SRF is doing pretty well, showing a smart opening at Rs.1033.05 from previous close of Rs.1018.75. Since then it spurted up to an intra day high of Rs.1070 and it now around the same levels, up over 5%.

The stock is in the limelight after brokerage house, Edelweiss initiated coverage on the stock, giving it a  ‘buy’ call. In its report covering the reasons, the brokerage house has stated that it expects the company to do well due to capacity expansion in specialty chemicals, which would lead to strong earnings growth of 28 % CAGR over FY15-17.

It has stated that SRF is an attractive play for its strong brand equity, high business entry barriers, sound management, healthy balance sheet and improving return ratios.