrocarbon

Fragrances

4. Contract Research and Manufacturing Services (CRAMS):

NFIL offers custom chemical syntheses of fluorinated compounds for the pharmaceuticals, agro chemicals and speciality chemicals industries. They are building upon their solid experience and expertise in fluorine chemistry, fluorination and reagents, both in research and development and in manufacturing areas. NFIL offering and capabilities include basic research, library syntheses, process development, scale up and small and large batch manufacturing.

NFIL provides a comprehensive basket of services for developing new products, processes and novel technologies to its clients with complete large scale manufacturing support ensuring stringent customer specifications and regulatory compliance.

Manchester Organics Limited, subsidiary of NFIL operates out of the UK and works very closely with CRAMS team in offering a wide basket of research and custom synthesis services spanning all areas of the chemical industry, ranging from pharmaceuticals and crop protection to electronics.


Key Highlights:

Manufacturing Facility at Dewas

The new facility is India’s only plant with cGMP compliant

capabilities for high pressure fluorination

Numerous Customer Audits completed successfully

Plant commercially operational

Greenfield Facility at Dahej, Gujarat

• JV with Piramal Enterprises Ltd. to develop, manufacture and sell speciality Fluorochemicals for healthcare segment

• Product validation in process

Entered into agreement with Honeywell

• For a small scale manufacturing project on HFO-1234 yf

• Next Generation Refrigerant Gas with GWP less than 1

• For use in vehicle air conditioning systems.

Awarded for Occupational Safety & Health by National Safety Council of India

• Honoured with Silver Trophy & Certificate

• Only manufacturing unit in Gujarat to get this award in this

category


Foreign Investor in Chemicals Sector:

Mitsubishi Chemical Corporation

(Japan)

BASF (Germany)

ADEKA (Japan)

Akzo Nobel (Netherlands)

DuPont (USA)

Syngenta (Switzerland)

Croda (UK)

DyStar (Germany)

Henkel (Germany)

Dow Chemicals (USA)

Rhodla (Belgium)

Wacker Metroark (Germany)

Chemicals and Petrochemicals Industry Outlook

Position of Chemical industry in world

India is the largest producer of chemicals in Asia and sixth by output, in the world.

The chemicals industry is a key constituent of the Indian economy, accounting for about 1.38% of the nation’s GDP.

India is currently the world’s third largest consumer of polymers and fourth largest producer of agro-chemicals.

India’s proximity to the Middle East, the world’s source of petrochemical feedstock, makes for economies of scale.

Strong government support for R&D. Polymers and agro-chemicals industries in India present

immense growth opportunities. 100% FDI permitted through automatic route. Chemical Sector is delicensed except for few hazardous

chemicals. Upcoming Petroleum, Chemicals and Petrochemicals

Investment Regions (PCPIR) & Plastic Parks will provide state-of-the-art infrastructure for Chemical & Petrochemicals Sector.

Trade in most of the chemicals is free except for those attracting provision of international conventions.

Market Size

The estimated size of the market is USD 144 Billion.

India accounts for approximately 16% of the world production of dyestuff and dye intermediates.

Total production of the Indian chemicals industry was 19,308 Thousand Metric Tonnes in 2013-14.

It is one of the most diversified sectors, covering more than 70,000 commercial products.

Current production of polymers is around 9 Million Tonnes with imports of around 2.8 Million Tonnes.

Polymer demand is expected to grow by 8-10% with healthy growth in industries such as clothing, automobiles etc.


Parameter driving Chemical Sector

A large population, huge domestic market dependence on agriculture and strong export demand are the key growth drivers for the industry.

A global shift towards Asia as the world’s chemicals manufacturing hub

Per capita consumption of chemicals in India is lower as compared to western countries, so immense scope for new investments.

Rise in GDP and purchasing power generates huge growth potential for the domestic market.

A focus on new segments such as specialty and knowledge chemicals.

Low-cost manufacturing.

Skilled science professionals.

World-class engineering and strong R&D capabilities. FDI POLICY

100% Foreign Direct Investment (FDI) is allowed under the automatic route in the chemicals sector, subject to all the applicable regulations and laws.

Government Initiatives

BUDGET ANNOUNCEMENTS FOR 2O15-2O16:

Reduced Basic Customs Duty (BCD) on Ulexite from 2.5% to

0%.

Reduced Special Additional Duty (SAD) on Naphtha from 4% to

2%.

