36% Dividend: IDBI Capital Bullish On Specialty Chemicals Stock, To Ex-Dividend on August 01

Renowned brokerage firm IDBI Capital has placed a Buy on SRF Ltd. with Rs 2913 per share target price. Keeping the assigned target price on the stock, if you buy the stock at the current market price, it can fetch up to 36% gains.

The Board of Directors of the company in their meeting held on July 24, 2023, has declared an interim dividend at 36% i.e. Rs. 3.60 per share on the paid-up equity share capital of the Company.

Interim Dividend

"the Board of Directors at its meeting held on 24th July, 2023 has declared interim dividend @ 36% i.e. Rs. 3.60 per share on the paid-up equity share capital of the Company," the Board said in the filing.

It added, "The Interim Dividend would be paid to members whose names appear on the Register of Members and the beneficial owners as per details received from National Securities Depository Limited and Central Depository Services (India) Limited, as on the Record Date i.e. Tuesday, the 01st August 2023 which has already been communicated to Exchanges by letter dated 17th July, 2023."

Lacklustre Growth, Navigating through tough times

According to IDBI Capital, "SRF delivered results below our expectations. Revenue/EBITDA and PAT declined by 14%, 30% and 41% yoy respectively. Within the chemicals business, the revenue for the specialty chemicals business grew by ~ 10% yoy which is commendable in the wake of the global demand slowdown in the agrochemical segment. However the fluorochemicals part of the business was impacted by both volume and price declines led by Chinese dumping, weak domestic summer season and lower demand from industrial chemicals. Revenue for the packaging films business declined by 27% yoy with margins falling severely by 15 percentage points. Revenue for the technical textiles business declined by 19% yoy with margins seeing a sharp drop of ~7 percentage points. "We maintain our BUY rating on SRF with a SOTP target of Rs 2,913," the brokerage has said.

Stock Movement

On Wednesday, SRF Shares closed at Rs 2145.05 apiece with an intraday high of Rs 2162.65 and an intraday low of Rs 2110.70 on BSE. Its 52-week-high is Rs 2864.35 apiece and its 52-week-low is Rs 2050 apiece.

The stock has given negative returns in the past 1 years. It has fallen 4.38% in 1 week, 8.18% in 1 month, 14.07% in 3 months, and 9.28% in 1 year, respectively. However, it has given 36.85% positive return in 3 years and 550.90% in 5 years, respectively.

About - SRF Ltd.

Incorporation in 1970, SRF Ltd. is a Specialty Chemicals sector large-cap company. The company's diversified business portfolio covers Fluorochemicals, Packaging Films, Specialty Chemicals, Technical Textiles and Coated and Laminated Fabrics. The market cap of SRF is Rs 63,584.61 Crore.

Disclaimer - The stock has been picked from the brokerage report of IDBI Capital. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.