Navin Fluorine rallies 12%, hits new high; zooms 71% from March low

The stock jumped 12% to Rs 1,683 on the BSE today, surpassing its previous high of Rs 1,629 touched on February 26, 2020.

Shares of Navin Fluorine International hit a new high of Rs 1,683, rallying 12 per cent on the BSE on Monday in the intra-day deal on the back of heavy volumes. The stock of commodity chemicals firm surpassed its previous high of Rs 1,629 touched on February 26, 2020. It zoomed 71 per cent from its low of Rs 980 hit on March 23 in the intra-day trade. In comparison, the S&P BSE Sensex has recovered 23 per cent during the same period.

Navin Fluorine International had re-commenced its operations of manufacturing operations at the company’s facilities at Bhestan, Gujarat and Dewas, Madhya Pradesh from April 14, 2020 after obtaining requisite permissions, as applicable, from concerned Government authorities.

In February, the company had entered into a $410 million (Rs 2,900 crore) multi-year contract with a global company for manufacture and supply of a high performance product (HPP) in the fluorochemicals space. The contract was for a period of 7 years and this product is not part of Navin Fluorine's existing product portfolio.

Navin Fluorine primarily focuses on fluorine chemistry - producing refrigeration gases chemicals inorganic bulk fluorides specialty organofluorines and offers Contract Research and Manufacturing Services (CRAMS).

For the first nine months (April-December) of the financial year 2019-20 (FY20), Navin Fluorine had posted 16 per cent year-on-year (YoY) jump in its consolidated profit before tax (PBT) at Rs 195 crore. Operational revenues during the period had increased 6 per cent to Rs 785 crore on a YoY basis. Earnings before interest, taxes, depreciation, and amortisation (Ebitda) margin improved 237 basis points to 24.8 per cent from 19.6 per cent.

The company’s growth in specialty chemicals business unit is most likely to continue with its growth momentum, according to analysts.

At 01:56 pm, the stock was up 10 per cent at Rs 1,645 on the BSE, against 1.9 per cent rise in the Sensex. The trading volumes on the counter more than doubled with a combined 700,000 shares changing hands on the NSE and BSE so far.