Navin Fluorine: Greenfield Expansion Plan To Boost Growth

Navin Fluorine: Greenfield expansion plan to boost growth

Padmanabh Mafatlal Group company, Navin Fluorine International has embarked on growth through greenfield expansion plan which will see the Gujarat-based Chemical maker investing Rs 450 crore over the next 3 – 4 years.

In its statement to the Stock Exchanges, the company informed about the proposed capex program that it will carry out at Dahej (Gujarat) through a wholly-owned subsidiary.

The Board of Directors, at their meeting held on Thursday, has initially approved the capital expenditure of approx Rs 90 crore for site development and related infrastructure on approx 74 acres of land for greenfield projects at Dahej (Gujarat) through a wholly-owned subsidiary

The capital expenditure will be funded by internal accruals.

It expects the infrastructure development program will enable setting up various future greenfield projects in fluorochemicals.

Each of these projects will be separately approved by the Board over a period of time.

Meanwhile, the Navin Flourine share price has gained over six-fold in the last five years, achieving a compound earnings per share (EPS) growth of 24% per year.

Thanks to its generous dividend payment policy which returned over sevenfold, better than share price return.

We understand that the potential of online steroids shop the fluorochemicals sector is bright and especially for Naveen Fluorine a dominant player which enjoys a strong business model here with good operating metrics.

With a large part of the ongoing expansion being funded by internal accruals, we believe this is definitely a good sign as incremental Roce will be attractive which will contribute healthily to future top line and profit growth ahead.

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