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SRF Q1 Review: PL Capital Stays Cautious, Cuts Target Price On Agrochemical Concerns — Buy, Sell Or Hold?

The brokerage remains cautious on SRF due to continued weakness in agrochemicals, persistent pricing pressure in specialty chemicals and expectations of softer profitability in the packaging films business from the second quarter onward.

SRF Q1 Review: PL Capital Stays Cautious, Cuts Target Price On Agrochemical Concerns — Buy, Sell Or Hold?
SRF's Q2 FY27 is expected to be softer than Q1 FY27, adds PL Capital.
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STOCKS IN THIS STORY
SRF Ltd.
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NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.

PL Capital Report

SRF Ltd. reported a strong set of numbers for the June quarter, with consolidated revenue rising 32% YoYto Rs 5,030 crore, while adjusted profit after tax surged 75.5% YoY to Rs 7,590 crore.

The performance was driven by robust growth across the packaging films, fluorochemicals and technical textiles businesses.  

Following the results, PL Capital maintained its 'Reduce' rating on the stock and revised its target price to Rs 2,482 from Rs 2,603, implying limited upside from current levels.

The brokerage remains cautious due to continued weakness in agrochemicals, persistent pricing pressure in specialty chemicals and expectations of softer profitability in the packaging films business from the second quarter onward.e

Click on the attachment to read the full report:

Pl Capital Srf.pdf
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ALSO READ: Cyient Gets Target Price Revision After Q1 Results, But IDBI Capital Retains Hold Rating — Here's Why

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