SRF share price target 2022, 2023, 2024, 2025, and 2030: In this article, you will learn about SRF share price target 2022, 2023, 2024, 2025, and 2030, along with the fundamentals and financials of the company.
For every investor, it is important to know about the company in which they are investing, to get the confidence to hold the stock for the long term. To make it clear to you, in this article we have mentioned SRF share price target 2022, 2023, 2024, 2025, and 2030, along with the fundamentals of the company.
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SRF Share Price Target 2022, 2023, 2024, 2025, and 2030: Company Profile
SRF began as Shri Ram Fibres in 1970 when its parent company DCM decided to set up a separate entity to manufacture nylon tyre cord fibres. Its formation was a result of the foresight that nylon was the future material for tyre cord fibres. The company established its first plant in Manali near Chennai in 1973. Over the years, the company not only expanded its product range under Technical Textiles but also diversified into many adjacent businesses.
Besides Technical Textiles, the company’s business profile constitutes Fluorochemicals, Specialty Chemicals, and Packaging Films. Equipped with state-of-the-art R&D facilities, the company boasts of its Chemical Technology Group which is actively involved in process innovations and product development.
The Company is a chemical-based multi-business entity engaged in the manufacturing of industrial and specialty intermediates. The company classifies its businesses as Technical Textiles, Chemicals, Packaging Films, and Other Businesses.
The company’s product portfolio is broadly categorized into – Technical Textiles, Chemicals, and Packaging Films.
Share Holding Pattern
SRF Share Price Target 2022
FY21 gave SRF an opportunity to prove its steadfastness in critical times to all its stakeholders: customers, employees, business partners, and the community. From a financial point of view, in FY 2020-21, SRF has achieved a 31% increase in profit after tax at 1,198 crores compared to 916 crores last year. SRF revenue for the year stood at 8,400 crores as against 7,209 crores in the previous year, recording an overall growth of 17%.
SRF grew its market share across its businesses and continued to make significant investments in building its capabilities, nurturing talent, and expanding our technology prowess, all the while maintaining credit discipline and a healthy balance sheet.
In FY 2020-21, the Chemicals Business accomplished strong growth of 23% Year-over-Year (Y-o-Y) to achieve record revenues of 3,645 crores. In the Specialty Chemicals Business, SRF ongoing efforts to commercialize molecules for both the agrochemicals and pharmaceuticals segments are well on track and continue to maintain a healthy product pipeline for the future. SRF’s Specialty Chemicals Business is a ‘Preferred Partner’ with most of its global customers.
As SRF grows its revenues, SRF will continue to invest in this segment to sustain healthy growth rates over the next few years. In this regard. As the Business is growing, it is essential to augment Arun Bharat Ram Chairman, SRF Limited facilities to capitalize on emerging business opportunities. With an expanding product portfolio, a new MPP facility will further support the Company’s endeavors to tap emerging business opportunities and ensure a robust pipeline of new, cutting-edge products in the future.
Similar investments alongside improved efficiencies, and optimum utilization of capacities, should enable SRF to deliver operational excellence and result in even better performance, going forward. In the Fluorochemicals Business, SRF prudent investments in capacities, R&D, innovation, and technology have established SRF as one of the very few, fully backward-integrated producers globally. To build on this foundation and take it to a new level, the team delivered another first during the year and commissioned a state-of-the-art refrigerant application lab at its chemical manufacturing facility in Bhiwadi, Rajasthan.
These are significant steps in what has been an ongoing journey of growing its R&D competence and SRF is already seeing important new benefits.
During the year, SRF has also made an important announcement to set up an additional facility to produce 95,000 MT per annum of Chloromethanes at Dahej, Gujarat. This will take its total capacity to above 190,000 MT, making SRF a global player in Chloromethanes. SRF expansion plans are a big part of its overall vision of becoming a strong force in the global chemical industry and playing a much larger role in its customers’ success. By considering all these factors, SRF share price target for 2022 is Rs 2,870.
|SRF share price target 2022|
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SRF Share Price Target 2023
In FY 2020-21, SRF’s Packaging Films Business witnessed robust growth of 26% Y-o-Y to achieve record revenues of 3,292 crores. Scale, operating leverage, better margins, and strong demand from marquee customers across the globe helped establish SRF as a renowned player in the global packaging industry. With a new BOPET film line in Rayong, Thailand, and the startup of our operations in Hungary, SRF’s plants now have a combined annual capacity of 270,000 tons of BOPET and BOPP films, making it one of the biggest producers of both types of films.
