Motilal Oswal has issued a buy rating on SRF with a target price of ₹3,200 in its research report dated July 23, 2026. According to the brokerage's analysis, the company delivered strong performance in Q1FY27 with significant growth across key business segments.
SRF demonstrated robust financial performance in Q1FY27 with EBIT growing 61% year-on-year. As reported by Motilal Oswal, the growth was driven by impressive performance across multiple business segments. The chemicals business EBIT jumped 27% YoY, while the technical textiles business (TTB) EBIT increased 1.9x YoY. Additionally, the performance films and foil (PFF) business EBIT rose 1.5x YoY. The company maintained strong performance despite facing challenges from volatile supply disruptions and uneven demand trends in the market.
Motilal Oswal has established ambitious growth targets for SRF, projecting a CAGR of 17%/18%/20% for revenue/EBITDA/adjusted PAT over FY26-28E respectively. According to the brokerage's analysis, these projections reflect the company's strong operational performance and growth trajectory across its diversified business portfolio.
Motilal Oswal has valued SRF using a sum-of-the-parts (SoTP) basis to arrive at the target price of ₹3,200. As reported by the brokerage, this methodology reflects the company's diversified business portfolio and the potential value of each segment independently. The valuation approach takes into account the strong performance across chemicals, technical textiles, and performance films and foil businesses.
