Polymer maker SRF shares rise as brokerages turn positive on outlook

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.