SRF upgraded to Hold by Prabhudas Lilladher with Rs 2,349 target

what happened

According to TradingView, citing a Prabhudas Lilladher research report, SRF's consolidated revenue in Q2 FY27 reached INR49bn. That is 35% higher than a year earlier but 3% lower than in the previous quarter. The Chemicals segment grew 25% year on year, led by Fluorochemicals on higher volumes and better realizations, while Specialty Chemicals stayed weak due to subdued agrochemical demand and oversupply from Chinese producers.

Performance Films and Foil revenue rose 51% year on year, but segment EBIT margin fell to 9.7% from 17.3% in Q1 as the benefit from low-cost inventory did not repeat. Technical Textiles grew 25% year on year. The company also announced a INR6bn investment in a 12,000 mtpa aluminium foil plant, with Phase I expected by September 2028.

The brokerage remains cautious but raised its rating from Reduce to Hold after the shares fell sharply. Its SOTP-based target price is Rs 2,349.

why it matters

For investors, the key point is that SRF's growth rests on fluorochemicals and films, while specialty chemicals remain under pressure from Chinese competition. The rating change reflects valuation after the share price drop and mainly concerns the stock itself rather than the broader market.

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