>NAVIN FLUORINE (WAY 2 WEALTH)

WHY NAVIN FLUORINE ???

INVESTMENT IDEA

• Largest integrated fluorochemicals complex in India with hydrofluoric acid capacity of more than 20,000 tpa – provides ability to speedily address new requirements of customers.

• Co has got a healthy mix of domestic and export sales. While refrigerant business is domestically doing well, export business margins are fluctuating. The products are sold under the brand name “Mafron”

• Bulk chemical business is subject to some competitive pressure. However, specialty fluoride is growing at high pace (3 yr CAGR: 18%) and the co is a leading global player in BF3.

• Key clients – Top five global crop protection companies like BASF and Bayer Cropscience; domestic clients includes Ranbaxy, Matrix, Aurobindo, Hetero, Orchid, Lupin

• Phasing out CFC as per Montreal Protocol, will be more than compensated by HCFC business, which finds its application into air-conditioners and refrigerators. HCFC business window is open till 2040.

• Consulted Mckinsey & Co to identify areas of cost reductions and profit improvement.

• Income from sales of Certified Emission Reductions (CERs) will further improve the financial profile of the company. (Refer to next slide)

• Healthy B/S and will become debt free in the current year; strong return ratios as well.

• High dividend yield of 5%

• Substantial recovery of dues from the group company, Mafatlal Industries, is expected as per the Chariman’s speech at the AGM

• Valuable property at Mafatlal Centre, Nariman Point will be free of lease by 2012.

To see full report: NAVIN FLUORINE