Back home in India, civil work for SRF’s new BOPP line & Metallizer at Indore is also progressing as per schedule. With the support of its esteemed customers, SRF is confident of a vertical start-up of all its new lines that it hopes to ramp up to maximum capacities in the months to come.
Technical Textiles Business had an encouraging performance in FY21, aided by a quick recovery in the tyre industry. Customers continue to favor domestic supplies owing to supply volatility, which has resulted in imports substitution. In Belting Fabrics, SRF focus has been on the customization of fabric required by its customers from time to time. With its investment in modernization, capacity expansion, and technological up-gradation, SRF is aiming to build its Belting Fabrics facility in Viralimalai, India as one of the largest single-location belting fabrics sites in the world. SRF share price target for 2023 is Rs 3,150.
|SRF share price target 2023|
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SRF Share Price Target 2024
FY 2020- 21 began on a difficult note with the entire country under strict lockdown restrictions to control the surge of COVID-19. This resulted in the shutdown of all TTB manufacturing plants. However, as the unlock process started, all plants re-started operations, with strict safety protocols while maintaining product quality. By the end of H1 – 2020 – ‘21, all TTB segments witnessed a strong revival. Increased Government spending in infra sectors focus on personal mobility,
import restrictions on Chinese tyres and container shortage resulting in higher sea freight triggered an increase in domestic demand.
Tyre Cord Fabrics
Nylon Tyre Cord Fabric segment registered strong demand from both Original Equipment (OE) and replacement sectors during H2 – 2020 – ‘21. Restriction in tyre imports from China led to an increase in domestic tyre production across all segments resulting in overall growth in demand for Tyre Cord Fabrics (TCF). TCF segment also executed yarn capacity expansion and debottlenecking projects in FY 2020- ‘21.
Belting Fabrics segment is a key supplier to end-user industries, namely, steel, cement, coal, and power generation. In FY 2020- ’21, all these industries witnessed a de-growth, thereby resulting in pressure on margins. However, with an increased focus on Value-Added Products (VAPs) and an integrated value chain, the Business was able to increase the overall market share and sales volume to domestic as well as export markets. With the ongoing expansion projects and a strong portfolio of VAPs, SRF will further consolidate its position in both the domestic as well as global markets in FY 2021- ‘22.
Polyester Industrial Yarn
The polyester Yarn segment witnessed a strong revival in H2 FY 2020 – ’21 due to increased demand from the auto segment and a stronger push in infra sectors. The continued focus on increasing sales of VAPs helped keep the margins healthy, despite the Chinese continuing to dump yarn into India at very low prices. The healthy margins trend is expected to continue in FY 2021- ‘22 as well.
The Technical Textiles Business is likely to perform well in FY 2021- ’22, owing to a revival in the demand of all major end-user industries. By considering all these factors, SRF share price target for 2024 is Rs 3,390.
|SRF share price target 2024|
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SRF Share Price Target 2025
The Chemicals Business comprises two different product segments, namely Fluorochemicals and Specialty Chemicals.
Refrigerants & Propellants and Industrial Chemicals FY 2020- ‘21 was a tough year for the refrigerants market globally. The auto and air-conditioner market declined initially, which resulted in a significant drop in refrigerant market demand along with selling prices. It was only in the latter part of the year that some revival in demand was witnessed, although the international prices remained subdued throughout the year. However, the Industrial Chemicals market performed well due to the growth in the pharma and agrochemicals segment.
The Industrial Chemicals Business was able to maintain its market share and launched a new product- Methyl Chloride in its CMS portfolio. Both Chemicals sites witnessed stable and safe operations during COVID-19 and nearly all the plants operated at full capacity during the second half of the year. SRF successfully launched its first ASHRAE product F 467A in the international market.
In addition, SRF received the European Pharmacopoeia certificate for its Dymel® product segment, along with the addition of new customers and geographies in this space. SRF continues to improve its process capability and was able to develop innovative processes in existing operations and filed new patents during the year. Overall performance for this year was lower than last year with the latter half of the year being significantly better, almost reaching pre-COVID-19 levels.
