Jefferies has reiterated its underperform rating on SRF Ltd, even as it raised the target price to ₹2,640 from ₹2,336. This implies a downside of nearly 16% from the current market price of ₹3,141.00, reflecting Jefferies’ cautious view on the stock’s valuation amid industry headwinds.
The brokerage flagged an operational miss in Q1FY26, though the company management has maintained its growth guidance. Jefferies believes the startup of new active ingredient (AI) facilities may aid growth in the coming quarters, but concerns remain.
Specifically, Jefferies noted that large capacity additions in R-32 are putting downward pressure on domestic prices, which could weigh on earnings visibility. While there is some optimism around a chemicals sector recovery, the brokerage said current valuations already factor in that upside.
Disclaimer: The views and recommendations expressed in this article are those of Jefferies and do not represent the views of this publication. This does not constitute investment advice. Investors should consult their financial advisors before making investment decisions.
