BackExperts bet high on this multibagger chemical stock after this govt's decision
Multibagger stock: SRF share price has strong support at ₹2350 apiece levels and it may test ₹2520 levels in short term, say stock market experts
PremiumMultibagger stock: After witnessing the selloff heat in recent sessions, SRF share price has bounced back strongly in last one week. In last one week, this multibagger chemical stock has surged near 8 per cent, which has attracted attention of the retail investors. According to stock market experts, Government of India (GoI) recently decided to restrict import of hydrocarbon fluoro chemical, which is manufactured by SRF only. So, market is expecting that SRF will capture the new business opportunity emerging post-restrictions. However, they said that currently it is difficult to asses how much this GoI decision will translate into the business volume growth of the chemical company. But, they said that one should add this chemical stock in one's portfolio for medium to long term as the stock is expected to perform well in such long term after the import restrictions on hydrocarbon fluoro chemical.
Advising positional investors to buy this multibagger stock; Mudit Goel, Senior Research Analyst at SMC Global Securities said, "SRF shares have strong support at ₹2350 apiece levels and it may test ₹2520 levels in short term. On breaching this hurdle, there can be some more upside we can witness in the stock. So, one can buy this chemical stock at current levels maintaining stop loss at ₹2350 levels."
Advising positional investors to buy this stock for medium to long term time horizon; Avinash Gorakshkar, Head of Research at Profitmart Securities said, "Recently, GoI has restricted import of hydrocarbon fluoro chemical. As SRF is the only Indian company that manufactures this specialty chemical, market is expecting that it would benefit the chemical company as it will have a monopoly hydrocarbon fluoro chemical business in the domestic market. However, it would be difficult to assess as to how much it would translate into the rise of their business. So, one should buy the stock for medium to long term time as the decision will start getting translated into the balance sheet of the company after this much of time."
SRF share price history
SRF share price has been under selloff heat as the stock slipped around 2 per cent in this period. However, this multibagger stock bounced back strongly and gained around 8 per cent in last 5 trade sessions. It is one of the multibagger stocks in 2021 as it has delivered around 120 per cent return to its share holders in last one year.
Current market capital of the stock is ₹71,750 crore and its dividend yield is 0.30 per cent.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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