Chemical Stocks Surge: These Two Shares Up by 14% In One Day - Details

Chemical players like SRF Ltd and Navin Fluorine International are in the spotlight today. 

Navin Fluorine International Ltd and SRF Ltd saw their stocks skyrocket on Thursday, with gains of nearly 14%.

The rally follows warnings from a leading U.S. distributor about severe supply constraints for refrigerant gases R32 and R125, essential for the HVAC industry. These disruptions have driven market excitement for Indian chemical manufacturers.

Navin Fluorine Share Price Today
Navin Fluorine started the day strong at Rs 3,590.30, surging to an intraday high of Rs 4,017.10. By 2:32 PM, the stock was trading at Rs 3,830.00, marking a 9.64% rise from its previous close of Rs 3,493.15.

Analysts from Axis Securities remain optimistic, citing various growth drivers.
"While sectoral headwinds continue, we anticipate revenue growth driven by strong export momentum, stabilization of the HFO plant, and a positive trend in refrigerant prices. EBITDA is expected to increase mainly due to operational efficiencies," said the brokerage firm.

SRF Limited Share Price Today
SRF Limited opened at Rs 2,500.00 and hit an intraday high of Rs 2,697.70. By 2:38 PM, it was trading at Rs 2,671.40, reflecting a 13.63% jump from its previous close of Rs 2,350.95.
However, Nuvama Research has a cautious outlook for SRF's chemicals business.

"We expect the chemicals business to continue to be under pressure owing to overcapacities and dumping by Chinese companies. Revenue may decline 14.5% YoY, with EBIT down 29.6% Yo. Packaging films revenue is likely to be higher due to additional volumes from aluminium foil business, thereby translating into a revenue growth of 30.0% YoY. EBIT margins in packaging films, however, shall be subdued due to a prolonged poor cycle for BOPET and BOPP," stated the brokerage.

They noted growth potential in SRF's packaging films division, supported by additional volumes from the aluminum foil business.
 
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