Buy SRF; target of Rs 315: Motilal Oswal

Motilal Oswal's research report on SRF

SRF’s 3QFY21 operating performance was robust on the back of a margin expansion seen across segments (on a YoY basis). Specialty Chemicals drove overall revenue in the Chemicals segment as the Fluorochemicals business revenue remained flat YoY. On a QoQ basis, EBIT margin moderated (-310bp QoQ) in the Packaging segment, but expanded 340bp in Technical Textiles. n We largely maintain our FY21/FY22/FY23 estimates as operating performance was broadly in line with our estimates. Maintain Buy.

Outlook

We value the stock on a SoTP basis to arrive at our TP of INR6,315. Maintain Buy rating.

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