Agencies has buy call on SRF with a target price of Rs 3000. The current market price of . is Rs 2623.7 Time period given by analyst is one year when SRF Ltd. price can reach defined target. SRF Ltd., incorporated in the year 1970, is a Large Cap company (having a market cap of Rs 75391.72 Crore) operating in Diversified sector.
SRF Ltd. key Products/Revenue Segments include Chemicals (Industrial), Packaging Film, Textiles, Others for the year ending 31-Mar-2022.
Financials
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 3904.57 Crore, up 9.78 % from last quarter Total Income of Rs 3556.65 Crore and up 43.91 % from last year same quarter Total Income of Rs 2713.18 Crore. Company reported net profit after tax of Rs 608.00 Crore in latest quarter.
Investment Rationale
Key takeaways – 1) chemicals capex of ~ INR 120-130bn over the next 5 years, 2) goal to grow the chemicals business at 20% while maintaining 20% RoCE, 3) accelerate growth of the pharma piece to more than 30%, 4) take the fluoropolymer revenue contribution to USD 150-200mn over the next 5 years, and 5) grab the incremental opportunities in HFOs, electronic and battery chemicals. This well-laid-out growth plan reinforces our positive bias on the stock. It maintains BUY with an unchanged Sep’23 TP of INR 3,000 (SoTP based).
Promoter/FII Holdings
Promoters held 50.73 per cent stake in the company as of 30-Jun-2022, while FIIs owned 19.21 per cent, DIIs 9.36 per cent.
SRF Ltd. key Products/Revenue Segments include Chemicals (Industrial), Packaging Film, Textiles, Others for the year ending 31-Mar-2022.
Financials
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 3904.57 Crore, up 9.78 % from last quarter Total Income of Rs 3556.65 Crore and up 43.91 % from last year same quarter Total Income of Rs 2713.18 Crore. Company reported net profit after tax of Rs 608.00 Crore in latest quarter.
Investment Rationale
Key takeaways – 1) chemicals capex of ~ INR 120-130bn over the next 5 years, 2) goal to grow the chemicals business at 20% while maintaining 20% RoCE, 3) accelerate growth of the pharma piece to more than 30%, 4) take the fluoropolymer revenue contribution to USD 150-200mn over the next 5 years, and 5) grab the incremental opportunities in HFOs, electronic and battery chemicals. This well-laid-out growth plan reinforces our positive bias on the stock. It maintains BUY with an unchanged Sep’23 TP of INR 3,000 (SoTP based).
Promoter/FII Holdings
Promoters held 50.73 per cent stake in the company as of 30-Jun-2022, while FIIs owned 19.21 per cent, DIIs 9.36 per cent.
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