HSBC starts coverage of India's SRF at "buy" on specialty chemicals recovery

SRF

13/05/2026 09:24

** HSBC initiates coverage on India's chemicals maker SRF SRFL.NS with a "buy" rating, betting that improving fundamentals in specialty chemicals and performance films will reignite earnings momentum

** Brokerage sets a target price of 3,390 rupees, implying 21.9% upside over the next 12 months from the stock's May 8 close of 2,780.80 rupees

** Expects SRF to deliver a 26% earnings CAGR over FY27-FY29, powered by better sector dynamics

** Specialty chemicals are seen as the main growth engine, helped by normalizing global pesticide inventories, China's anti-involution policy measures, new active-ingredient launches and a rising pharma mix

** HSBC expects pharma's share to climb to 20% from 10% over the medium term, aiding SRFL's earnings

** Refrigerant gases remain a pressure point, with elevated competition and oversupply risks

** Still, HSBC says much of that concern is priced in after SRFL's 10% year-to-date fall

** LSEG data show 28 analysts rate the stock "hold" on average, with a median target of 3,172 rupees

 (Reporting by Bharath Rajeswaran in Bengaluru)

 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))