On December 23, the benchmark NSE stock index finished above 17,000, Sensex too, came in above 57,300 levels thanks to power, real estate and equity stocks. computer science. All sector indices closed in the green with the FMCG, Realty, PSU Bank, Power, Oil & Gas indices increasing by 1% to 2%, with the exception of metals. Investors should look for good stocks that are not deterred by the direction of the market. In our effort to generate value stocks, we have selected a stock with high potential to add to investor fortunes in the medium to long term.
SRF (NS 🙂 Ltd
SRF Limited is an Indian multinational multi-company which manufactures chemical-based industrial intermediates. The company has a business portfolio that encompasses technical textiles, chemicals, packaging films and engineering plastics. Building on a close relationship with reputable clients, SRF has the ability to extend pilot processes and manage complex reactions. The company holds a significant fluorochemicals market share in India with operations globally. It is one of the few global manufacturers of Pharma grade 134a / P propellants in metered dose inhalers. SRF has a 40% share of the Indian nylon tire ropes market and is the second largest player in the world.
Note that the global agrochemical market is experiencing healthy growth. “The China plus a global sourcing strategy continues to bode well for the future growth of SRF’s business. There is strong momentum in all areas of the domestic tire industry. With the reopening of the mining sector, the belt fabric industry has experienced strong demand. These trends bode well for the company’s technical textile business. Overall, however, headwinds persist in the form of high logistics costs, escalating raw material costs and supply chain constraints. SRF plans to move up the value chain by accelerating the qualifications of new molecules in the agro and pharmaceutical sectors, as well as the use of the capacities of the newly commissioned factories. However, the operating margins of the packaging films business should remain under pressure, leading to price corrections.
In the September 2021 quarter, SRF’s consolidated revenue was Rs 2,842.3 crore, up 35.15% from Rs 2,103 crore in the second quarter of fiscal 2021. The company’s operating profit rose 18.7% to Rs 569.2 crore from Rs 479.6 crore in the September 2020 quarter. Profit after tax rose 21.2% to Rs 382.5 crore compared to Rs 315.7 crore in the second quarter of fiscal 2021. The 3-year CAGR of revenue and CAGR PAT remained at 15% and 32% respectively. Its return on equity CAGR during the period was 18%.
Notably, the holding of FIIs fell from 18.39% to 19.18% during the September 2021 quarter. The number of FIIs fell from 275 previously to 324 at the end of the quarter. The script looks good based on the main technical parameters like RSI, Momentum, MACD and EMA 10 days / 20 days / 30 days / 50 days / 100 days / 200 days. Currently, the stock is trading at a discount of 8.67% from its 52 week high at Rs 2,538.