Emkay Global Financial’s research report on SRF
as we believe the worst is behind for all businesses of SRF and, going forward, we should see a) gradual pick up in specialty chemicals driven by stabilization of existing products and incremental contribution from newer products (largely Active Ingredients), b) firming up of refrigerant gas prices globally, led by increase in pricing in China and phase down-led cuts in some geographies, and c) improvement in the packaging films business, led by narrowing of the demand-supply gap across BOPP and BOPET over the next 2- 3 years. SRF is best placed—with capex ready in the specialty chemicals business and a complete basket of refrigerant gases—to garner benefits of the agchem cycle turning around and improving refrigerant prices globally.
Outlook
We re-iterate BUY on SRF with revised SoTP-based TP of Rs3,250 (rollover to Mar-27E; up by 4.8%).
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SRF – 27022025 – emkay
