Check Before You Invest : SRF Ltd

Snapshot

Q.1 Which industry/sub-sector does SRF Ltd belong to?

SRF Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.

Q.2 Is SRF Ltd a good quality company?

SRF Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is SRF Ltd undervalued or overvalued?

SRF Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is SRF Ltd a good buy now?

SRF Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of SRF Ltd?

SRF Ltd revenue growth is 11.8% for FY-2025, which is below its 5-year CAGR of 15.3%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of SRF Ltd?

SRF Ltd Return on capital employed is 12.35% for FY-2025, which is below its 5-year historical median of 18.17%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.3 Return on Asset of SRF Ltd?

SRF Ltd Return on Asset is 5.96%, which is below its 5-year historical median of 10.08%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of SRF Ltd?

SRF Ltd Return on equity is 10.4% for FY-2025, which is below its 5-year historical median of 20.34%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of SRF Ltd?

SRF Ltd Cash conversion cycle is 59 days, above its 5-year historical median of 46 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.71	0.72
ROE	10.4	20.34
ROCE	12.35	18.17
Cash Conversion Cycle	59 days	46 days

Q.6 Gross Profit margin of SRF Ltd?

SRF Ltd Gross profit margin which is the profit after deduction of direct costs, is 16.6% for FY-2025, which is below its 5-year median of 22.6%, indicating decreasing margins.

Q.7 Operating Profit Margin of SRF Ltd?

SRF Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 19.31% for FY-2025, which is below its 5-year median of 24.43% indicating decreasing margins.

Q.8 Net Profit Margin of SRF Ltd?

SRF Ltd Net Profit Margin is 8.51% for FY-2025, is below with its 5-year median of 14.26%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	16.6	22.6
Operating Profit Margin	19.31	24.43
Net Profit Margin	8.51	14.26

Q.9 Debt to Equity ratio of SRF Ltd?

SRF Ltd Debt-to-Equity ratio is 0.37, which is lower with the industry average of 0.38, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of SRF Ltd?

SRF Ltd Debt to cash flow from operations is 1.87, which is at a moderate level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of SRF Ltd?

Promoters hold 50.26% of the SRF Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of SRF Ltd vs industry peers?

SRF Ltd revenue CAGR is 15.30%, compared to the industry median CAGR of 14%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	11.8	14
Gross Profit Growth	4.7	13.9
Operating Profit Growth	5.2	16.7
Net Profit Growth	-6.4	15

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.71	0.61
ROE	10.4	14.33
ROCE	12.35	14.75
Cash Conversion Cycle (days)	59.16	88

Valuation & price assessment

Q.1 Stock return of SRF Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 25.1% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	25.1%	13.4%	-0.4%	-15.2%

Q.3 Valuation ratios of SRF Ltd vs historical?

The current P/E is similar that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	41.97	42.96	27.93
Price to Book	5.45	6.59	2.22
Price to Sales	4.95	5.47	1.93
EV to EBITDA	22.84	26.34	14.18

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