The Hindu Business Line : Navin Fluorine up on growth prospects

Kolkata June 11 The current upward movement in Navin Flouorine International appears to have gained momentum on Monday as the BSE small cap index constituent attained further height with increase in traded volume. The stock closed at Rs 395, up over 3 per cent, recorded a traded quantity of 92,322 shares on the BSE against its fortnightly average of 37,498 shares. In the last one month, it moved up by 28 per cent and its weekly gain stands at 18.44 per cent.

According to analysts, a sharp improvement in EPS in 2006-07, clearer growth prospect through operation and fresh investments as also additional earnings from carbon trading have started fetching premiums on the valuation.

According to Mr Raghvendra Kumar of ICICI Direct, the carbon credit income alone would generate an EPS upwards of Rs 75 from FY 2008 onwards till FY 2017. In a recent report, Mr Kumar said the company planned to use a part of this money for organic/inorganic growth and share a part with the shareholders.

Navin, created out of Mafatlal Industries (MIL) in 2003 with a legacy of liabilities of Rs 257.21 crore, has reduced the burden to just Rs 63 lakh as on March 31, 2006-07. Navin and Sulakshana Securities Ltd (SSL), its wholly owned subsidiary, were mandated by a BIFR approved restructuring package to settle the dues of term lenders of MIL.

"It appears the company is out of the tunnel finally in terms of baggage of history as it has financially protected itself from a bleeding further. A complete and formal settlement seems in the offing. Navin has guarded itself through provisioning and through SSL's asset (a property at Nariman Point)," said an analyst with an institutional brokerage.