SRF analysts maintain their 'sell' rating on the stock after Chemours agreement
Published on 20/08/2025 08:14 AM
SRF analysts maintain their 'sell' rating on the stock after Chemours agreementBrokerage firm UBS said that with ready fluoropolymers capacity, SRF is expected to see a major revenue uptick starting FY27E.By Meghna Sen August 20, 2025, 8:14:29 AM IST (Published)2 Min ReadShares of specialty chemicals manufacturer SRF Ltd. will remain in focus on Wednesday, August 20, after brokerage firms weighed in on its recently announced agreements with Chemours.
Global brokerage firm UBS has maintained a 'Sell' rating on SRF, with a price target of ₹2,400.
The brokerage said that the partnership between SRF and Chemours for the supply of fluoropolymers can be meaningful. The agreement may supplement Chemours' global operations through potential outsourcing to SRF.
UBS added that with ready fluoropolymers capacity, SRF is expected to see a major revenue uptick starting FY27E.
Citi has also retained a 'Sell' rating on SRF, with a slightly higher price target of ₹2,725.
The company recently announced a strategic multi-year agreement with Chemours for the manufacturing of advanced fluoropolymers and fluoroelastomers. These products will be manufactured at SRF's existing facility in Dahej.
SRF had commissioned a 5 ktpa PTFE (Polytetrafluoroethylene) facility at Dahej in October 2023, and is currently in the process of ramping it up, operating at 50-60% utilisation. The Chemours agreement will be executed as part of this facility.
Although the specific products to be manufactured under the deal haven't been disclosed, PTFE imports into the US are exempt from reciprocal tariffs, potentially offering an additional advantage.
Chemours, in its announcement, said the agreement with SRF strengthens its global supply chain footprint, enhances operational flexibility, and provides increased capacity for fluoropolymers and fluoroelastomers, materials critical across sectors such as semiconductors, automotive, aerospace, chemical processing, and oil & gas.
With the added capacity from SRF, Chemours aims to ensure a more reliable supply for customers globally, the company said.
Shares of SRF ended with gains of 0.35% at ₹2,940. The stock has risen 33% so far in 2025.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsSRFSRF stock