SRF gets new 'Buy' rating from Antique; check target, outlook here

Antique assigned a 'Buy' rating for SRF with a target price of ₹3,540 per share, a potential upside of 16 per cent

Shares of SRF received a coverage initiation from Antique Stock Broking, given the company's long-term growth prospects in its fluoro-speciality/polymer and refrigerant gas businesses.

 

The domestic brokerage firm assigned a 'Buy' rating to the SRF stock with a target price of ₹3,540 per share, a potential upside of  16 per cent from Tuesday's close. 

 

As a leader in refrigerant gases, SRF has diversified and established a niche in the fast-growing, high-margin fluoro-speciality segment, Antique said. "SRF's Specialty Chemicals Business (SCB) will continue to remain the company's growth driver."

 

Along with its manufacturing advantage in India, the company's strong research and development capabilities remain key strengths, expected to drive long-term growth in its fluoro-speciality, polymer, and refrigerant gas businesses.

 

 

The brokerage highlighted SRF's integrated operations at its Dahej facility, which combine expertise in fluorination with high-quality manufacturing, while maintaining strong safety, health, environmental, and corporate governance standards.  ALSO READ | Ireda shares rise as Q2 profit jumps 42% YoY; check details here 

Antique expects SRF's revenue and profit after tax (PAT) to grow at a compounded annual growth rate (CAGR) of 15 per cent and 36 per cent, respectively, during the financial years 2025 to 2028, compared with 14 per cent and 16 per cent over 2005 to 2025. SRF’s three key business segments, Chemicals Business, Technical Textile Business, and Packaging Films Business, is expected to record revenue CAGRs of 18 per cent, 5 per cent, and 14 per cent, respectively, during the FY25 to 28.

 

The growth outlook is supported by recovery in the global agrochemical industry, new product launches, and capacity ramp-up in the fluoro-chemical business, it added. 

 

Antique said it expects growth in SRF’s specialty chemical business to peak in the coming period, supported by an improvement in the Packaging Films Business, driven by a higher share of value-added products. The brokerage added that strong capacity additions, particularly in the chemical business, are likely to deliver meaningful results over the next few years.

SRF Q1FY26 recap

The company reported a jump in consolidated net profit to ₹432.3 crore in Q1FY26, up from ₹252 crore in the year-ago period. The upbeat numbers were backed by healthy performance in the Chemicals and Performance Films & Foil businesses, despite some pockets of weakness in Technical Textiles and Other segments.

 

Revenue for the quarter rose 10.3 per cent Y-o-Y to ₹3,819.6 crore, while Ebitda surged 37.8 per cent Y-o-Y to ₹831 crore, improving margins from 17.4 per cent to 21.7 per cent. The margin expansion reflects better operating leverage, strategic pricing, and an improved product mix.