Navin Fluorine shares hit lower circuit today – here’s why!

Navin Fluorine International Limited, a prominent player in the Indian chemical space, is engaged in the production of refrigeration gases, inorganic fluorides, and specialty organofluorines, and offers contract research and manufacturing services. Shares fell by over 14% today.

The stock opened the day at Rs 4,030 per share, representing a 7.6% decrease from the previous day’s closing price of Rs 4,361.75 per share on the BSE.

Furthermore, it reached a lower circuit limit of 10% early in the morning trading session today. After hitting the lower circuit, the stock experienced a decline of over 14%, and it is currently trading at Rs 3,775, marking a 13.44% decrease from its previous day’s closing price.

What caused the stock to drop significantly during the market opening today? Well, according to the latest update, the Managing Director of the company has resigned.

As per the details, Radhesh R. Welling has decided to step down from his role as the Managing Director and Director on the Company’s Board due to personal reasons. Moreover, the Board of Directors has accepted his resignation at the company’s meeting.

Mr. Welling will be stepping down from his role at the Company effective at the close of business hours on December 15, 2023. He will continue to serve the Company to facilitate a smooth transition. The Company will appoint a senior professional to lead the organization as Managing Director in due course. Mr. Vishad P. Mafatlal, Executive Chairman, will oversee the operations of the Company and will be supported by the leadership team, as per the press release.

Stock Chart (Weekly Time Frame):

Technically, the stock had been trading within an upward channel for quite some time, dating back to May 2021. It consistently found support at the lower boundary of this channel pattern and encountered resistance at the upper boundary. Unfortunately, today it broke out of the channel, but in a downward direction, marking a significant gap down.

Turning your attention to the stock’s performance, it has yielded a negative return of 16% over the past year. However, when evaluating its long-term performance, the stock has delivered an impressive return of 446% to its investors over the past five years.

Business Overview:

The company stands as a prominent producer of specialty fluorochemicals and is part of the Padmanabh Mafatlal Group, one of India’s oldest industrial conglomerates. Founded in 1967, NFIL runs one of India’s most extensive integrated fluorochemicals facilities, with manufacturing sites situated in Surat and Dahej in Western India, as well as Dewas in Central India. The company’s research and development hub, known as the Navin Research Innovation Center (NRIC), is based in Surat, India, according to information provided on the company’s website.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to change. Please consult an expert before making related decisions.