SRF - Recovery In Sight During FY25: Motilal Oswal

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Motilal Oswal Report

Despite challenges in FY24, SRF Ltd. anticipates a healthy growth in FY25, driven by strategic investments and capacity expansions. The company targets improved performance across segments, focusing on market recovery, innovation, and operational efficiencies to sustain profitability.

The chemicals business (fluorochemicals and specialty chemicals) is expected to grow 20% YoY in FY25, with major improvements likely from H2 FY25. Conversely, Technical Textiles would witness a moderate growth in FY25. The packaging business is likely to remain under pressure in the medium term; however, marginal improvement is expected in FY25.

We expect SRF to clock a revenue/Ebitda/Adjusted profit after tax compound annual growth rate of 16%/22%/24% over FY24-26.

We reiterate our Neutral rating on the stock with our SoTP-based target price of Rs 2,140, owing to its rich valuations.

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Motilal Oswal SRF Annual Report Update.pdf

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