Emkay Global Financial's research report on SRF
as we believe the worst is behind for all businesses of SRF and, going forward, we should see a) gradual pick up in specialty chemicals driven by stabilization of existing products and incremental contribution from newer products (largely Active Ingredients), b) firming up of refrigerant gas prices globally, led by increase in pricing in China and phase down-led cuts in some geographies, and c) improvement in the packaging films business, led by narrowing of the demand-supply gap across BOPP and BOPET over the next 2- 3 years. SRF is best placed—with capex ready in the specialty chemicals business and a complete basket of refrigerant gases—to garner benefits of the agchem cycle turning around and improving refrigerant prices globally.
Outlook
We re-iterate BUY on SRF with revised SoTP-based TP of Rs3,250 (rollover to Mar-27E; up by 4.8%).
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
