Buy SRF, target price Rs 2985: JM Financial
SRF, incorporated in the year 1970, is a Large Cap company (having a market cap of Rs 68490.44 Crore) operating in Diversified sector.
By ETMarkets.com | Updated:
ETMarkets.com
JM Financial has buy call on SRF with a target price of Rs 2985. The current market price of SRF is Rs 2330.3.
SRF, incorporated in the year 1970, is a Large Cap company (having a market cap of Rs 68490.44 Crore) operating in Diversified sector.
SRF key Products/Revenue Segments include Chemicals (Industrial), Packaging Film, Textiles, Others for the year ending 31-Mar-2022.
Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 3479.67 Crore, down -7.47 % from last quarter Total Income of Rs 3760.52 Crore and up 3.67 % from last year same quarter Total Income of Rs 3356.54 Crore. Company has reported net profit after tax of Rs 510.90 Crore in latest quarter.
The company’s top management includes Mr.Arun Bharat Ram, Ms.Bharti Gupta Ramola, Mr.Tejpreet S Chopra, Mr.Puneet Yadu Dalmia, Mr.Lakshman Lakshminarayan, Mr.Raj Kumar Jain, Mr.Yash Gupta, Mr.Pramod G Gujarathi, Mr.Kartik Bharat Ram, Mr.Ashish Bharat Ram, Mr.Vellayan Subbiah. Company has BSR & Co. LLP as its auditors. As on 31-12-2022, the company has a total of 30 Crore shares outstanding.
Agrochemicals-focused contracted specialty chemicals players are relatively better placed to weather the global slowdown storm. This is because, as per the brokerage's view, agrochemicals demand is likely to remain buoyant on account of robust growth in world oilseed production (as per USDA). At the same time, per our channel checks, ex-agrochemicals demand is likely to remain tepid over the next couple of months and is likely to recover with increase in global discretionary spend.
The only silver lining for all chemicals players currently is the continued decline in freight rates and reintroduction of export incentives from mid-Dec’22. This could help improve margins in both 4QFY23 and 1QFY24. Amid such an uncertain environment, the brokerage continues to prefer SRF in large caps and Navin Fluorine in midcaps.
Promoter/FII Holdings
Promoters held 50.53 per cent stake in the company as of 31-Dec-2022, while FIIs owned 18.31 per cent, DIIs 14.7 per cent.
SRF, incorporated in the year 1970, is a Large Cap company (having a market cap of Rs 68490.44 Crore) operating in Diversified sector.
SRF key Products/Revenue Segments include Chemicals (Industrial), Packaging Film, Textiles, Others for the year ending 31-Mar-2022.
Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 3479.67 Crore, down -7.47 % from last quarter Total Income of Rs 3760.52 Crore and up 3.67 % from last year same quarter Total Income of Rs 3356.54 Crore. Company has reported net profit after tax of Rs 510.90 Crore in latest quarter.
The company’s top management includes Mr.Arun Bharat Ram, Ms.Bharti Gupta Ramola, Mr.Tejpreet S Chopra, Mr.Puneet Yadu Dalmia, Mr.Lakshman Lakshminarayan, Mr.Raj Kumar Jain, Mr.Yash Gupta, Mr.Pramod G Gujarathi, Mr.Kartik Bharat Ram, Mr.Ashish Bharat Ram, Mr.Vellayan Subbiah. Company has BSR & Co. LLP as its auditors. As on 31-12-2022, the company has a total of 30 Crore shares outstanding.
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Investment RationaleAgrochemicals-focused contracted specialty chemicals players are relatively better placed to weather the global slowdown storm. This is because, as per the brokerage's view, agrochemicals demand is likely to remain buoyant on account of robust growth in world oilseed production (as per USDA). At the same time, per our channel checks, ex-agrochemicals demand is likely to remain tepid over the next couple of months and is likely to recover with increase in global discretionary spend.
The only silver lining for all chemicals players currently is the continued decline in freight rates and reintroduction of export incentives from mid-Dec’22. This could help improve margins in both 4QFY23 and 1QFY24. Amid such an uncertain environment, the brokerage continues to prefer SRF in large caps and Navin Fluorine in midcaps.
Promoter/FII Holdings
Promoters held 50.53 per cent stake in the company as of 31-Dec-2022, while FIIs owned 18.31 per cent, DIIs 14.7 per cent.
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