Jefferies has maintained an Underperform rating on SRF with a target price of ₹2,060, citing concerns over high valuations and modest growth prospects. Management expects Specialty Chemicals to grow year-on-year in FY26, driven by the commercialization of new Agrochemical Active Ingredients (AIs) and Pharma Products. However, the segment is likely to face pricing pressure in export markets due to contract renegotiations, even as domestic refrigerant gas prices remain firm on strong demand.
Jefferies remains cautious on SRF’s valuation, noting that the stock is currently trading at 47x forward PE, which is more than +2 standard deviations above its historical average, making the risk-reward profile unfavourable. The brokerage expects a gradual recovery but remains 16-17% below consensus estimates for FY26 and FY27 EPS.