Reduced BCD on Styrene Monomer from 2.5% to 2%. Further,

SAD on this product has been reduced from 4% to 2%.

Reduced BCD on Ethyleme Dichloride from 2.5% to 2%.

Further, SAD on this product has been reduced from 4% to 2%.

Reduced BCD on Vinyl Chloride Monomer from 2.5% to 2%.

Further, SAD on this product has been reduced from 4% to 2%.

Reduced BCD on Isoprene from 5% to 2.5%

Reduced BCD on Anthraquinone for Hydrogen Peroxide from

7.5% to 2.5%

Reduced BCD on Butyl Acrylate from 7.5% to 5%.

Reduced BCD on Liquefied Butanes from 5% to 2.5%.


Company Financials

Profitability Highlights

NFIL post exceptional results in FY16

NFIL’s Revenue increased 15% YoY, The CRAMS segment

grew 175% YoY, contributing 2/3rd of the incremental sales

EBITDA increased by 63% YoY

PAT increased 53% YoY

Income Statement ( In Bn) FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Revenue 4,307.4 7,219.3 5,482.3 4,842.5 5,915.1 6,781.3

Total Revenue 4,307.4 7,219.3 5,482.3 4,842.5 5,915.1 6,781.3

Selling General & Admin Exp. 1,907.7 2,879.3 2,922.3 2,769.5 3,495.1 3,901.7

R & D Exp. - 82.9 81.9 72.4 123.7 N.A

Depreciation & Amort. 138.4 188.2 208.0 218.2 201.2 224.9

Other Operating Expense/(Income) 1,168.3 1,698.5 1,506.4 1,328.6 1,561.9 1,706.1

Operating Expense., Total 3,214.3 4,848.9 4,718.6 4,388.7 5,382.0 5,832.8

Operating Income 1,093.1 2,370.4 763.7 453.9 533.1 948.6

Interest Expense 36.0 35.6 61.2 55.3 33.3 37.8

Other Non-Operating Inc. (Exp.) - (44.9) (42.1) (419.7) (257.1) (207.1)

EBT Excl. Unusual Items 1,057.1 3,061.3 699.5 827.5 782.6 1,155.6

Income Tax Expense 343.7 886.3 258.5 147.6 200.3 320.6

Earnings from Cont. Ops. 713.4 2,175.0 441.0 679.9 582.4 835.0

Minority Int. in Earnings (0.0) (0.9) 7.2 22.7 36.7 0.0

Net Income 713.4 2,175.9 433.9 657.2 545.6 835.0

Basic EPS 70.81 222.91 44.45 67.33 55.87 85.40

Dividends per Share - 15.0 15.0 16.0 16.0 21

Payout Ratio % 24 37 40 36 38 29

EBIT 1,093.1 2,370.4 763.7 453.9 533.1 948.6

Effective Tax Rate % 32.5 29.0 37.0 17.8 25.6 27.7

Normalized Net Income 713.4 2,175.9 433.9 657.2 545.6 835.0


The Conslidated Financials include the financials of three foreign subsidiaries and two Indian subsidiaries & 2 JV Companies:

