Nuvama has reiterated its ‘Buy’ rating on SRF, with a target price of ₹2,628, implying a 15% upside from the current market price (CMP) of ₹2,287.25.
The brokerage expects Q3FY25 to remain subdued but is optimistic about a stronger performance in Q4FY25. It emphasized the structural merit of the China+1 theme, despite intermittent weaknesses, as a key growth driver for SRF’s specialty chemicals segment.
SRF’s specialty chemicals business is projected to expand at a 20-25% CAGR over the next five years, underlining robust long-term potential. However, Nuvama has trimmed its FY25/FY26 EBITDA estimates by 2%/3%, reflecting gradual improvements in the chemicals business.
Disclaimer: The above is for informational purposes only. Please consult a financial advisor before making any investment decisions.
