SRF shares dip over 2% as Citi maintains ‘Sell' rating with target price of Rs 2,725
While SRF's Q1 results surprised positively on the operating front—beating EBITDA estimates by 11%—Citi remains cautious. The brokerage pointed to underlying concerns in the company's revenue trajectory and future growth outlook, particularly in the specialty chemicals segment.
Despite a 10% year-on-year growth, Q1 revenue declined 12% sequentially, signaling near-term softness. Citi highlighted that this trend may continue, citing risks such as pricing pressure from China and delays in commercialising key products, which could weigh on future earnings.
Citi also flagged concerns over margin sustainability, warning that investor sentiment could stay muted until there is more visibility on a rebound in SRF's specialty chemical pipeline—an area closely watched for long-term growth.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
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Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at BusinessUpturn.com
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