Manchestar Organics Ltd- Foreign

NFIL (UK) Ltd- Foreign

Navin Florine (Shanghai) Co Ltd- Foreign

Sulakshana Securities Ltd- Indian

Urvija Associates Ltd- Indian

Swarnim Gujarat Fluorspar Pvt Ltd-JV

Convergence Chemicals Pvt Ltd-JV

Balance Sheet ( In Mn) FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

ASSETS

Cash And Equivalents 177.3 1,054.7 254.8 339.2 174.8 286.8

Short Term Investments - 190.0 854.6 1,299.6 632.7 532.1

Total Cash & ST Investments 177.3 1,244.7 1,109.4 1,638.8 807.4 818.9

Accounts & Notes Receivable 578.0 664.7 743.7 904.5 1,198.6 1,499.3

Total Receivables 578.0 664.7 743.7 904.5 1,198.6 1,499.3

Inventories 551.0 886.3 773.9 655.6 760.6 755.3

Prepaid Exp. 15.7 59.9 17.4 32.8 39.5 -

Restricted Cash - 13.6 21.6 23.0 24.5 -

Other Current Assets 261.4 111.4 125.6 261.2 279.7 386.8

Total Current Assets 1,583.3 2,980.5 2,791.5 3,515.9 3,110.5 3,460.2

Net Property, Plant & Equipment 2,192.3 2,619.2 2,576.4 2,523.9 2,925.8 3,072.9

Long-term Investments 477.5 1,399.7 1,192.1 1,018.2 1,160.2 2,131.4

Other Long-Term Assets 950.4 641.7 695.9 735.6 1,323.0 877.6

Total Assets 5,203.5 7,641.2 7,255.9 7,793.6 8,519.5 9,542.1

LIABILITIES

Short-term Borrowings 490.7 935.4 836.4 574.0 338.3 341.0

Accounts Payable - 464.5 506.2 608.9 892.2 956.2

Curr. Income Taxes Payable - 1.2 0.3 8.6 27.8 -

Other Current Liabilities 838.0 873.8 235.8 338.4 382.5 659.8

Total Current Liabilities 1,328.7 2,274.9 1,578.6 1,529.9 1,640.9 1,957.0

Long-Term Debt - 10.6 1.5 2.5 274.6 475.5

Other Non-Current Liabilities 490.6 516.1 564.6 615.3 598.3 656.1

Total Liabilities 1,819.3 2,801.6 2,144.7 2,147.7 2,513.8 3,088.6

Minority Interest 0.0 62.6 69.8 92.4 129.1 0.1

Additional Paid In Capital 97.6 202.7 202.7 202.7 206.1 97.9

Comprehensive Inc. and Other 3,286.6 4,574.3 4,838.8 5,350.7 5,670.6 6,355.6

Total Equity 3,384.2 4,839.6 5,111.3 5,645.9 6,005.7 6,453.5

Total Liabilities And Equity 5,203.5 7,641.2 7,255.9 7,793.6 8,519.5 9,542.1


Cash Flow ( In Mn) FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Net Income 713.4 2,175.9 433.9 657.2 545.6

Depreciation & Amort., Total 138.4 188.2 208.0 218.2 201.2

Other Non-Cash Adj 105.1 (479.2) 16.7 (141.0) (30.9)

Changes in Non-Cash Capital (619.6) (451.9) 100.1 (30.1) (687.2)

Cash from Ops. 337.4 1,432.9 758.8 704.3 28.7

Capital Expenditure (480.1) (620.1) (172.1) (186.5) (622.7)

Sale of Property, Plant, and Equipment 1.4 2.4 10.5 7.3 1.2

Cash Acquisitions (475.7) (803.8) (614.6) (2,590.2) (988.5)

Proceeds from Investment - - 207.2 2,257.0 1,663.4

Investment in Marketable & Equity Securt. (475.7) (803.8) (614.6) (2,590.2) (988.5)

Other Investing Activities 390.2 574.6 1,496.3 2,886.4 917.2

Cash from Investing (1,039.8) (1,650.6) 312.6 (216.3) (17.9)

Long-Term Debt Issued 485.3 442.9 - 1.0 274.6

Long-Term Debt Repaid (94.1) (14.0) (108.2) (262.4) (238.1)

Total Debt Issued/Repaid 391.2 428.9 (108.2) (261.4) 36.5

Pref. Dividends Paid (163.9) (190.4) (831.8) (169.5) (183.3)

Total Dividends Paid (163.9) (190.4) (831.8) (169.5) (183.3)

Increase in Capital Stocks - - - - 3.3

Other Financing Activities 0.0 54.2 0.0 (0.1) (36.5)

Cash from Financing 91.7 292.7 (940.0) (431.0) (180.1)

Net Change in Cash (610.8) 75.0 131.4 57.0 (169.4)

Cash Interest Paid 36.2 35.6 61.2 55.3 33.3

Cash Taxes Paid 313.5 883.2 281.2 106.7 195.8

Free Cash Flow (142.7) 812.9 586.6 517.8 (594.0)

Cash Flow Highlights:

Operating cash flow which was negative in 2015 is expected to be positive in 2016

Free Cash Flow which was negative in 2015 is expected to be positive by 2017.


Key ratios Highlights

NFIL’s Return on Asset increased by 9.2% YoY

NFIL’s Return on Equity Employed increased by 13.5% YoY

Margin Ratios of NFIL has also improved YoY

Fixed Asset Turnover is also improving ever year constantly.

