Navin Fluorine Decoding CRAMS Opportunity, Says Nirmal Bang
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Nirmal Bang Report
Contract research and manufacturing services business, which constituted approximately 20% of Navin Fluorine International Ltd.’s FY20 revenue is the fastest-growing segment for the company.
The stock has delivered a whopping ~150% returns over the last year and a large part of the rerating is attributed to greater visibility in the CRAMS segment.
While consensus revenue estimates for CRAMS are more or less similar (~30-35% revenue compound annual growth rate over FY20-23E), the key variable is the valuation multiple.
We are addressing the valuation point wherein we have done detailed comparisons with global contract research organizations/ contract development and manufacturing organizations in order to justify the valuation.
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