Navin Fluorine gains after board OKs capex plan

Navin Fluorine International advanced 2.97% to Rs 934.90 after the company announced that it plans to invest over Rs 450 crore over the next 3-4 years in new project at Dahej, Gujarat.

The stock traded in the range of Rs 921.05 and Rs 939.60 so far during the day.

Navin Fluorine International is planning a capital expenditure (capex) program at Dahej (Gujarat) through a wholly-owned subsidiary with an estimated aggregate capital outlay of over Rs 450 crore over the next 3-4 years.

The board of directors has initially approved capital expenditure of approximately Rs 90 crore for site development and related infrastructure on approximately 74 acres of land for greenfield projects at Dahej (Gujarat) through a wholly owned subsidiary, to be incorporated, details of which are annexed.

The said capital expenditure will be funded by the company out of its internal accruals. The development of the infrastructure will enable the company to set up various future greenfield projects in fluorochemicals.

Each of these projects will be separately approved by the board over a period of time and we shall update all in the due course. The company currently has manufacturing units at Surat (Gujarat) and Dewas (Madhya Pradesh). The announcement was made post trading hours yesterday, 12 December 2019.

On a consolidated basis, the company's net profit rose 27.1% to Rs 47.34 crore on a 7.7% increase in net sales to Rs 272.94 crore in Q2 September 2019 over Q2 September 2018.

Navin Fluorine International (NFIL) is one of the manufacturers of speciality fluorochemicals.

On the technical front, the stock's RSI (relative strength index) stood at 64.61. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

The stock was currently trading above its 50-day moving average (DMA) placed at Rs 840.52 and its 200 DMA placed at Rs 725.38.

Powered by Capital Market - Live News