Higher chemical prices, ongoing expansion and demand to support SRF stock

While medium term prospects remain strong, the upsides after recent rally are limited

The stock of India's largest specialty chemicals company SRF hit its all-time highs on Thursday on expectations of strong March quarter results, higher realisations from price hikes and  ongoing expansion which should help sustain revenue growth going ahead. The stock, which has nearly doubled in value over the last year, is also one of the probables to be included in the MSCI Standard index in the upcoming semi-annual review in May.

Higher prices of chemicals on account of supply disruptions as well as end user demand is positive for the specialty chemicals and packaging segments. Rohit Sinha of Emkay Research