SRF - Chemicals Segment Remains The Focal Point: Systematix

Systematix Research Report

We present key takeaways from our meeting with the senior management of SRF Ltd. The discussions centered around the company’s packaging and chemical segments.

SRF is on track to become a leading chemicals player, given that the segment has been a strong focus area for the company in recent years. We are optimistic on the company's long-term strategy and growth prospects.

Reiterating 'Buy' with a revised SOTP-based target price of Rs 2,853 (earlier Rs 2,540), based on implied FY25E price/earning of 33 times (earlier 29 times) and enterprise value/Ebitda of 21 times (earlier 18.5 times). We keep our FY24/25E estimates unchanged.

We have assigned 25 times EV/Ebitda to chemicals (earlier 22 times) and eight times EV/Ebitda to the technical textile and packaging businesses (unchanged).

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