Motilal Oswal rates SRF as buy with ₹3,000 target
Business
Motilal Oswal thinks SRF is worth a look, giving it a "buy" rating and aiming for a ₹3,000 share price.
SRF's EBIT grew 30% YoY in 2Q FY27, thanks to big gains in technical textiles (up 73%) and performance films and foil (up 71%).
SRF margins dip amid higher costs
SRF did see its margins dip a bit due to higher raw material and shipping costs, even though its chemicals business EBIT grew by 10%.
To keep things moving forward, SRF is focusing on cost optimization and growth fueled by refrigerant gasses and the ramp-up of fluoropolymers.
While Motilal Oswal trimmed its future earnings expectations slightly, it still believes SRF's growth plans will help the company bounce back stronger.