Shares of SRF Limited surged by 12.68% to ₹2,649.05 and Navin Fluorine International Limited (NFIL) rose by 12.23% to ₹3,920.40 in early trading today following a sharp rise in refrigerant gas prices, including R32 and R125, globally.
Key Event:
A leading U.S. distributor of refrigerant gases with significant quotas raised alarms over global supply constraints for R32 and R125, creating challenges for the HVAC (Heating, Ventilation, and Air Conditioning) industry.
Implications:
SRF Limited:
- Production Capacity:
- R32: 29,000-30,000 tons.
- R125: ~7,000 tons.
- Financial Impact:
- A $1/kg increase in R32 realization could boost SRF’s EBITDA by ₹2,600 crores.
- A similar $1/kg increase in R125 realization could contribute an additional ₹600 crores to EBITDA.
Navin Fluorine:
- Production Capacity:
- R32: ~4,500 tons, with plans to add another 4,500 tons by February 2025.
- Financial Impact:
- Starting February 2025, every $1/kg increase in R32 realization could add ₹770 crores to NFIL’s EBITDA.
Industry Context:
The price hikes reflect tightening supply dynamics globally, offering significant financial benefits for key players in the refrigerant gas segment like SRF and NFIL.
Disclaimer:
The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Data and insights are sourced from Equirus. Author or Business Upturn is not liable for any losses arising from the use of this information.
