The key valuation ratios of SRF Ltd's currently when compared to its past seem to suggest it is in the Somewhat overvalued zone.
3. Is SRF Ltd a good buy now?
The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of SRF Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.
10 Year X-Ray of SRF:
Analysis of Financial Track Record
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.
What is a Financial Track Record? How to read this chart in order to understand the data present here?
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
SRF Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation ⓘ
Value Creation Index Colour Code Guide
ⓘ
Mar'15
Mar'16
Mar'17
Mar'18
Mar'19
Mar'20
Mar'21
Mar'22
Mar'23
Mar'24
TTM
ROCE % ⓘ
12.1%
14.3%
14%
11.5%
13.3%
13.3%
18.2%
24.2%
22.6%
12.8%
-
Value Creation Index ⓘ
-0.1
0.1
0.0
-0.2
0.0
0.2
0.6
1.2
1.0
0.1
-
Growth Parameters ⓘ
Growth Parameters Colour Code Guide
ⓘ
Sales ⓘ
4,540
4,593
4,822
5,589
7,100
7,209
8,400
12,434
14,870
13,139
14,358
Sales YoY Gr.
-
1.2%
5%
15.9%
27%
1.6%
16.5%
48%
19.6%
-11.7%
-
Adj EPS ⓘ
9.5
15.2
17.3
14.9
21.2
31.6
40.2
61.9
75.3
46.8
42.2
YoY Gr.
-
59.1%
14%
-13.5%
41.7%
49.5%
26.9%
54.2%
21.5%
-37.9%
-
BVPS (₹) ⓘ
78.9
96.2
110.8
124.1
143.6
171.6
231.4
288.8
348
386.5
425.9
Adj Net Profit ⓘ
273
435
496
429
608
909
1,190
1,836
2,231
1,386
1,251
Cash Flow from Ops. ⓘ
542
1,090
645
678
896
1,304
1,772
2,106
2,902
2,094
-
Debt/CF from Ops. ⓘ
4.5
2.3
3.7
4.6
4.2
3.1
1.9
1.7
1.5
2.4
-
CAGR ⓘ
CAGR Colour Code Guide
ⓘ
9 Years
5 Years
3 Years
1 Years
Sales ⓘ
12.5%
13.1%
16.1%
-11.7%
Adj EPS ⓘ
19.3%
17.2%
5.2%
-37.9%
BVPSⓘ
19.3%
21.9%
18.7%
11.1%
Share Price
30.5%
33.8%
7.4%
26.7%
Key Financial Parameters ⓘ
Performance Ratio Colour Code Guide
ⓘ
Mar'15
Mar'16
Mar'17
Mar'18
Mar'19
Mar'20
Mar'21
Mar'22
Mar'23
Mar'24
TTM
Return on Equity % ⓘ
12.5
17.2
16.7
12.7
15.8
20.1
20.2
23.8
23.6
12.7
10.4
Op. Profit Mgn % ⓘ
16
21.2
20.1
16.2
18.6
20.2
25.4
25
24.4
20.3
19.8
Net Profit Mgn % ⓘ
6
9.5
10.3
7.7
8.6
12.6
14.2
14.8
15
10.6
8.7
Debt to Equity ⓘ
1.1
0.9
0.8
0.9
0.9
0.8
0.5
0.4
0.4
0.4
0.2
Working Cap Days ⓘ
125
123
130
141
149
149
136
124
122
145
73
Cash Conv. Cycle ⓘ
77
61
39
29
32
40
35
39
46
60
5
Recent Performance Summary
Sales growth is growing at healthy rate in last 3 years 16.08%
Sales growth is good in last 4 quarters at 11.07%
Return on Equity has declined versus last 3 years average to 10.40%
SRF is a diversified conglomerate with a history dating back to 1970. The company is a prominent player in the manufacturing of industrial and specialty intermediates. As of FY2023, its business segments include chemicals (CB), packaging films (PF), technical textiles (TT) and others. For FY23, the chemicals business segment contributed 49.8% of the revenue, while the packaging films, technical textiles and others segments contributed 34.8%, 12.7% and 2.7% respectively.
