Buy SRF, target price Rs 3000: JM Financial

JM Financial has buy call on SRF with a target price of Rs 3000. The current market price of SRF is Rs 2274.85.

SRF, incorporated in the year 1970, is a Large Cap company (having a market cap of Rs 67436.65 Crore) operating in Diversified sector.

SRF key Products/Revenue Segments include Chemicals (Industrial), Packaging Film, Textiles, Others for the year ending 31-Mar-2022.

Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 3760.52 Crore, down -3.69 % from last quarter Total Income of Rs 3904.57 Crore and up 31.94 % from last year same quarter Total Income of Rs 2850.09 Crore. Company has reported net profit after tax of Rs 480.99 Crore in latest quarter.

The company’s top management includes Mr.Arun Bharat Ram, Ms.Bharti Gupta Ramola, Mr.Tejpreet S Chopra, Mr.Puneet Yadu Dalmia, Mr.Lakshman Lakshminarayan, Mr.Raj Kumar Jain, Mr.Yash Gupta, Mr.Pramod G Gujarathi, Mr.Kartik Bharat Ram, Mr.Ashish Bharat Ram, Mr.Vellayan Subbiah. Company has BSR & Co. LLP as its auditors. As on 30-09-2022, the company has a total of 30 Crore shares outstanding.

Investment Rationale
SRF’s 3QFY23 EBITDA is likely to remain flat sequentially mainly on account of 1% contraction in sequential sales and slight improvement in sequential EBITDA margin to 22.0% (vs. 21.6% in 2QFY23).

Promoter/FII Holdings
Promoters held 50.53 per cent stake in the company as of 30-Sep-2022, while FIIs owned 19.21 per cent, DIIs 13.95 per cent.