SRF share jumped 4% to hit a new 52-week high of Rs 2,781.95 as the company posted impressive Q3 results for FY25, with a 7% increase in consolidated net profit, reaching Rs 271 crore, surpassing street estimates.
The company’s revenue rose by 14.4% YoY to Rs 3,491 crore, compared to the consensus estimate of Rs 3,398.5 crore. EBITDA also saw a solid 9.5% growth, totaling Rs 620 crore, ahead of estimates.
The company’s chemicals business saw a 7% rise in segmental revenue, totaling Rs 1,496 crore. Operating profit in this segment surged by 13% to Rs 364 crore. The specialty chemicals division continues to recover from inventory overhangs, while demand is gradually picking up. The fluorochemicals sector was buoyed by strong domestic support for refrigerants, and the chloromethanes segment remained stable.
Despite strong Q3 results, SRF reported a 20.7% YoY decline in net profit for the nine months ending December 31, 2024, standing at Rs 724.72 crore.
In line with its robust performance, SRF’s board announced a second interim dividend of Rs 3.6 per share, with the record date set for February 4, 2025, and payment expected by February 27.
SRF share opened today at ₹2,700.00 and recorded a low of ₹2,636.05 during the session. With a 52-week low of ₹2,089.10, SRF has shown significant upward momentum.
Brokerage View
Jefferies has retained its ‘Underperform’ rating on SRF Limited with a target price of ₹2,600, indicating a slight downside from the current ₹2,657.
The brokerage noted strong performance in SRF’s chemical segment, driven by increased demand for refrigerant gases. However, specialty chemical demand remains weak due to excess inventory.
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