Tata Chemicals, Clean Science, Navin Fluorine, PI Industries, SRF: Buy, sell or hold?

The chemical sector, particularly companies involved in refrigerant gases, is poised for a strong showing in CY26, driven by favourable demand-supply dynamics and firm pricing trends. Brokerage firm JM Financial, in its latest sector update, has highlighted that the ref gas tailwinds are likely to persist, benefiting key Indian manufacturers.

According to JM Financial, the global supply situation for hydrofluorocarbons (HFCs) remains tight, primarily because China—which controls over 70 per cent of global capacities—has kept its quota allocations largely constant for the upcoming year.

JM Financial observed that China’s Ministry of Ecology and Environment has maintained the overall HFC quota with only "minimal internal adjustment" among individual gases. This restriction on supply, coupled with steady demand, is expected to keep prices elevated.

Analysts at JM Financial believe that with China accounting for a majority of global capacity and its quotas remaining flat, "ref gas prices are expected to remain elevated in the near future." The brokerage also downplayed concerns regarding the removal of Chinese subsidies for home appliances, terming the potential impact on demand as "insignificant."

Among the refrigerant gas players, JM Financial has identified SRF and Navin Fluorine as top picks. The brokerage expects SRF to be the ‘biggest beneficiary’ of the higher pricing environment, given its presence across the entire basket of HFCs, including HFC-32, HFC-125, and HFC-134a.

Navin Fluorine is also preferred owing to its aggressive growth path and major growth drivers across segments, it added. Gujarat Fluorochemicals was also mentioned as a beneficiary of higher refrigerant gas prices in the report's commentary, though its valuation rating remains cautious.

Brokerage Recommendations

SRF Rating: Buy | Target Price: Rs 3,510

Navin Fluorine Rating: Buy | Target Price: Rs 6,685

Tata Chemicals Rating: Add | Target Price: Rs 945

Clean Science Rating: Buy | Target Price: Rs 1,195

Deepak Nitrite Rating: Buy | Target Price: Rs 2,005

Aether Industries Rating: Buy | Target Price: Rs 1,075

Acutaas Chemicals Rating: Add | Target Price: Rs 1,750

PI Industries Rating: Reduce | Target Price: Rs 3,465

Gujarat Fluorochemicals Rating: Reduce | Target Price: Rs 3,650

Fine Organic Rating: Reduce | Target Price: Rs 4,225

Galaxy Surfactants Rating: Reduce | Target Price: Rs 2,185

PCBL Chemical Rating: Reduce | Target Price: Rs 350

Archean Chemicals Rating: Reduce | Target Price: Rs 550

Paradeep Phosphates Rating: Reduce | Target Price: Rs 175

Anupam Rasayan Rating: Sell | Target Price: Rs 800

Tatva Chintan Pharma Chem Rating: Sell | Target Price: Rs 820