Strong outlook to support SRF stock as Dec qtr show beats all estimates

Q3 performance was led by strong demand/realisations in the chemicals business

The country’s largest specialty chemical company SRF is benefiting from twin triggers of increased demand and higher pricing. This was reflected in the December quarter performance which beat estimates across all parametres. Led by a 58 per cent rise each in sales of chemicals and polymer and packaging segments, consolidated revenues grew 56 per cent y-o-y.

The incremental gains from the chemicals business which accounts for 43 per cent of revenues came from both exports and domestic markets and an expanding product portfolio. Growth in the business was led by refrigerants, specialty chemicals and chloromethanes, with refrigerants benefiting from higher