The Business is expected to do well on the back of robust GDP growth projections for major economies and India. In addition, the surge projected in domestic A/C and refrigerator production capacities in lieu of various Government policies and initiatives like the ban on pre-charged ACs imports, PLI, Atma Nirbhar Bharat or increase in personal mobility resulting in a boost to the auto sector augurs well for the Business.
Furthermore, with increased spending on healthcare and favorable Government policies, the pharma and agrochemical segments will also continue to grow. Exports are also likely to remain firm with a positive outlook in the US Economy, where SRF has already established a reasonable business share.
Overall, the Business is expected to improve its performance with better capacity utilization and commissioning of new plants like CMS in the latter half of the year 2021- ‘22, sales ramp-up of AHCL, and other cost improvement initiatives including supply chain stabilization along with keeping a close watch on how the macro scenario moves. The Business will focus on maintaining its market share of F 134a, F 32, F 125, HFC Blends, and Methylene Chloride, aside from its ongoing efforts to pursue growth in Industrial Chemicals with the addition of new products in its portfolio. By considering all the above-mentioned factors, SRF share price target for 2025 is Rs 3,740.
|SRF share price target 2025|
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SRF Share Price Target 2030
Specialty Chemicals Business
The Specialty Chemicals Business maintained its growth momentum during the year. COVID-19 related interruptions affected the Business mostly in the first quarter of the FY. The Business received support from the market despite the global pandemic. SRF focused on the customers’ key products and their developmental project requirements, while at the same time ensuring that the production capacities were optimally utilized during the year.
Both the sites managed production despite COVID-19 induced manpower challenges. This ensured continuity of customers’ supply chain. The Business captured the market opportunities and translated them into commercial propositions. The agility demonstrated in supplying some critical and complex intermediates was acknowledged by its customers and SRF was also bestowed the ‘Syngenta Supplier Award 2020 for Performance’ during the year.
The Business continues to remain focused on the agrochemical and pharmaceutical space, where SRF collaborates with major global innovators for process development, commercialization, and production of complex new-age molecules having downstream applications in agrochemical and pharmaceutical segments. During the year, the Business launched several new agrochemical and pharma intermediates and remained steadfast on its ‘Innovation and Technology Leadership’ journey. The production capacity of several products was enhanced significantly at both sites. Three new dedicated plants were also commissioned during FY 2020 – ‘21.
The Business made continual investments towards cleaner and leaner operations, in line with further strengthening its sustainability initiatives. All these measures have further enhanced the positioning of the Business in its ability to deliver complex specialty products and related intermediates. Outlook The Business continues to engage with global innovators to develop new-age products in our chosen markets and strives to serve its customers despite the ongoing challenges posed by the pandemic.
The Business, supported by its customers, is expected to continue showcasing its ability to supply critical intermediates and meet customers’ emerging needs. The Business will continue in its efforts to deliver better value to its customers as it remains committed to investing in emerging and futuristic technologies while having a strong focus on operational excellence to sustain growth. By considering all these opportunities, SRF share price target for 2030 is Rs 6,120.
|SRF share price target 2030|
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SRF Share Price Target 2022, 2023, 2024, 2025, and 2030
|Year||Share Price Target|
|SRF share price target 2022||Rs 2,870|
|SRF share price target 2023||Rs 3,150|
|SRF share price target 2024||Rs 3,390|
|SRF share price target 2025||Rs 3,740|
|SRF share price target 2030||Rs 6,120|
Frequently Asked Questions
What is the target of SRF?
SRF share price target for 2022 is Rs 2,870, SRF share price target for 2023 is Rs 3,150, SRF share price target for 2024 is Rs 3,390, SRF share price target for 2025 is Rs 3,740, and SRF share price target for 2030 is Rs 6,120.
Is SRF a good buy?
Yes, SRF is a good company in terms of financials and fundamentals. The company has shown a good profit growth of 31.62% over the past 3 years and the company has shown good revenue growth of 15.11% for the past 3 years.
Is SRF large-cap?
Yes, SRF is a large-cap company. A company with a market cap of more than 20,000 crores is called a large-cap. SRF’s market cap is around 80,000 crores.