Motilal Oswal's research report on SRF
SRF reported better-than-expected operating performance (24.5% EBITDA margin of v/s est. 19.8%), largely supported by healthy margin expansion in the chemical business (280bp YoY to 32%). Revenue/EBIT from technical textile (down 21%/70% YoY) and packaging business (down 6%/53% YoY) were adversely impacted by the weak demand scenario.
Outlook
We maintain our FY23E/FY24E/F25E earnings and reiterate our Neutral rating on the stock, owing to its rich valuation, which has been priced into the nearterm upside.
For all recommendations report, click here
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