Synopsis: Rising temperatures are driving strong cooling demand, putting refrigerant suppliers like SRF Limited and Navin Fluorine International Limited in focus as potential beneficiaries of the ongoing heatwave trend.
India is witnessing an intense heatwave, with temperatures rising sharply across several regions and straining daily life. States like Rajasthan, Delhi, and parts of Karnataka are seeing prolonged spells of extreme heat, pushing electricity demand higher due to increased cooling needs.
This surge is impacting both households and industries, while also driving higher consumption of air conditioners and related cooling solutions. The outlook suggests continued above-normal temperatures in the short term, with IMD forecasting limited relief until pre-monsoon showers, keeping cooling demand elevated and power infrastructure under pressure, persisting across regions.
As demand for air conditioners rises, related stocks particularly companies supplying refrigerant gases and cooling solutions to the AC industry are expected to remain in focus amid strengthening seasonal tailwinds.
SRF Limited is a leading Indian chemicals company with unique, fully integrated facilities across a wide range of refrigerants and industrial chemicals. It holds domestic leadership in HFCs with a strong distribution network and significant fluorochemicals market share globally. The company is among the few global manufacturers of pharma-grade R-134a/P used in inhalers and ranks among the top five producers of key fluorochemical products worldwide.
With the market capitalization of Rs. 75837 Crores, the shares of SRF Ltd were trading at around Rs. 2559 per share which is 23 percent discount from its 52 weeks high of Rs. 3319 per share and is trading at a P/E of 41 whereas industry P/E stands at 19
Revenue from operations has increased from Rs. 3491 Crores to Rs. 3713 Crores, up 6.3 percent. Operating profit has increased from Rs. 620 Crores to Rs. 780 Crores, up 25 percent and net profit has increased from Rs. 271 Crores to Rs. 433 Crores, up 60 percent.
Navin Fluorine International Limited:
Navin Fluorine International Limited is a leading Indian fluorochemicals company with strong presence across refrigerants and specialty chemicals. The pricing environment for HFCs remains constructive, supporting growth. Its AHF capex has been commissioned with commercial supplies underway. The company is also expanding capacity, with additional HFC capacity of up to 15,000 MTPA of R-32 on track for commissioning by Q3 FY27, strengthening its position in the refrigerant segment.
With the market capitalization of Rs. 34,693 Crores, the shares of Navin Fluorine International Limited were trading at around Rs. 6761 per share which is 6.2 percent discount from its 52 weeks high of Rs. 7208 per share and is trading at a P/E of 51.9 whereas industry P/E stands at 28.9
Revenue from operations has increased from Rs. 701 Crores to Rs. 938 Crores, up 33.8 percent. Operating profit has increased from Rs. 179 Crores to Rs. 321 Crores, up 79 percent and net profit has increased from Rs. 95 Crores to Rs. 213 Crores, up 124 percent
Chemplast Sanmar Limited:
Chemplast Sanmar Limited is a key Indian chemicals manufacturer with expertise in refrigerant gases and fluorination chemistry. It began refrigerant operations at Mettur, producing HCFCs under the Mettron brand with strong domestic presence. The company is among the early producers of refrigerants and chloromethanes in India, with chloroform used as input for R-22 production. Supported by rising room AC demand, it benefits from attractive project economics and a growing market.
With the market capitalization of Rs. 3629 Crores, the shares of Chemplast Sanmar ltd were trading at around Rs. 230 per share which is 52 percent discount from its 52-week high of Rs. 478 per share and is trading at a D/E of 0.97
Revenue from operations has decreased on a yearly basis from Rs. 1058 Crores to Rs. 835 Crores, down 21 percent. Operating profit has turned into an operating loss of Rs. 57 Crores from a profit of Rs. 32 Crores and net loss has widened from Rs. 49 Crores to Rs. 119 Crores.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
