Navin Fluorine International Receives 2-Star Rating from CRISIL Equities
Rating Rationale
Navin Fluorine International has been awarded two stars out of five by CRISIL Equities, a leading credit rating agency. This moderate rating reflects the company's fundamentals relative to other listed equity securities in India.
Key Factors Influencing the Rating
- Established Market Presence: Navin Fluorine International's long-standing position as one of the four primary fluorine players in India has positively influenced the rating.
- Stagnation in Core Business:
- Refrigerants: The production of Navin's flagship refrigerant, HCFC 22, is being phased out as per the Montreal Protocol due to its environmental impact.
- Bulk Fluorides: Sales of these low-margin products face intense competition from Chinese counterparts.
CRISIL's Evaluation Criteria for Navin Fluorine International
The following aspects were considered for the 2/5 rating:
- Significant Non-Operating Assets: Notably, the company holds substantial cash reserves.
- Inter-Company Balances: Navin has balances with its group companies.
- Real Estate Holdings: The company owns real estate assets.
- Investments in Group Companies: These investments are made through equity and preference shares.