SRF has been downgraded by UBS Securities from a 'buy' recommendation to a 'sell' rating due to ongoing growth challenges. The brokerage has also lowered its price target for SRF by more than 22 percent to Rs 2,100, suggesting a potential downside of 9 percent from the stock's last closing price.

The downgrade is a result of sluggish demand in the agrochemical sector, with expectations that China will gain a larger market share. Furthermore, there is a noted decline in demand and pricing for refrigerant gases, particularly in the US market, where SRF is a significant exporter. UBS highlighted that weak demand in the US is due to high channel filling last year before quota implementation, while Chinese manufacturers are gaining a competitive advantage by subsidizing export prices due to strong domestic profitability.

SRF's shares have remained relatively stable over the past three years, resulting in only a 4 percent return. As of the latest trading session, SRF's stock is down 2.12 percent, trading at Rs 2,482.40 with a volume of 426,131 shares.