Polymer maker SRF shares rise as brokerages turn positive on outlook

SRF Ltd shares gain with positive outlook review from brokerages

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Shares of SRF, a maker of technical textiles, chemicals, and other polymers, gained about 3 percent on February 27 after brokerage reports projected a robust outlook for its fluorochemicals and specialty chemicals businesses.

The shares of SRF are trading at Rs 2,849.70 with a gain of 2.95 percent as of 1:40 pm.

A latest note by JM Financial said that rising domestic demand for Hydrofluorocarbons, or HFCs (especially R-134a and R32) and expects India to become one of the largest HFC consumers over the next 8–10 years. It projects meaningful revenue from Hydrofluoroolefins (HFOs) by FY28, stable specialty chemicals pricing, and packaging film margins holding up or improving, going forward. JM Financial remains constructive, maintaining a Buy call with a SoTP-based target price of Rs 3,115 on SRF.

Emkay Global also reiterated its Buy on SRF and raised the SoTP-based target price to Rs 3,250, foreseeing a pickup in specialty chemicals (with existing products stabilizing and newer products ramping up), as refrigerant gas prices globally firm up, and an improvement in packaging films business. Emkay sees strong volume growth in fluorochemicals, buoyed by rising global prices for R32 and R22, and SRF is well-positioned to capitalize on the shift toward lower-GWP gases, or those with Global Warming Potential.

SRF had posted a sequential recovery in Q3FY25 even as the broader agrochemical market was still saddled with an inventory overhang. The management has hinted at a pickup in investment cycle in FY26. The capex for next fiscal is being projected about Rs 1,500-2,000 crore.

The past year saw the company's shares price reaching a 52-week high of Rs 2994.85 and a low of Rs 2088.55, with a trading volume of 5,547 shares on the BSE.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.