Shares of SRF Ltd. snapped a two-day losing streak after Morgan Stanley bet on the company's ambitious capex plan focused on the chemicals segment.
Morgan Stanley reiterated its 'overweight/in line' rating on the stock, and maintained its target price at Rs 2,757 apiece—an implied return of 5.99%.
The company, in its investor meet, announced an investment plan of $2 billion over the next five years, of which 80% will be focused toward chemicals. Morgan Stanley said capex guidance on chemicals was a key stock price driver in the last two years.
SRF also announced plans in agrochemicals, electric vehicles and battery chemicals segments as well as exploring opportunities beyond PTFE in fluoropolymers.
Shares of SRF rose nearly 2% to Rs 2,640 apiece as of 12:30 p.m., while the Nifty 50 gained 0.18%.
Of the 30 analysts tracking the company, 25 maintain a 'buy', four suggest a 'hold' and one recommends a 'sell', according to Bloomberg data. The 12-month consensus price target implies an upside of 4.8%.
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