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.
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.
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
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.