Jefferies has maintained an ‘Underperform’ rating on SRF Limited, setting a target price of ₹2,600, implying a 2.1% downside from the current market price of ₹2,657.
The brokerage highlighted that the chemical segment outperformed, driven by strong demand for refrigerant gases from domestic OEMs. However, Jefferies remains cautious as specialty chemical demand remains muted due to an inventory hangover.
The key concern leading to the downgrade is the weak performance in the packaging segment, which has failed to recover as expected. Additionally, Jefferies pointed out that valuations remain stretched, reinforcing its cautious stance on the stock.
While the company continues to benefit from strong refrigerant gas demand, investors are likely to watch for improvements in the packaging and specialty chemical segments to assess future growth potential.
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