Dolat Capital: SRF Surges On Strong Growth In Packaging; Chemical Business Disappoints In Q1
SRF Packging Films Production Line (Image Courtesy Company Website)

Dolat Capital: SRF Surges On Strong Growth In Packaging; Chemical Business Disappoints In Q1

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Dolat Capital Report

SRF Ltd.’s Q1 FY21 earnings print appears disappointing considering the company’s core business - Chemicals division, however a startling packaging films performance salvaged the company’s profitability.

Sales came below our estimates at Rs 15.4 billionn (our estimate Rs 17.9 billion) down 12.6% YoY.

Ebitda and profit after tax came in-line with our expectations at Rs 3.72 (up by 8.0% YoY) and Rs 1.77 billionn (flattish YoY) respectively.

SRF’s strong capex plans (approximately Rs 13.0 billion in FY21) and focus on growing specialty chemicals business are expected to be return on capital employed accretive at full capacity utilisations.

We like SRF’s moat in fluorination and ability to scale up its growth engines.

Click on the attachment to read the full report:

Dolat Capital SRF Q1FY21 Result Update.pdf


This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.