Asia NDR Takeaways: Building Long-Term Growth

Research evidence excerpt

Asia NDR Takeaways: Building Long-Term Growth

It is redesigning the tech

pack to increase production capacity and reduce cost. This is attractive for its clients, which

are facing price erosion from Chinese competition. Exhibit 1 - Earnings Upgrade Cycle Continues

200Cooling solutions - Multiple growth engines: With the commissioning of the 40ktpa HF plant NFIL consensus earnings (EPS; Rs/sh)

and ongoing process improvements, NFIL aims to be a top-quartile producer in India. Demand 170140

for R32 will be sustained by its role in lowering GWP in blends with HFOs, with capacity phase- 110

downs creating a backdrop of healthy pricing. The 2-phase immersion cooling liquid with 8050

Chemours has run successful pilots with NTT and high-density AI capable server maker 2CRSi. Apr-25 May-25 Jun-25 Aug-25 Sep-25 Nov-25 Dec-25 Feb-26 Mar-26 May-26 Jun-26

FY27 FY28Adoption will accelerate over the next 15-18 months. This could result in a commercial-scale .

capex and boost growth in FY29-30. Source: Bloomberg, Jefferies

Exhibit 2 - NFIL 1-yr fwd PE Band chartIncubating the semiconductor chemicals vertical: Company has put together a dedicated 70

team and is partnering with well-regarded players in Asia to create a bouquet of products for 60 NFIL Band Chart

chip manufacturers. 50

Capital discipline: Company has brought down working capital days from 138 in FY23 to 74 40

in FY26. Working capital should be in 80 day ballpark going forward. Balance sheet is net debt 30

neutral. Company expects to fund capex primarily via internal accruals. 20 Jan-20 May-20 Oct-20 Feb-21 Jul-21 Nov-21 Apr-22 Aug-22 Jan-23 May-23 Oct-23 Feb-24 Jul-24 Nov-24 Apr-25 Sep-25 Jan-26 Jun-26