Morgan Stanley has maintained its Underweight rating on SRF Ltd, assigning a target price of ₹2,150 per share. The revised target implies a 33% downside from the current market price of ₹3,206.40.
According to the brokerage, core profit after tax (PAT) for Q1FY26 came in slightly above expectations, aided by lower interest and tax expenses. However, core EBITDA was broadly in line with estimates, indicating no major operating outperformance.
Morgan Stanley noted that chemical segment margins were healthy, especially considering the seasonal softness typically seen in the quarter. Additionally, packaging segment margins were better than expected, supporting profitability.
Despite these positives, the brokerage remains cautious on SRF’s valuation and medium-term growth visibility, retaining its bearish view on the stock.
Disclaimer: The brokerage views expressed above are those of Morgan Stanley. This article does not constitute investment advice. Readers are advised to consult their financial advisor before making any investment decisions.
