Weakness in chemicals and packaging businesses continues

Company
11 Mar 2024
5 Min read 
  • SRF reported a decline in operating profitability in 3QFY24 due to weakness in the chemicals and packaging businesses.
  •  The chemicals business, particularly the specialty chemicals segment, faced headwinds due to inventory rationalization.
  •  The packaging film business continued to face supply overhang and pressure on margins.
  •  The technical textiles business performed well, driven by strong demand for Nylon Tyre Cord Fabric.
  •  The company plans to incur capex of around INR20-22 billion in FY25, with a focus on the chemicals segment.
  •  The stock is valued at INR2,250 with a neutral rating.
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