Stock Market Today: SRF and Navin Fluorine share price skyrocketed up to 14% in trade on Thursday, January 9 following the rise in global refrigerant merchandise gas prices that are expected to boost the earnings of specialty chemical manufacturers.
SRF share price opened at ₹2478.05 on the BSE on Thursday, more than 1% higher than the previous close of ₹2350.90. SRF share price further gained to highs of 2678.95, marking gains of 14%.
Navin Fluorine International share price opened at ₹3579.30, higher than the previous close of ₹3489.45. Navin Fluorine International share price thereafter gained further to highs of ₹3974.15, which translated into gains of almost 14%.
The rise comes after a major U.S. distributor with sizable quotas issued concerns about serious supply shortages for R32 and R125, two essential refrigerant gases. Global refrigerant merchandise gas prices thereby are rising sharply. The heating, ventilation, and air conditioning companies or the HVAC sector, which depends largely on these gases for its operations, is facing difficulties as a result of the shortages or limitations in the availability of gases.
Analyst View
Analysts already have a positive view on Navin Fluorine. As per Prabhudas Lilladher Naveen Fluorine has guided for strong order visibility in H2FY25 and FY26, and aims to double revenue by FY28. The HFO plant is operating at optimal utilisation and R32 demand continues to remain strong. Expansion of R-32 capacity is on track for commissioning in Feb’25, it said.
Specialty segment continues to remain soft but has strong order visibility going ahead. CDMO vertical, which underperformed in FY24 due to deferred sales of key molecules, has shown improvement in H1FY25. This segment has guided for a strong order book position for H2FY25 and a USD100mn revenue target for FY27. Analysts at Prabhudas Lilladher expect revenue and EBITDA to improve by 13% and 56% on a year-on-year basis, respectively and 9.5% and 10.3% sequentially.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
