SRF stocks shines on import curbs, growth prospects, but valuations pricey

While there are multiple positives across SRF's key segments, investors should await for a better opportunity to enter the stock

The stock of the largest specialty chemicals player in the country is up 25 per cent from the first week of March. Regulatory measures, incremental gains from new products and healthy growth prospects in its fluorochemicals space are the key positives for the stock. 

The immediate trigger has been the government’s decision to put the import of hydrofluorocarbons on the restricted list. The March 9 order, aimed at boosting domestic manufacturing (40 per cent of requirement in the segment is imported), will be beneficial for the company. This is expected to aid volumes, boost capacity utilisation and enhance realisations.