SRF and Navin Fluorine share price: Shares of both SRF Ltd and Navin Fluorine rose by 13% today on January 9. Both these stocks have been rising continuously for the last 3 days. This rise has come after the news that American gas distributors have announced an increase in the prices of refrigerant gases. American gas distributor, IGas USA said that there has been a disruption in the supply of R32 and R125 refrigerant gas, due to which the prices have been increased by 200 percent.
Brokerage firm Equirus said in a report that an increase of $ 1 per kilogram in the price of R32 refrigerant gas can increase the operating profit (EBITDA) of SRF Limited by about Rs 260 crore. Due to this, the operating profit (EBITDA) of Naveen Fluorine may increase by about Rs 77 crore.
Why do these changes affect both the companies?
SRF Ltd has a total capacity of 29,000 to 30,000 tonnes of R32 refrigerant, while Naveen Fluorine has around 4,500 tonnes. Naveen Fluorine expects to add another 4,500 tonnes of R32 capacity by next month. Apart from this, SRF also has a capacity of about 7,000 tonnes for R125.
R32 refrigerant is used in air conditioning and low temperature refrigeration systems. It absorbs heat and creates cool air. Similarly, R125 refrigerant is also used in air conditioning, refrigeration and other industries.
At the end of trading, shares of SRF Ltd closed at Rs 2,664.35, up 13.33 per cent. Whereas shares of Naveen Fluorine closed at Rs 3,822.55 with a gain of 9.43 per cent.
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