Sharekhan recommends purchasing this manufacturer’s stock for good returns


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Target price

SRF Ltd.’s Current Market Price (CMP) is Rs. 2161. Brokerage firm Sharekhan Recommends has estimated a target price for the stock at Rs. 2430. Therefore, the stock is expected to generate a return of 12.44% over a target period of one year.

Outlook for actions
Current Market Price (CMP) Rs. 2161
Target price Rs. 2430
1 year of returns 12.44%
Business performance

Business performance

SRF Ltd. EBITDA stood at Rs. 2,145 crore in FY21, while it is expected to reach Rs. 2,510 crore in FY22. The adjusted PAT stood at Rs. 1,198 crore in FY22. fiscal year 21, while it is expected to increase by Rs. 1,438 crore in fiscal year 22. In the chemicals segment, management expects the specialty chemicals business to maintain revenue growth of 15-20% per annum over the next 3-5 years and the outlook for the fluorochemicals business on the margin / volume front has improved significantly with the recent increase in the price of HFC refrigerants.

Sharekhan comments

Sharekhan comments

Maintaining the buy rating, Sharekhan said: “The anti-dumping duties imposed by the United States on imports of HFCs from China have led to better realization and improved margin prospects for the business of refrigerants in the short to medium term … Recent improvement in TTB segment achievement / margin (given the capacity closure in China) is expected to continue and could improve further, as achievement remains below parity prices on import. The company believes that high growth in the chemical business supported by high investment intensity, a strong sustained margin for the technical textiles business and a focus on value added products (VAP) in the business of wrapping film would result in solid activity.

About the company

About the company

SRF is a chemical manufacturer, which is involved in the technical textile, coated fabrics, laminated fabrics, fluorochemicals, specialty chemicals and packaging films industries. They are present in India, Thailand, South Africa and Hungary; they serve clients in more than 75 countries around the world.

Warning

The above stock was chosen from Sharekhan’s brokerage report. Investing in stocks presents a risk of financial loss. Investors should therefore exercise caution. Greynium Information Technologies, the author and the brokerage are not responsible for any losses caused as a result of decisions based on the article.

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About Emilie Brandow

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