Navin Fluorine tanks 10% as MD Radhesh Welling resigns

In exchange filing, NFIL said Mr. Radhesh R. Welling has tendered his resignation as the Managing Director and a Director on the Board of the Company for personal reasons.

Shares of Navin Fluorine International (NFIL) tanked 10 per cent to Rs 3,925.60 on the BSE in Friday's intraday trade after the company's Managing Director, Radhesh R. Welling, resigned from the post.

The stock of the commodity chemicals maker was quoting at its lowest level since February 2023. It had hit a 52-week low of Rs 3,766.45 on January 27, 2023.

In an exchange filing, NFIL said Radhesh R. Welling has tendered his resignation as the managing director and a director on the Board of the company for personal reasons. His resignation was accepted by the Board at the meeting held on Thursday, September 28.

Welling will be relieved from the services of the company effective from the close of business hours on December 15, 2023, NFIL said.

With the objective of further strengthening the Board, the board of directors has approved the appointment of Sudhir R. Deo as an Additional Director of the company with effect from September 28, 2023 pursuant to the recommendation of the Nomination and Remuneration Committee.

Meanwhile, shares of NFIL have underperformed the market in recent past due to weak earnings. In the past six months, the stock has declined 7 per cent as compared to 13.3 per cent rally in the S&P BSE Sensex. While in the past one year, it has dropped slipped 12 per cent as against 16.4 per cent gain in the benchmark index.

NFIL is engaged in the manufacturing of fluorinated specialty chemicals. As on June 30, 2023 the promoter group held 28.81 per cent equity stake in the company. NFIL operates in three major business segments, viz. HPP (High Performance Products), CDMO (Contract Development and Manufacturing Organisation) and Speciality Chemicals.

It operates one of the largest integrated fluorochemical complexes in India with a strong focus on research and development. NFIL’s presence is spread across domestic and export markets including Europe, USA, South-east Asia and Middle Eastern countries.

"NFIL has strong revenue visibility in the CDMO and Specialty Chemical segment, supported by its capex execution, strong track record of receiving international orders, and partnerships. We expect improved margins in its traditional portfolio, strong execution, and judicious capex to support future growth," said analysts at Axis Capital.