SRF, Navin Fluorine soar 12% as refrigerant gas prices see sharp hike

On January 9, shares of chemical companies SRF and Navin Fluorine rose by about 12% following news of a sharp increase in refrigerant gas prices in the US. This marked the third straight day of gains for both stocks, signaling strong investor confidence in these companies.

By 9:46 a.m., Navin Fluorine’s shares were trading at ₹3,887.90 on the NSE, slightly below its 52-week high of ₹4,017.10, reached earlier in the session. SRF’s stock price stood at ₹2,636.95, continuing its upward trend.

The price increase was reported by CNBC Awaaz, which cited US gas distributors, including IGas USA. The report stated that supplies of refrigerant gases like R32 and R125 had been disrupted, causing prices to surge by up to 200%.

Brokerage firm Equirus noted that a $1 per kilogram rise in R32 prices could boost SRF's earnings (EBITDA) by ₹260 crore and Navin Fluorine's by ₹77 crore. Both companies are leading players in India’s refrigerant gas market, and the price hike is expected to significantly improve their profits.

For the past two years, both firms have faced challenges due to weak global demand and an oversupply of Chinese products. The recent price hike offers a much-needed boost to their performance, which has positively impacted investor sentiment.

SRF has a production capacity of 29,000-30,000 tonnes for R32, while Navin Fluorine has a capacity of 4,500 tonnes. Navin Fluorine is set to double its capacity next month by adding another 4,500 tonnes. Additionally, SRF produces around 7,000 tonnes of R125 refrigerant.

This increase in refrigerant gas prices is expected to enhance the profitability of both companies and help them recover from recent challenges, making SRF and Navin Fluorine stand out as strong contenders in the refrigerant market.

#trending #latest #StockMarket #FinanceNews #ShareMarket #InvestmentTips #SRF #NavinFluorine #MarketTrends #RefrigerantGas #Trading #EquityMarket #InvestorUpdates #PriceHike #Earnings #IndianStocks #StockInvesting #breakingnews #trendingnews #DXBIndiaNews #BreakingNewsIndia #IndiaUpdates #GlobalIndiaNews #TrendingInIndia #DXBTrending #IndiaHeadlines #TopStoriesIndia #MiddleEastMeetsIndia #ViralIndiaNews #SouthAsiaNews #AllIndianews #breakingsportsnews #breakingPoliticalnews #breakingFinancenews #breakingregionalnews #Entertainmentnews #Educationnews #technologynews #DXBIndia

Simple yoga poses to help reduce PCOD symptoms and balance hormones... Read More.

RPSC has released the RAS Preliminary Exam 2024 admit cards today, January 30, 2025.... Read More.