Bull of the Day: Stock that rose 81% in 9 months

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Bull of the Day: Stock that rose 81% in 9 months

SRF gained 5.28% or Rs 17.80 to close at Rs 354.70. It touched an intraday high of Rs 370 and an intraday low of Rs 330. There were pending sell orders of 365 shares, with no buyers available. The total traded volumes were of 1,049,250 shares. The share rose 81.02% in last 9 months.

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Midcap company SRF gained 5.28% or Rs 17.80 on Thursday to close at Rs 354.70. It touched an intraday high of Rs 370 and an intraday low of Rs 330. There were pending sell orders of 365 shares, with no buyers available. Meanwhile, the total traded volumes were of 1,049,250 shares.

However, the interesting bit is that the share has risen 81.02% in last nine months.

Why the run up?

SRF Limited, a multi-business entity engaged in the manufacture of chemical based industrial intermediates, posted a net profit after tax (PAT) of Rs 171 crore during Q3 of 2010-11 recording a 350% increase over the corresponding period last year (CPLY). The company's revenue during October-December'10 improved by 72% to Rs 844 crore as against Rs 490 crore during CPLY.

The improvement in SRF's financial performance is attributable to the improved performance in most businesses.

For the first nine months of the current financial year, SRF recorded a PAT of Rs 347 crore as against Rs 199 crore, achieving a growth of 74% over CPLY. The PAT figure of the company during the first three quarters of 2010-11 has exceeded the company's full year PAT for 2009-10 by Rs 38 crore, which was recorded at Rs 309 crore. The revenue during the nine months of 2010-11 increased by 46% at Rs 2211 crore as against Rs 1513 crore during CPLY and Rs 2194 crore for the full financial year of 2009-10.

Consistent performer:

Speaking to CNBC-TV18, on January 13, 2010, Ashu Madan of Religare said that SRF has been showing a lot of strength of late. "If you look at past few trading sessions, when it started its upmove between Rs 325 to 330, it went up to Rs 365-370 and again with these knee-jerk reaction in the market or not only knee-jerk reaction, sharp reactions in the market it again come down to level of Rs 325-330 and we saw some activities."  He had given a price target of Rs 355 on SRF.

The company's trailing 12-month (TTM) EPS was at Rs 53.62 per share. The stock's price-to-earnings (P/E) ratio was 6.57. The latest book value of the company is Rs 200.07 per share. At current value, the price-to-book value of the company was 1.76. The dividend yield of the company was 3.98%.

The company touched its 52-week high Rs 444.30 and 52-week low Rs 188.45 on 09 Nov, 2010 and 22 Mar, 2010, respectively.

Currently, it is trading -20.17% below its 52-week high and 88.22% above its 52-week low. Its market capitalisation stands at Rs 2,146.06 crore.

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