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Shares of SRF and Navin Fluorine jumped up to 14%, know what caused the stormy rise
After the news of an increase in the prices of refrigerant gases in the US, the shares of specialty chemical companies - SRF and Navin Fluorine jumped by about 12% on January 9. This is the third consecutive trading session when the shares of these two have risen. Shares of SRF rose 13.8% to Rs 2678.95. At the same time, shares of Navin Fluorine rose 13.9% to Rs 3974.15.
Shares of chemical companies SRF Limited and Navin Fluorine International saw a sharp jump of up to 14% on Thursday. The report says that global refrigerant gas prices have increased. This is due to the shortage of supply of key refrigerant gases - R32 and R125. This will also affect the heating, ventilation, and air conditioning (HVAC) sector, which depends heavily on these gases for their operations. This increased investor interest in both firms.
On Thursday, shares of SRF Limited rose 13.8% to a day's high of Rs 2,678.95 on the BSE. Shares of Navin Fluorine International rose 13.9% to Rs 3,974.15. According to Equirus Capital, global supply shortages of refrigerant gases have led to price rises. This has created significant financial opportunities for manufacturers like SRF and Navin Fluorine.
Analysts said SRF is particularly well-positioned. It has an annual production capacity of 29,000-30,000 tonnes of R32 and about 7,000 tonnes of R125. The report estimated that every $1 per kg increase in R32 prices could increase SRF's EBITDA by Rs 260 crore. At the same time, a similar increase in R125 prices could increase its EBITDA by Rs 60 crore.
