SRF shares rise 1% as company commissions Rs 536 crore aluminium foil manufacturing facility

SRF commissions aluminium foil manufacturing facility at a cost of Rs 536 crore.

Shares of SRF Ltd saw a nearly 1 percent increase in early trade on January 2, following the commissioning of an aluminum foil manufacturing facility, SRF Altech Limited, at a cost of Rs 536 crore. At 9:35 am, the SRF stock was trading at Rs 2,484 apiece on the NSE.

SRF established a wholly-owned subsidiary named SRF Altech to build a manufacturing facility for producing aluminum foil. The company successfully commissioned this facility, which has now been capitalised at a cost of Rs 536 crore. This move represents SRF's strategic expansion into aluminum foil manufacturing. The subsidiary's setup and operational status align with SRF's broader initiatives for diversification and growth.

Follow our live blog for all the market action

With an investment of Rs 536 crore, SRF demonstrates a significant commitment to this venture, signaling confidence in the potential of the aluminum foil market. This development not only strengthens SRF's position in the industry but also reflects its proactive approach to exploring new avenues for business and staying ahead in a competitive market. As detailed by the company in an official filing with the exchanges on January 1.

SRF Stock call: Check brokerage view, target price

Brokerage firm JM Financial in a recent report has given a ‘buy’ rating to the SRF stock with a 12-month target price of Rs 3,040 per share. Thus signifying a 28.4 percent upside from the current market price. The report further stated that, “Our recent interaction with SRF’s management during its analyst day gave us insights on the progress of company’s on-going growth plans along with long-term opportunities in various sub-segments the company operates in.”

SRF Stock performance

SRF stock has given a return of 8.26 percent over the last six months. The benchmark Nifty50 index has given a return of 12.47 percent over the same duration.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.