SRF rallies 5%, hits new high post strong Q2 results, capex plan

The management said the specialty chemicals business performed well with strong demand witnessed in the overseas markets.

Shares of SRF hit a new high of Rs 3,094, rallying 5 per cent on the BSE on Wednesday, after the company reported a strong operational performance with margin improvement of 230 bps in the September quarter (Q2FY20), led by the chemical business and operating leverage. The company has also announced three capex programmes. The stock surpassed its previous high of Rs 3,090 touched on August 26, 2019 in the intra-day trade.

In Q2FY20, EBITDA (earnings before interest, tax, depreciation and amortisation) margin improved to 20.6 per cent from 18.3 per cent in the year ago quarter, while the consolidated profit