In spite of such a fantastic performance,no analyst has come up with any recommendations

It is true that no leading Analyst/ Investment Banker /Broker has not come up with any detailed analysis on SRF in the recent past. It seems that India Infoline did attempt an analysis ( not broad ) and gave a

Dear Cool Bull,
Dalal Street has recommended SRF in its Diwali Portfolio (which consists of 11 scrips). It shows that they fully believe in the medium term prospects of SRF. Cheers.
sdixit

Also Economic Times recommended SRF a week or two back.

Thanks for the info. I found out that before results, ET had also recommended for Medium Term. However, post results and interim Dividend announcement, I did not see any.

True!!! Seems like these trading house and analyst would recommend SRF only after it has risen substantially so that they can dump it on the greedy retail investor!!!

I tried to post one analytical report on SRF by one Anankris published in eindiabrokers in June, 2006, but did not succeed. The report appears to be bold, unbiased, informative and far sighted. LET ME TRY ONCE MORE:
REG: RESEARCH REPORT ON SRF LTD-A POTENTIAL MULTIBAGGER

SRF LTD is a Company with strong fundamentals, Current EPS (FY06) of 16.24 and a clear visibility of earning for FY07 with Forward EPS (FY07 ) around 50. Current EPS is low as the results are not transparent to the extent that there is an element of undisclosed revenue to the tune of 240Cr ( Pre Tax) as this Co. is holding 2.4Million CER relating to the crediting period upto February, 2006. As this company is accounting revenue from CERs on a realisation basis, this fact do not reflect in the results announced for FY06 This will add 156Cr (PAT)to the bottom line for FY06( tax and transaction cost calulated at 35% based on SRF`s previous CER transaction) and an additional EPS of 23.8 resulting in actual EPS for FY06 of around 40-SRF`s CDM project can generate 3.8M CER annually as per approval by UNFCCC and as per the latest sale contract entered into by the Co. can yeild an annual Pre-Tax revenue of 380CR from FY07, ie, an additional revenue of 285Cr( Pre-Tax) over the revenue of appx.95 Cr (pre-tax) declared in the Co`s results for FY06.This will add to the bottomline of the co. 185CR ( PAT after deduction 35% towards tax and transaction costs) yielding an additional EPS of 28.2 for FY07 and a forward FY 07 EPS of 44.4. This FW(FY07) EPS of 44.4 is based on the current level of EPS from core business of the Co. In fact Co`s PFB ( Packing film business) is doing very badly during last 2 yrs, the loss for FY06 being around 20Cr. SRF`s TTB ( Tech. Textile Business ) results were also poor compared to previous years. Capacity of PFB was expanded from 5200 to 25000 during 2004 and it is expected that PFB will break even this year. If so it will add another 2-3 to EPS for FY07. SRF`s Forward EPS for FY07 should be around 45 to 50 considering robust growth in core business, break even of PFB etc. and recovery in TTB.SRF has also undertaken and commissioned various capex programmes for capacity exapnsion etc which will start bearing fruits rom this fiscal yielding higher revenue growth .You may consider the following also:
1. SRF`s stock price spurted from 90 levels reaching a high of 343 in Sep 05 on the strength of
carbon Credit story. From this SRF went down to 260 levels during Sep 2005 to Feb 2006
consolidating major part of this time at 260-280levels. In Feb 2006 SRF started its upmove
triggered by news of issue of CER and reached a high of 373 (7/4/2006)after announcement
of Revenue realisation 95Cr from sale of CER in March 06 from after which the the
downtrend started
2. Promoters stake in SRF increased from 34.5% in June 2004 to 39.4% in March 2006
3. Institutional/MF holding incresed from 29.% to 36% during the same period
4. Share of Indian Public decreased from 29% to 16%
5. Free float share comparatively low
6. Share is being mercilessly beaten down with total disregard to the strong fundamentals
and growth potential of this Co.
7. SRF is eligible for Carbon Crdeit for a period of 10 years from 2004. Annual CER available
as per UNFCCC`s approval of Co`s CDM project is 3.8Million per annum
8. There was crash in the carbon market during April - May 2006 triggered by lower emission
levels reported by Europeon Copuntries ( compared to taret allocation under NAP)
9. EUA prices came down to Euro 9.10 from a record high of Euro 31 during the above period
Cuurent price( for delivery Dec.2006) is around Eu 15

