IIFL Securities's Stock Pick Today: Buy Srf with Target Rs 2675
IIFL Securities issued a buy recommendation for SRF on April 1st, with a target price of Rs 2675. This represents an upside potential of approximately 2.6% from the current market price of Rs 2607.75. The positive outlook is based on the company's strong fundamentals, including its leading position in the fluorochemicals industry, diversified product portfolio, and focus on research and development. The company is also expected to benefit from the growing demand for its products in various industries, such as aerospace, automotive, and pharmaceuticals.
About Srf:
SRF Limited is an Indian multinational conglomerate headquartered in Gurgaon, Haryana. It is a leading manufacturer of industrial and specialty chemicals, packaging films, and technical textiles. The company has a strong presence in global markets and operates through four main business segments: Chemicals, Packaging Films, Technical Textiles, and Energy. SRF has a wide range of products, including fluorochemicals, specialty chemicals, polymers, films, yarns, and fabrics. The company's products find applications in various industries such as automotive, textiles, electronics, construction, and healthcare. SRF is listed on the National Stock Exchange of India and is a part of the BSE 500 index.
52 Week Price Trend:
SRF's current market price (CMP) of Rs. 2607.75 is approaching its 52-week high of Rs. 2636.65, indicating a bullish trend. The stock has been trading within this range for several months, consolidating its gains. The 52-week low price of Rs. 2040 represents a significant support level, suggesting that any further dips could trigger buying interest. Investors may want to monitor the stock closely as it navigates this key resistance zone. A breakout above the 52-week high could signal further upside potential, while a breakdown below the support level could indicate a correction.
Stratzy's MOST Analysis:
Stratzy's MOST framework evaluates SRF's management, outlook, safety, and trend to assign a BBB rating. This rating indicates a medium level of fundamental risk, as per the ratings scale where A indicates low risk, B indicates medium risk, and C indicates high risk. The BBB rating suggests that SRF's management, industry outlook, financial stability, and growth prospects are considered sound but may present some areas of concern that investors should be aware of.
Company's Fundamentals:
SRF (NSE:SRF) trades at a Stock PE of 48.21, indicating that investors are willing to pay 48.21 times the company's annual earnings per share for its stock. Its PB Ratio of 6.56 suggests that investors are paying 6.56 times the company's book value (total assets minus total liabilities) for each share, implying that the market believes SRF's assets are undervalued relative to its market capitalization. Notably, SRF's Dividend Yield of 0.3% indicates a relatively low return on dividend income, meaning investors may be valuing the company more for its growth potential than its dividend yield.
Fundamental and Technical information provided in this blog were last updated on 30 Mar, 2024
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