SRF trades higher after Rs 317-crore gas capacity expansion

SRF commissions fluorocarbon refrigerant gas capacity expansion project at cost of Rs 317 crore at Dahej.

Shares of SRF Ltd jumped nearly 1 percent in early trade on January 1 after the commissioning of a fluorocarbon refrigerant gas capacity expansion project at a cost of Rs 317 crore in Dahej, Gujarat. At 9:57am, the SRF stock was trading at Rs 2497.24 on the NSE.

SRF announced the completion of its fluorocarbon refrigerant gas capacity expansion project (HFC) on December 30. The project, approved by the board in July 2021, cost Rs 317 crore. This initiative is aimed at raising the production capacity of the refrigerant gas and integrating supply chains into the project.

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By doing so, the company is ensuring a more stable supply chain network. The commissioning of the project signifies its successful implementation, allowing SRF to enhance its capabilities in producing and supplying fluorocarbon refrigerant gas as elaborated in the filing with BSE on December 30, 2023.

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 3040 per share, signifying a 28.4 percent upside from the current market price.

“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,” the report said.

Stock performance

The SRF stock has given a return of 8.97 percent over the last six months. The benchmark Nifty50 index has given a return of 12.47 percent over the same duration.

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