Motilal Oswal Rates SRF 'Buy' With ₹3,400 Target Price

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AuthorIshaan Verma|Published at:
Motilal Oswal Rates SRF 'Buy' With ₹3,400 Target Price
Overview

Motilal Oswal has begun covering SRF with a 'Buy' recommendation and a ₹3,400 price target. The brokerage highlighted strong 4QFY26 performance, showing a 14% year-on-year rise in EBIT across its Chemicals, Performance Films, and Technical Textiles segments. SRF showed strength in challenging global markets, navigating difficulties well. The outlook predicts solid revenue and profit increases through FY28.

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SRF Limited has received a 'Buy' recommendation from Motilal Oswal, which set a target price of ₹3,400 per share. This positive view is based on the company's strong performance in the fourth quarter of fiscal year 2026.

In the fourth quarter of FY26, SRF reported a 14% year-on-year increase in Earnings Before Interest and Taxes (EBIT) across its various business segments. The Chemicals Business saw EBIT grow by 5% year-on-year, while the Performance Films and Foil (PFF) division achieved a 47% jump. The Technical Textiles Business (TTB) also posted significant growth, with EBIT up 63% year-on-year.

Handling Market Challenges

SRF's ability to deliver strong results in tough global markets, especially in specialty chemicals, shows its operational strength. The company successfully adjusted its business away from the Middle East market without affecting its total volumes, demonstrating quick adaptation.

Future Growth Outlook

Motilal Oswal projects SRF will achieve a Compound Annual Growth Rate (CAGR) of 15% in revenue, 21% in EBITDA, and 24% in Adjusted Profit After Tax (Adj. PAT) from FY26 to FY28. The firm values SRF stock using a Sum of the Parts (SoTP) method, reflecting its confidence in the company's future growth.

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Disclaimer:This content is for educational and informational purposes only and does not constitute investment, financial, or trading advice, nor a recommendation to buy or sell any securities. Readers should consult a SEBI-registered advisor before making investment decisions, as markets involve risk and past performance does not guarantee future results. The publisher and authors accept no liability for any losses. Some content may be AI-generated and may contain errors; accuracy and completeness are not guaranteed. Views expressed do not reflect the publication’s editorial stance.