contd....2

10.Carbon credit prices will firm up in the future as authorities are likely to tighten the
emission norms during the Phase II ( Post 2008)
11.Signatories of Kyoto have recently agreed on a preliminery agenda for finalising emission
reduction targets for period beyond 2012, present expiry of the commitment. As such SRF
will continue to benefit from Carbon Credits beyond 2012.
12.Even if carbon credit story ends a per the existing provisions of Kyoto SRF`s kitty should
be richer by around 2000 Cr from Carbon credits.This windfall profit can be ploughd back
by the co for various capex programmes undertaken/new projects / new aquisition/
restructuring/ repayment of debts which will have tremendous impact on the co`s Revenue
growth and bottom line going forward.
11.Gujat Fluro Chemicals another leading player in the Carbon Credit market with same level
of EPS for FY05 (FY06 results not announced) has lesser eligigibily for CER ( 3M CER
compared to SRF`s 3.8M) recorded a high of 700 and currently trading around 400 as
against SRF`s high of 373 and current price of 150 SRF has already started revenue
generation from CER from FY 06 and GUJFLURO will start generating revenue from carbon
credit from this fiscal only.
12. The operators and other vested interests have deliberately beaten down this stock to
abysmal levels. Even considering the on going blood bath in the market the current levels
do not justify such a beating considering that SRF was at 190 levels in April 05 when the
sensex was around 7000 levels and EPS for 2005 at 9.31. Current EPS for FY06 as
declared by the CO. is 16.24 and and sensex 2000points above April 05 levels ie, EPS
higher by 75% and sensex up by 30%+( Compared to April 05 levels)
13. There is something cooking in the SRF counter which is stinking. The vested interests
are deliberately beating down this stock to gobble the same from retail investors at
cheap prices.
14. From 1/1/2005 following bulk deals are reported ( as per NSE)
a) Fr Templeton - Net Buy - No. 6.05 Lac @ 158.98
b) HDFC M/F - Buy - No. 7.48 Lac @ 212.98 (Avg)
c) Fidlety Net Buy- No. 32.39Lac @ 217.29 (avg)
d) SRF Poly Inv Buy- No.15.09 Lac @ 169.23 (avg)
e) Maruthi securities Sell- No - 5.02 Lac @ 312.40
f) Nirmal N. Kotecha Net Sell- 0.72 Lac @ 174.69
g) BNP Paribus Net Sell 1.80 Lac @ 329.94
i) PRB Securities Buy No. 0.22 Lac @ 342.92
There is no major sell other than sale of 9 lac share by BNP Paribus on 27.4.06 during 06
(EOE - NEED TO BE CHECKED WITH BSE AND OTHER DATAS)

Contd....3

15.It seems that the FIIs and M/Fs are holding on though they entered at low levels (except
PRB securities ) despite SRF reaching record high of 373 in April 06
16.The Brunt of the hammering is only felt by the poor retail investors who are possibly on
margin funding. Other retailers sitting on their on cash other than those exited doubting
the fundaments and playing on market sentiments, may be in red only in the books,
with possibility of a bounce back once market finds its feet, whether at 9000 or 7000
levels and start consolidation
17.A trading range of 450--500 in the short/medium term once the market correct is well
within the reach of this stock. Long term prospects look even brighter.
I REQEST U TO STUDY THIS STOCK AND MAKE AVAILABLE UR RESEARCH REPORT
FOR THE BENEFIT OF THE RETAIL INVESTORS WHO ARE FALLING A PREY TO THE EVIL DESIGNS OF THE VESTED INTERESTS. U WILL BE DOING GOOD TO THE RETAIL INVESTORS TO BOOST THEIR CONFIDENCE IN THE INDIAN GROWTH STORY WHICH IS ALREADY AT A LOW EBB.
ANANKRIS