Ratios FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Profitability

Return on Assets 14.5% 33.9% 5.8% 8.7% 6.7% 9.2%

Return on Capital -- -- 8.2% 11.9% 9.5% 12.4%

Return on Equity 22.4% 53.3% 8.8% 12.4% 9.5% 13.5%

Margin Analysis

EBITDA Margin 28.6% 35.4% 17.7% 13.9% 12.4% 17.3%

EBIT Margin 25.4% 32.8% 13.9% 9.4% 9.0% 14.0%

Earnings from Cont. Ops Margin 25.4% 32.8% 13.9% 9.4% 9.0% 14.0%

Net Income Margin 16.6% 30.1% 7.9% 13.6% 9.2% 12.3%

Normalized Net Income Margin 16.6% 30.1% 7.9% 13.6% 9.2% 12.3%

Free Cash Flow Margin -3.3% 11.3% 10.7% 10.7% -10.0% --

Asset Turnover

Total Asset Turnover 0.9x 1.1x 0.7x 0.6x 0.7x 0.8x

Fixed Asset Turnover 2.1x 3.0x 2.1x 1.9x 2.2x 2.3x

Accounts Receivable Turnover 8.9x 11.6x 7.8x 5.9x 5.6x 5.0x

Short Term Liquidity

Current Ratio 1.2x 1.3x 1.8x 2.3x 1.9x 1.8x

Quick Ratio 0.6x 0.8x 1.2x 1.7x 1.2x 1.2x

Cash from Ops. To Current Liabilities 0.1x 0.5x 0.7x 1.1x 0.5x 0.4x

Avg. Days Sales Out. 41.0x 31.5x 46.9x 62.1x 64.9x 72.8x

Avg. Days Payable Out. -- -- 67.6x 88.0x 88.8x --

Long Term Solvency

Total Debt/Equity -- 19.5% 16.4% 10.2% 10.2% 12.7%

Total Debt/Capital -- 16.4% 14.1% 9.3% 9.3% 11.2%

LT Debt/Equity -- 0.2% 0.0% 0.0% 4.7% 7.4%

LT Debt/Capital -- 0.2% 0.0% 0.0% 4.1% 6.5%

Total Liabilities/Total Assets 9.4% 6.9% 7.8% 7.9% 10.2% 11.9%

EBIT / Interest Exp. 30.40x 66.52x 12.47x 8.21x 16.02x 25.10x

EBITDA / Interest Exp. 34.25x 71.80x 15.87x 12.16x 22.06x 31.05x

(EBITDA-CAPEX) / Interest Exp. 20.90x 54.40x 13.06x 8.79x 3.35x --

Total Debt/EBITDA -- 0.37x 0.86x 0.86x 0.83x 0.70x

Net Debt/EBITDA -- -0.12x -0.28x -1.58x -0.26x 0.00x


Peer Comparison

Company Name: NAVIN FLUORINE I ATUL LTD UPL LTD TATA CHEMICALS

Latest Fiscal Year: 03/2016 03/2016 03/2016 03/2015

52-Week High 2,078.40 1,924.00 606.90 526.00

52-Week High Date 5/3/2016 5/5/2016 5/5/2016 7/23/2015

52-Week Low 777.00 1,088.00 367.25 309.60

52-Week Low Date 5/7/2015 6/15/2015 2/12/2016 2/26/2016

Daily Volume 14,596 96,902 2,775,356 315,805

Current Price: 2,011.95 1,876.60 592.45 400.00

52-Week High % Change -3.2% -2.5% -2.4% -23.6%

52-Week Low % Change 158.9% 72.5% 61.3% 29.2%

Total Common Shares (M) 9.8 29.7 428.6 254.8

Market Capitalization 19,691.6 55,663.2 253,926.6 101,902.5

Total Debt 816.5 2,759.5 38,602.6 83,787.0

Minority Interest 0.1 56.2 423.0 6,734.9

- Cash and Equivalents 818.9 247.0 10,678.5 14,697.6

Current Enterprise Value 19,689.2 58,231.9 282,273.7 162,199.1 Above table shows that all NFIL has given highest upward movement of 159% from its 52 week low of 777

