India's SRF falls after Jefferies sees 14% downside on demand weakness, valuations

SRF

09/01/2024 05:14

** Shares of SRF  SRFL.NS  fall as much as 2.10% to 2,345.35
rupees
    ** Jefferies downgrades specialty chemicals co to
"underperform" from "hold"; PT at 2,140 rupees, implied downside
of 14%
    ** Jefferies' PT is second-lowest among 26 analysts tracking
SRFL and 17.69% lower than median PT of 2,600 rupees
    ** Mean rating of analysts tracking SRFL equivalent to "buy"
- LSEG data
    ** SRFL's business recovery to lag recent stock rally making
risk-reward unfavourable - Jefferies
    ** SRFL's shares have rallied ~13% in last two months of
2023 before shedding 5% this month so far, including today's
losses
    ** Jefferies expects demand weakness in specialty chemicals,
refrigerant gases to persist in H2FY2024
    ** In specialty chemicals segment, brokerage identifies PI
Industries  PIIL.NS  as top pick due to healthy volume growth
outlook and reasonable valuations; PIIL shares up 0.75%

 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))