The US gas distributors announced a refrigerant gas price hike due to supply issues with R32 and R125 which might cause a price rise of up to 200 percent. IGas USA, a leading distributor, highlighted the global supply constraints issue that impacts the HVAC (Heating, Ventilation, and Air Conditioning) industry. The company, Igas expects no price reductions in the near term, with the new pricing applying to all US imports in 2025. The brokerage firm, Equirus noted that every $1/kg price change in R32 could boost SRF’s EBITDA by Rs. 260 crore and Navin Fluorine’s by Rs. 77 crore. The R32 and R125 will be used in air conditioning, refrigeration systems, and other industries.
Listed below are some of the stocks that benefit from the US Igas price to increase upto 200% on R32 and R125 supply constraints.
SRF
SRF Limited is a diversified Indian chemicals conglomerate established in 1970, initially focused on tyre cord manufacturing. Its business model encompasses specialty chemicals, fluorochemicals, packaging films, and technical textiles, serving various industries globally. SRF emphasizes innovation and continuous improvement, aiming to enhance quality of life through sustainable products
With a market capitalization of Rs. 79,558.94 Crores, the shares of SRF Limited were trading at Rs. 2,681.40 per equity share, up 14.06 percent from its previous day’s close price of Rs. 2,350.90.
Its Revenue from operations grew by 7.7 percent from Rs. 3,177 Crores in Q2FY24 to Rs. 3,424 Crores in Q2FY25, accompanied by profits of Rs. 301 Crores to Rs. 201 Crores.
Navin Fluorine International
Navin Fluorine International Ltd, part of the Padmanabh Mafatlal Group, specializes in fluorine chemistry, producing refrigerants, inorganic fluorides, and specialty organofluorines. Its business model includes contract research and manufacturing services, catering to diverse sectors like pharmaceuticals and agrochemicals, leveraging its extensive product portfolio and integrated manufacturing capabilities.
With a market capitalization of Rs. 19,458.42 Crores, the shares of Navin Fluorochemicals International Limited were trading at Rs. 3,920 per equity share, up 12.34 percent from its previous day’s close price of Rs. 3,489.45.
Its Revenue from operations grew by 9.9 percent from Rs. 472 Crores in Q2FY24 to Rs. 519 Crores in Q2FY25, accompanied by profits of Rs. 61 Crores to Rs. 59 Crores.
Gujarat Fluorochemicals
Gujarat Fluorochemicals Limited (GFL), established in 1987, specializes in producing refrigerants, chloromethane, and polytetrafluoroethylene (PTFE). Its business model focuses on manufacturing and trading fluoropolymers and specialty chemicals, serving both domestic and international markets. GFL is a key player in the global fluoropolymers sector and has significant export operations.
With a market capitalization of Rs. 44,928.65 Crores, the shares of Gujarat Fluorochemicals Limited were trading at Rs. 4,090 per equity share, up 4.74 percent from its previous day’s close price of Rs. 3,904.80.
Its Revenue from operations increased by 25.44 percent from Rs. 947 Crores in Q2FY24 to Rs. 1,188 Crores in Q2FY25, accompanied by profits of Rs. 53 Crores to Rs. 121 Crores.
Written by Santhosh S
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