SRF shares surge 4% to 52-week high after upbeat management outlook

SRF shares have surged nearly 25 percent in the last one month.

Shares of SRF surged over 4 percent in trade on January 30 and hit a 52-week high of Rs 2,786.90, buoyed by an upbeat management commentary following its Q3 results.

SRF expects a strong recovery in Q4, with improved demand in both its specialty chemicals and fluorochemicals segments. The specialty chemicals segment faced some inventory overhang among agrochemical customers, but a gradual demand recovery is underway.

The company anticipates robust agrochemical demand, marking a significant improvement over Q3, while its product pipeline remains strong. Additionally, the fluorochemicals segment is set to perform better, driven by higher hydrofluorocarbon volumes.

At 1.08 pm, shares of SRF were trading at Rs 2,774.20 on the NSE. With gains in today's session, the stock has also come in close quarters with its record high of Rs 2,865.

The management also remains cautiously optimistic about the packaging films business, expecting the demand-supply imbalance to ease compared to previous quarters. While SRF maintained a strong presence in the packaging industry, aluminum foil margins were under pressure due to lower-cost imports from China and Thailand. Chairman and MD Ashish Bharat Ram expressed confidence in finishing the fiscal on a reasonably strong footing.

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SRF reported a 7 percent year-on-year growth in net profit to Rs 271 crore in Q3 FY25, compared to Rs 253.4 crore in the same period last year. Revenue rose 14.4 percent on year to Rs 3,491.3 crore from Rs 3,053 crore in the year ago period.

However, EBITDA margin contracted to 17.8 percent in Q3, down from 18.5 percent in the base period.