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Last Updated : Sep 18, 2018 04:05 PM IST | Source: Moneycontrol.com

Buy SRF; target of Rs 2128: Geojit

Geojit is bullish on SRF has recommended buy rating on the stock with a target price of Rs 2128 in its research report dated June 07, 2018.

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Geojit's research report on SRF


Established in 1970, SRF Ltd is engaged in the manufacturing of industrial and  specialty intermediates. SRF’s diversified b usiness portfolio consists of Technical  Textiles, Fluorochemicals, Specialty Chemicals, Packaging Films and Engineering  Plastics. SRF clocked healthy consolidated revenue growth of ~22% YoY in Q4FY18  underpinned by robust performance of packaging and chem icals businesses. EBITDA grew by 26% YoY mainly driven by better performance across  segments. EBIT margin of packaging, chemicals & textiles businesses rose by  405 bps, 90 bps & 354 bps respectively.  We factor consolidated revenue CAGR of 12% over FY18 - 20E driven by its  capacity addition drive and expected recovery in agrochemical demand. Further robust growth outlook in speciality chemicals & packaging businesses  will translate into 420bps expansion in EBITDA margin over FY18 - 20E.


Outlook


Hence, we upgrade the sto ck to ‘BUY’ from ‘HOLD’ earlier with a revised TP  of Rs. 2, 128 based on 1 8 x FY20E EPS


For all recommendations report, click here


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First Published on Jun 8, 2018 03:57 pm
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