The CB segment involves the production of fluoro-chemicals (including refrigerant gases, blends, and chloromethanes) and specialty chemicals for agricultural and pharmaceutical markets. In the PF segment, SRF manufactures biaxially oriented polypropylene (BOPP) and biaxially oriented polypropylene terephthalate (BOPET) used in flexible package covers and labels. The TT segment focuses on manufacturing nylon cord fabrics, belting fabrics, and industrial yarn.
SRF boasts a widespread operational footprint with 11 manufacturing units in India and additional units in South Africa, Thailand, and Hungary. The company's sales extend across more than 90 countries, and it employs over 7000 people. Geographically, India contributes 40% to the revenues, followed by USA (15%), Switzerland (6%), Belgium (6%), South Africa (4%), Thailand (4%), Germany (3%), and the rest of the world (22%). This global presence highlights SRF's standing as a significant player in the chemical industry.
What is the historical performance of the overall business?
The business has witnessed tremendous growth over the last 9 years. While the company earned below its cost of capital in 2014, the company has turned around due to its increased focus on chemicals and packaging films, allowing it to command high ROCEs. This has led to significant value creation for investors as the company has given a 49.4% return CAGR over the previous 9 years while the EPS and book value have increased by 32.4% and 19.3% respectively.
What is the financial performance of the various business segments?
Chemical Segment
Benefiting from extensive expertise in fluorine chemistry, SRF stands as the exclusive producer of key refrigerants in India. Fluorine is used in air conditioners, refrigerators, sprays, etc. due to its ability to efficiently transfer heat without being corrosive. In the specialty chemical sector, the company's sustained investment in research and development (R&D) and enhanced manufacturing capabilities set it apart, making it a unique player. This specialization extends to the export of products widely applied in pharmaceutical and agro-based industries.
The chemical segment is largely responsible for the growth of SRF over the past 6 years. The chemical division is responsible for more than 70% of the company’s EBIT, while it only contributes around 50% to the revenue. The disproportionate impact of the chemical segment makes it the most important division.
(Values in Rs. Crores)
FY24 has been a difficult year for SRF’s chemical division as the company has witnessed revenue and margin degrowth. The specialty chemical division continues to witness inventory destocking and geopolitical uncertainty which has impacted the supply chain. Raw material prices have stabilised and the company has capitalized ~ Rs. 1100 crores in capex during 9M and ~ Rs. 700 crores worth of projects are scheduled for commissioning in Q4 FY24. The company has launched 3 new products in the agrochemicals vertical while maintaining a robust pipeline for new and complex products.
The fluorochemical division has been impacted due to lower demand for refrigerants. Additionally, the agrochemical and pharmaceutical markets have witnessed sluggish growth which has impacted sales of this segment. PTFE (polytetrafluoroethylene) and R32plants were capitalized in Q3, with scale up in process. Furthermore, in January 2024, China initiated a freeze on HFC capacity as per the Montreal Protocol. These moves should further stabilise and grow the fluorochemical business.
Improvements in margin are guided from Q4FY24 onwards, and are in line with the general expectation of various chemical companies.
Technical Textile Segment
In the technical textile business (TT), SRF claims the title of the largest manufacturer of nylon tyre cord fabric in India, which is used in tyres to improve strength and durability. The company additionally manufactures belting fabrics for conveyor belts and polyester industrial yarn which is used in seatbelts.The continuous addition of new value-added products in belting fabrics and polyester industrial yarn within the TT segment is poised to strengthen its market position further.
The technical textiles business acts as the cash cow that has helped the company fund its growth initiatives. This division does not have any incremental investment with stable revenue and margins in the same range.
(Values in Rs. Crores)
The margins and return on capital employed for this segment are largely range-bound, barring short-term changes in the macroeconomic environment.
Packaging Films Business
In the packaging films business (PFB), SRF's substantial capacity and production of high-value-added products contribute to a robust market position. This advantageous position is anticipated to endure, supported by the company's leadership, established track record, and substantial R&D capabilities, which translate into technical expertise.
(Values in Rs. Crores)
BOPET and BOPP markets continued to witness an over-supply situation which has led to margin pressure. The company commenced its Aluminium Foil facility on January 1, 2024 at a cost of ~Rs. 536 crore. This facility will be gradually ramped up.
Company share prices are keep on changing according to the market conditions. The closing price of SRF on 23-May-2025 16:59 is ₹2,900.1.
What is the market cap of SRF?
