SRF shares soar over 8% in 2 days to hit a new 52-week high. Here’s why

The company’s profit after tax (PAT) increased by 7% YoY, reaching Rs 271 crore in Q3 FY25, up from Rs 253 crore in the corresponding period last year. SRF’s revenue increased by 14% YoY, rising from Rs 3,053 crore in the corresponding period last year to Rs 3,491 crore in Q3 FY25.

Meanwhile, the company’s Earnings before interest and tax (EBIT) also saw healthy growth, climbing 16% YoY to reach Rs 529 crore, compared to Rs 457 crore in the same quarter of the previous year.

The company also declared a second interim dividend of Rs 3.60 per share for its shareholders.

The Chemicals business reported an increase of 7% YoY in its segment revenue to Rs 1,496 crore during Q3FY25. The operating profit of the Chemicals business increased 13% from Rs 322 crore to Rs 364 crore in Q3FY25.

Additionally, the Packaging Films business reported an increase of 27% in its segment revenue from Rs 1,091 crore to Rs 1,385 crore during Q3FY25 when compared with the corresponding quarter of the same period last year.Also read: Waaree Energies shares surge 14% as Q3 profit soars 296% YoY to Rs 493 crore

Post the company’s Q3 results, global brokerage firm Jefferies shared its note on SRF. Jefferies maintained an ‘underperform’ rating on SRF with a target price of Rs 2,600, citing strong performance in the chemical segment driven by higher demand for refrigerant gases, particularly from domestic OEMs.
However, specialty chemical demand remains muted due to an inventory hangover, and the packaging segment continues to underperform. Additionally, Jefferies notes that valuations remain stretched.

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