ICICI Direct's research report on SRF
Incorporated in 1970, SRF started with nylon cord tyres and thereafter diversified into refrigerant gases, speciality chemicals and packaging film to name a few over time. Chemical division forms 43% of overall revenue followed by packaging film (39%), technical textile (15%) and others (3%) • The company exports to more than 90+ countries. Revenue from international market constitutes 57% of overall revenue while rest is from the domestic market segment.
Outlook
We retain BUY rating on SRF on the back of 1) Sustained efforts to ride on increasing opportunities for fluoro chemicals across key industries, 2) entering into new segment of fluoropolymer PTFE and 3) visibility capex in specialty chemical segment. We value SRF on an SOTP basis to arrive at a target price of Rs 2900/share (earlier Rs 2735/share).
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.