Srf's target Rs 2655: IIFL Securities's Top Stock to Buy Today
On March 26, IIFL Securities maintained a "buy" recommendation on SRF shares with a target price of Rs 2,655. The brokerage firm noted that the company's growth momentum is expected to continue, driven by strong demand for its specialty chemicals and technical textiles businesses. IIFL Securities also highlighted the company's strong balance sheet and healthy margins as factors supporting its bullish outlook. The current market price of SRF shares is Rs 2,594, indicating a potential upside of approximately 2.3% to the target price.
About Srf:
SRF Limited (SRF) is a leading manufacturer of specialty chemicals, advanced materials, and engineered systems in India. The company offers a wide range of products across various industries, including automotive, aerospace, energy, healthcare, and packaging. SRF operates through four main divisions: Chemicals, Advanced Materials, Engineered Systems, and Lubricants. The Chemicals division produces intermediates for dyes and pharmaceuticals, while the Advanced Materials division focuses on fluorochemicals, polymers, and graphite electrodes. The Engineered Systems division offers customized equipment and solutions for industries such as chemical processing and power generation. The Lubricants division produces a range of specialty lubricants for various applications. SRF has a strong presence in both domestic and international markets, with a global footprint across 18 countries. The company has a market capitalization of approximately ₹9,000 crores as of June 2023.
52 Week Price Trend:
At its current market price (CMP) of Rs. 2594, SRF stock finds itself within a tight trading range, hovering between its 52-week high of Rs. 2636.65 and its 52-week low of Rs. 2040. This indicates a period of relative price stability, with limited upside or downside potential in the short term. Investors monitoring the stock should observe whether it can break out of this range for any significant price movement in either direction.
Stratzy's MOST Analysis:
SRF holds a BBB rating according to Stratzy's MOST framework, indicating that it carries a Medium Fundamental Risk. This assessment is based on the company's performance in terms of Management, Outlook, Safety, and Trend. SRF's strong management, positive outlook, adequate safety measures, and stable trend contribute to its overall rating. This indicates that SRF has a balanced risk profile, with some areas requiring improvement to achieve higher ratings.
Company's Fundamentals:
SRF (NSE: SRF) is a specialty chemicals company listed on the National Stock Exchange (NSE) of India. Its current stock Price to Earnings (PE) ratio of 48.21 indicates that investors are willing to pay a significant premium for each rupee of earnings. The Price to Book (PB) ratio of 6.56 suggests that the company's market value is 6.56 times its book value, implying that investors value its assets and growth prospects. However, the low Dividend Yield of 0.3% indicates that SRF does not distribute a significant portion of its profits as dividends, potentially limiting its attractiveness for income-oriented investors.
Fundamental and Technical information provided in this blog were last updated on 26 Mar, 2024
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