Peer Comparison

INSTRUMENT Price Market Cap

% FII Holding

P/E Ratio

Debt Equity Ratio

NAVIN FLUORINE

2011.95 1982 4.89 22.82 0.1

ATUL 1876.6 5440 6.32 20.26 0.25

DCW 27.65 621 0 19.08 1.23

MEGHMANI ORGANICS

34.3 838 0 11.19 0.92

UPL 592.45 24835 20.21 19.1 0.47

NOCIL 53.1 869 0.45 12 0.3

SUDARSHAN CHEMICAL

107.8 746 0 14 1.46

TATA CHEMICALS

400 10384 21.95 22.41 1.26

NFIL is the lowest debt company among its peers & the PE is at par with the industry PE of 20

Price Performance Comparison

INSTRUMENT 1M 3M 6M 1Y Post Budget

NAVIN FLUORINE

20.95 25.71 19.23 145.79 48.63

ATUL 12.3 22.94 4.63 53.9 32.02

DCW 12.09 16.63 29.01 51.1 41.34

NOCIL 14.91 11.63 13.43 31.84 35.91

UPL 26.28 40.56 31.75 16.97 52.98

MEGHMANI ORGANICS

37.58 50.9 50.9 111.36 72.24

SUDARSHAN CHEMICAL

15.66 14.86 -5.99 0.99 33.56

TATA CHEMICALS

10.32 8.86 -4.13 -9.47 25.63

NFIL has given movement of 48.63% after budget was announced on 29th Feb 2016.

https://www.dynamiclevels.com/en/navin-fluorine-share-price-forecast


https://www.dynamiclevels.com/en/atul-share-price-forecast

https://www.dynamiclevels.com/en/dcw-share-price-forecast

https://www.dynamiclevels.com/en/meghmani-organics-share-price-forecast


https://www.dynamiclevels.com/en/upl-share-price-forecast

https://www.dynamiclevels.com/en/nocil-share-price-forecast

https://www.dynamiclevels.com/en/sudarshan-chemical-share-price-forecast


https://www.dynamiclevels.com/en/tata-chemicals-share-price-forecast




https://www.dynamiclevels.com/en/atul-share-price-forecast

https://www.dynamiclevels.com/en/dcw-share-price-forecast

https://www.dynamiclevels.com/en/nocil-share-price-forecast

https://www.dynamiclevels.com/en/upl-share-price-forecast








Shareholding Pattern

Shareholding Pattern Mar-16 Dec-15 Sep-15 Jun-15 Mar-15

Promoter and Promoter Group (%) 38.70 38.71 38.76 38.79 38.80

Indian 38.70 38.71 38.76 38.79 38.80

Foreign NIL NIL NIL NIL NIL

Institutions (%) 27.03 24.95 24.60 24.01 21.17

FII 4.89 NIL 7.64 7.80 8.00

DII 22.15 24.95 16.96 16.21 13.17

Non Institutions (%) 34.26 36.34 36.64 37.20 40.03

Bodies Corporate NIL NIL 3.80 3.67 5.24

Others 34.26 36.34 32.84 33.53 34.79

Custodians NIL NIL NIL NIL NIL

Total no. of shares (cr.) 0.98 0.98 0.98 0.98 0.98

NFIL’s shareholding shows that FII investment have increased the stake from NIL to 4.89 QoQ

Persons holding securities more than 1% of total number of shares under category Public Shareholding.