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 23-May-2025 16:59 the market cap of SRF stood at ₹85,966.2.
What is the P/E ratio of SRF?
The latest P/E ratio of SRF as of 23-May-2025 16:59 is 67.79.
What is the P/B ratio of SRF?
The latest P/B ratio of SRF as of 23-May-2025 16:59 is 7.43.
What is the 52-week high and low of SRF?
The 52-week high of SRF is ₹3,095.8 and the 52-week low is ₹2,088.6.
What is the TTM revenue of SRF?
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of SRF is ₹11,377 ( Cr.) .
About SRF Ltd
SRF began as Shri Ram Fibres in 1970 when its parent company DCM decided to set up a separate entity to manufacture nylon tyre cord fibres. Its formation was a result of the foresight that nylon was the future material for tyre cord fibres. The company established its first plant in Manali near Chennai in 1973. Over the years, the company not only expanded its product range under the Technical Textiles but also diversified into many adjacent businesses. Besides Technical Textiles, the company’s business profile constitutes Fluorochemicals, Specialty Chemicals and Packaging Films. Equipped with state-of-the-art R&D facilities, the company boasts of its Chemical Technology Group that is actively involved in process innovations and product development.
Business area of the company
The Company is a chemical based multi-business entity engaged in the manufacturing of industrial and specialty intermediates. The company classifies its businesses as Technical Textiles, Chemicals, Packaging Films and Other Businesses.
Products
The company’s product portfolio broadly categorized into - Technical Textiles, Chemicals and Packaging Films.
Milestones
1970: Incorporated as Shri Ram Fibres
1973: The Company established its first plant in Manali near Chennai.
1974: Commenced operations of nylon tyre cord at Manali.
1977: Production of fishnet twines started.
1979: Commenced production of nylon engineering plastics.
1983: Commissioning of belting fabrics at Viralimalai.
1986: Set up SRF Finance Ltd.
1986: Commissioning of coated fabrics at Viralimalai.
1989: Entered Chemicals Business with production of refrigerants.
1990: Shri Ram Fibres renamed as SRF Ltd.
1993: Divested SRF Nippondenso.
1995: Commercial production of Chloromethanes.
1995: Ventured into Packaging Films Business.
1995: Started Vision Care Division at Bangalore.
1996: Set up the company’s first overseas plant (tyre cord) in Dubai.
1996: Acquired Ceat’s tyre cord fabrics plant situated at Gwalior.
1997: Divested Vision Care Division.
1997: Divested SRF Finance Ltd. to GE Capital.
2000: Acquired Dupont’s tyre cord fabrics plant situated at Gummidipoondi.
2002: Polyester films, fishnet twines and engineering plastics businesses spun off as a separate entity; SRF Polymers Ltd.
2004: Became the first tyre cord company outside Japan to win the Deming Prize.
2008: Acquired two foreign companies - Thailand based Thai Baroda Industries Limited (TBIL), a manufacturer of nylon tyre cord, and South Africa based Industex Technical Textile (Pty) Limited, a manufacturer of belting fabrics.
2009: Purchase of two businesses of SRF Polymers Ltd., the Engineering Plastics and the Industrial Yarn Business.
2009: Became the first Indian manufacturer of polyester industrial yarn (PIY) by setting up a 14,400 MT PIY for producing PIY to be used in radial tyres, conveys belts and coated fabrics.
2010: Ventured into Laminated Fabrics by setting up a green-field plant of 900 sqm annual capacity at Kashipur.
2012: Commenced operations in the newly commissioned Chemical Complex at Dehej in Gujarat.
2012: Wins the prestigious Deming Prize for the Chemicals Business.
2013: Set up green-field facility for BOPET films in Thailand.
2013: Ventured into BOPP films by setting up a green-field plant in South Africa.
2014: Scaled up its HFC 134a capacity by three fold to around 17,500 tonnes per annum with the commissioning for its second HFC 134a plant of 12,500 tpa capacity at Dahej.
2015: SRF acquires Global DuPont Dymel HFC 134a Pharma Business.
2017: SRF inks Pact to Buy Mexichem’s HFC-125 Assets.
Company quality is determined using minimum hurdle rate for return on capital employed and free cash flows for last 10 years.
Companies with smaller size have higher hurdle rate.
High quality stocks are important for long term investment.
