Buy SRF, target price Rs 3195: Yes Securities

Yes Securities has buy call on SRF with a target price of Rs 3195. The current market price of SRF is Rs 2204.

SRF, incorporated in the year 1970, is a Large Cap company (having a market cap of Rs 65555.83 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.

Investment Rationale
Continued investment towards capacity addition in chemicals business, along with introduction of new product lines in specialty chemicals and fluoropolymers are likely to maintain earnings growth CAGR of~ 20% for SRF. The brokerage maintains buy on the counter.

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.