Navin Fluorine International

sudhashbahu · #1 19th July 2011, 09:53 AM

From the financial numbers, this company seems to be doing quite well but the valuations of the company are low leading me to wonder if there are any hidden problems. Do other members have any information?

The company has shown good growth with '07 EPS of 12.47 and '11 EPS of 71.11 giving CAGR of 54.5% !!!

RONW is 25.5% and dividend yield at current prices is 4.32%

Stock is available at P/E of 4.41 and P/B of 0.95.

Anything fishy? Am I missing something?

sudhashbahu · #2 23rd November 2011, 09:20 PM

P/E Ratio is around 2.00 now!

Any inputs on this company?

Alchemist · #3 24th November 2011, 07:43 AM

I think a significant part of company's profit come from carbon credits.

Profits for carbon credit are expected to shrink significantly in next few quarters.

Quote:

CER prices have fallen recently due to several factors: The ongoing eurozone debt crisis; potentially lower acceptance of CERs after 2012; and the lower probability of developed and industrialised countries agreeing to binding commitments after the first commitment period of the Kyoto Protocol (ending December 2012).

TEXT: Fitch: Carbon Credit Revenues Likely To Fall Post 2012 | Energy & Oil | Reuters

The carbon credit market is already depressed.

Quote:

European Union carbon permits dropped to the lowest since 2009 amid concern that the region’s sovereign-debt crisis is hurting economic production.

EU Carbon Permits Drop to Record Low as European Debt Crisis Trims Demand - Bloomberg

I still haven't looked at the financial statements of Navin Fluorine International.

A fair valuation of the stock can only be done if the earnings from carbon credits and earnings from the core business are considered separately.