Category Mar-16

Dec-15

Sep-15

Jun-15

Mar-15

HRISHIKESH A MAFATLAL Promoters 2.65 2.65 2.7 2.7 2.7

MAFATLAL EXIM PRIVATE LIMITED Promoters 3.32 3.32 3.32 3.32 3.32

MAFATLAL IMPEX PRIVATE LIMITED Promoters 11.2 11.2 11.2 11.2 11.2

Mafatlal Industries Limited Promoters 1.94 1.94 1.94 NIL 1.94

NOCIL LIMITED Promoters 5.79 5.79 5.8 5.8 5.8

SUREMI TRADING PRIVATE LIMITED Promoters 10.06 10.06 10.07 10.07 10.07

VISHAD PADMANABH MAFATLAL Promoters 1.91 1.91 1.91 1.91 1.91

Ajay Shivnarain Upadhyaya Non Promoters 1.02 1.02 2.05 2.05 2.05

ASHISH KACHOLIA Non Promoters 1.69 2.48 2.48 2.48 2.48

ATYANT CAPITAL INDIA FUND (FII) Non Promoters 1.66 2.88 3.05 3.05 3.05

CANARA ROBECO MUTUAL FUND A/C CANARA ROBECO E

Non Promoters 1.08 1.07 NIL NIL NIL

DSP BLACKROCK MICRO CAP FUND Non Promoters 4.6 4.57 4.57 4.57 4.57

GHI LTP LTD Non Promoters 1.74 1.74 1.74 1.74 1.74

GOLDMAN SACHS INDIA FUND LIMITED Non Promoters 1.67 NIL NIL NIL NIL

Reliance Capital Trustee Co Ltd-A/C Non Promoters 4.55 4.9 4.9 4.87 3.2

SUNDARAM MUTUAL FUND A/C SUNDARAM

Non Promoters 2.12 2.12 2.12 2.12 2.12

VANDERBILT UNVERSITY A/C VANDERBILT

Non Promoters 1.23 NIL NIL NIL NIL

Promoters of NFIL India have kept their investment constant throughout the year


78.46%

18.74%

2.02% 0.78% India

Unknown Country

Luxembourg

United States

50.64%29.48%

8.01%

11.87% Corporation

Investment Advisor

Individual

Other

Geographic Ownership Distribution

India 78.46%

Unknown Country 18.74%

Luxembourg 2.02%

United States 0.78%

Institutional Ownership Distribution

Corporation 50.64%

Investment Advisor 29.48%

Individual 8.01%

Other 11.87%

9.8

56.2%

23.53% 73.65% 2.82%

Shares Outstanding (M)Float

Ownership (Institutional)

Ownership (Retail & Other)Ownership (Insider)

Ownership Statistics

Shares Outstanding (M) 9.8

Float 56.2%

Ownership (Institutional) 23.53%

Ownership (Retail & Other)

73.65%

Ownership (Insider) 2.82%


Company’s Strength & Future Outlook

Fluorination Capabilities:

Pioneered Manufacturing of Refrigerant Gases in India

Over 45 years of experience in handling Fluorine

Extensive expertise focusing on specialty fluorine chemistry

Manufacturing:

Chemical Complex at Surat spread over 135 acres, houses Refrigerant,

Inorganic Fluorides & Specialty Chemicals Plants

cGMP Compliant Pilot plant for CRAMS

in Dewas

cGMP Compliant Manufacturing plant for CRAMS fully operational

In-house R&D:

State-of-the-art R&D centre – Navin Research Innovation Centre at Surat

DSIR approved R&D Centre

Supports in product addition & process efficiency in all business units

R&D strength augmented by Manchester Organics Acquisition

Raw Material Sourcing:

Backward integration for Raw material through 25% JV partner in the only Fluorspar beneficiation company in India

Supply from JV to commence in FY18

Diversified sourcing of Fluorspar away from China


Investment Rationale

NFIL post exceptional results in FY16

NFIL’s Return on Net Worth increased highest in last 4 years by 14% YoY

NFIL’s Return on Capital Employed increased highest in last 4 years by 18% YoY

NFIL’s Revenue increased 15% YoY

EBITDA increased by 63% YoY

PAT increased 53% YoY

Company paid highest dividend in last 7 years @210%

The new manufacturing facility set in Dewas for high pressure fluorination in the only plant in India and

it has started its commercial operations

NFIL entered in JV with Honeywell on 22nd March for manufacturing next generation Refrigerant Gas

with GWP less than for vehicle air conditioning systems. This partnership will help meet growing global

demand for environmentally preferable refrigerant. NFIL was up by 20% on 23rd March after this

agreement was signed. Production is expected to begin by the end of 2016

NFIL’s entered into joint Venture with Piramal Ent. Ltd to develop, manufacture and sell speciality Fluor

chemicals for healthcare segment in 2014. The strategic joint venture aims to leverage NFIL’S

capabilities and Piramal's strong presence in healthcare. With the increasing importance of fluorine in

life sciences, there is a considerable potential to exploit synergies between the two companies. Supply

is expected to commence by FY18

NFIL is entering new counties by introducing new molecules in Inorganic Fluorides segment and

Speciality Chemicals segment.

Government Reduced Basic Customs Duty (BCD) and Special Additional Duty (SAD) on various chemicals

which will benefit NFIL

NFIL exports 100% of Contract Research and Manufacturing Services (CRAMS)

Government has allowed 100% FDI through automatic route.

The estimated size of the market is USD 144 Billion.

We recommend BUY in Navin Fluorine International Ltd in correction @ 1550-

1600 with the target of 2150.



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