Navin Flourine reacts well

Navin Flourine, after a long time, is in the limelight today. The stock has shown a volume surge of almost 1.5 times, with the stock briefly breaching the upper circuit filter at Rs.622.65.

The stock is in news today – it has entered into a JV with Piramal Enterprises to develop, manufacture and sell speciality fluorochemicals with specific focus on applications in healthcare. In the first phase of development, the JV is expected to invest around Rs 120 crore in India.  In this JV, Piramal will hold 51% stake, balance held by Navin. Given the rising significance of fluorine in life sciences, for Piramal this makes a perfect synergistic move and for Navin, it is a big move ahead.

Navin Fluorine is a part of the Arvind Mafatlal group and it has been in the business of fluorochemicals since 1967. It has three segments of business - refrigeration gases, Chemicals/Bulk Fluorides and Specialty Organofluorines .  The company has a tough Q1FY15, with its net profit falling 37% (YoY) at Rs.8.5 crore on a 10% rise in total income at Rs.134 crore.