Incorporated in 1970, SRF started with nylon cord tyre and thereafter diversified into refrigerant gases, speciality chemicals and packaging film among others.
Sales growth in line with estimates led by chemicals while margins were below expectations due to cost pressure in packaging and technical textiles divisions.
The stock appreciated at 47% CAGR in last three years.
We value SRF on SOTP to arrive at a target price of
₹ 2550/share (earlier ₹ 2900/share).
Besides SRF, in our chemical coverage, we also like Neogen Chemical.
|Particulars||FY20||FY21||FY22||5 Year CAGR(FY17-FY22)||FY23E||FY24E||FY25E||3 Year CAGR (FY22-FY25E)|
|EBITDA Margins (%)||20.2||25.5||25.5||0.0||22.2||23.3||25.0||0.0|
|Adj. EPS (₹)||34.3||40.3||63.5||-||58.3||73.6||94.7||-|
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