SRF Ltd (SRF IN) Initiate at Buy: Harnessing better sector fundamentals

研报英文原文证据摘录

SRF Ltd (SRF IN) Initiate at Buy: Harnessing better sector fundamentals

Equities ● Chemicals

13 May 2026

Executive summary

◆ Improving fundamentals in the specialty chemicals and packaging

films segments to drive growth

◆ We are cautious on the R-32 refrigerant gases business, given rising

competition; fourth generation refrigerant gas to benefit in FY28-29e

◆ Initiate with a Buy rating and a target price of INR3,390

Specialty chemicals and packaging films to drive growth,

offsetting risks from the refrigerant gas segment

Established in 1970, SRF’s business portfolio covers fluorochemicals, specialty chemicals,

The company exports to

performance films and foils, technical textiles, and coated and laminated fabrics. It has 9,000-more than 100 countries

plus employees working across 13 manufacturing facilities in India and one each in Thailand,

South Africa and Hungary; the company exports to more than 100 countries.

We estimate a revenue and earnings CAGR of 16% and 26% over FY26-29e, respectively,

driven by improving industry fundamentals, and new product additions/capacity expansion in the

contract manufacturing and packaging films businesses. SRF investments in fourth-generation

refrigerant gas (hydrofluoroolefins (HFOs)) and tie-ups with global companies like Chemours for

fluoropolymers are emerging as other drivers. China remains a major competitor; however, with

rationalisation of capacities underway, we expect a pick-up in the businesses for SRF.

We highlight risks in the refrigerant gas business (R-32)

We believe competition is set to increase in the second half of CY26e as companies rush to

build new capacities in alignment with the Kigali agreement, which is designed to gradually

phase down the production and consumption of hydrofluorocarbons (HFCs).