SRF Q4 Review - Robust Earnings But Momentum Seen Slowing Ahead: Motilal Oswal
BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
SRF Ltd.’s Q4 FY21 operating performance was robust on the back of margin expansion across segments (on a YoY basis).
On a QoQ basis, Ebit margin has further moderated (down 420 basis point QoQ) in the packaging segment.
The company’s performance over the last three years has been robust, with an earnings compound annual growth rate of 42% and stock price CAGR of ~34%.
On the other hand, we expect the earnings momentum to slow to a 21% CAGR over FY21–23, primarily due to-
- margin contraction in the packaging segment and
- reduced growth momentum in specialty chemicals, weighed by a high base.
Click on the attachment to read the full report:
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 author entity 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.