​Shares of SRF rose to new highs. Know why

Shares of SRF Ltd., a top chemical maker, rose to fresh highs after the company announced a smart rise in quarterly earnings aided by a jump in its polymers and packaging films business.

SRF said its first quarter Net Profit rose 22.4 percent to 113.2 crore rupees compared with 92.50 crore rupees in the same quarter a year ago. Sales during April-June added 6 percent to 1,223 crore rupees from 1,156 crore rupees in the year ago period.

SRF rose 13.60 rupees, or 1 percent, to 1,458 rupees, a record high on the National Stock Exchange, where 80,000 shares were traded by 9:38 am compared with the 5-day average of 3.05 lakh shares.

SRF's market capitalisation has jumped 130 percent in the past one year to 8,300 crore rupees as investors latched on to companies where raw material costs slipped owing to the fall in global crude oil prices, a benchmark for the sector.

Image credit: Indiatimes