SRF Ltd. shares surged more than 4% on November 28, following Axis Capital’s upgrade of the stock from ‘Add’ to ‘Buy’, despite a slightly lowered price target of ₹3,330 from ₹3,410.

Growth Outlook
Axis Capital highlighted healthy medium-term growth potential in SRF’s chemical business, forecasting a 23% CAGR over FY25–28. The specialty chemicals segment is expected to lead growth with a 26% CAGR, supported by ramp-up of active ingredients (AIs), new molecules, and higher demand for existing products. Pricing in this segment is projected to remain largely stable.

Refrigerant Gas and Other Segments
In the refrigerant gas business, improved R32 capacity utilisation and a pricing-led uptick, aided by rising China prices, could bolster margins. However, recovery in the packaging films and technical textiles divisions is expected to take more time.

Earnings Revision
Axis Capital trimmed FY26–28 EBITDA estimates by 3–7% due to weaker commodity margins, but the target price adjustment offsets these cuts.

Stock Performance
SRF shares traded at ₹2,911.20, up 2.51%, and have surged 32% so far in 2025, reflecting strong investor confidence in the company’s specialty chemicals and refrigerant gas growth story.