Value
Valuation is computed by comparing relevant price multiples versus industry and its own history.
One unique and very important modification is our adjustment for company's financials for cyclicality and normalized profitability.
or based on whether current ratio is lower or higher than median values. See graph for better assessment.
Valuation is important for long term investment.
Actual valuation done by our Equity Analysts may differ from the Free DeciZen maker valuation. Subscribe to our premium products for more information on actual valuation
Price
Price rating is given based on stock price strength using moving averages and relative strength on shorter timeframe.
Short term time frame has little to no significance for long term investing but it can help in deciding how fast or how slow one can add a stock top your portfolio.
Only after a stock satisfies Quality and Value parameters, use price trend to build a position. Add slowly if price trend is Red or Orange. Add quickly if price trend is Green.
You have 2 views remaining as a Guest User. To get DeciZen Rating of 3,500+ Stocks based on their Quality, Valuation and Price Trend Login Now
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Disclaimer:
Registration granted by SEBI, membership of BASL and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
MoneyWorks4Me method for rating and ranking mutual funds for SIP
MoneyWorks4Me rating and ranking of funds for SIP is available to subscribers only. Moneyworks4Me is not a rating and
ranking agency, however it is required that users have a way of selecting funds and building a Portfolio. The method used by it are described below to enable users to understand the logic behind the rating and ranking Subscriber will find more details on this in the
various content made available from time to time. In case you need more please write to besafe@moneyworks4Me.com
MoneyWorks4Me rates and ranks mutual funds based on the following data-driven system:
Performance Consistency: This is measure based on whether the fund has beaten the benchmark index consistently. For
this we compare the 3-year rolling returns of the fund with the benchmark for a minimum of 5 years and preferable 10
years. The period of rolling is one month and holding period is 3 years. Fund are color-coded Green on Performance when
the fund beats the benchmark more than 90% of the time. It is Orange if it beats 80% to 90% of the time and Red if less
than 80%. Funds with less than 5 year data are color-coded Grey.
Quality of Portfolio Holding: Moneyworks4Me has color-coded stocks as Green, Orange and Red based on whether the
company's performance has generated a ROCE above a threshold level (cost of capital) over 10 years (minimum 6 years) and
generated positive Free Cash Flow. For Banks it checks whether ROE is greater than 15% and sales has grown over previous
year. Stocks that perform consistently on these combined metrics are color-coded Green (min score 14 out of 20), Orange
(between 8 and 14) and Red (less than 8 out of 20).
Fund are color-coded Green provided the portfolio has 70% holding in Green stocks but not more than 20% in Red stocks.
Funds with more than 20% Red stocks in the portfolio are color-coded Red. The rest are Orange funds
Funds ranking in screeners: Performance Consistency and Quality are two parameters used for ranking funds for SIP. The
ranking as follows GG, GO, GR, OG, OO, OR, RG, RO and RR.
With the same color-coded funds, the one with the higher Average 3-year rolling returns (over 5 to 10 years), the number
that appears in the Performance tag, ranks higher.
Here is the summary:
The third tag Upside Potential is not relevant for SIP. It is relevant for lumpsum investments in Mutual Funds.
Looking to make the most of market corrections and volatility?
Did you know that market corrections can actually present great opportunities to buy high-quality stocks at discounted prices? By taking advantage of these times of volatility, you can position your portfolio for long-term growth.
At MoneyWorks4me Portfolio Advisory, we specialize in helping investors navigate market fluctuations and build a strong, diversified portfolio. With our collaborative approach, you can maintain control over your investments while benefiting from our expertise and guidance.
If you're interested in learning more and with a minimum portfolio size of 25 L+, we can help you manage your portfolio, no matter the size. let's connect and discuss how we can work together. And as a bonus, we're offering a FREE Portfolio Review using our "Portfolio Manager" tool during our conversation.
So why wait?
Let's get started today and take your portfolio to the next level!
Best Buy Stocks
Do you want to Invest in Undervalued Handpicked stocks and earn high Returns?
Why Buy Quality Stocks
Winning and long lasting portfolio is made of Quality Stocks, but how simple is that?
Important Questions while Buying Stocks
As an Investor most important decision making questions are?
Make an informed decision for Stocks
Invest using an intelligent system with powerful data-driven tools that help you identify opportunities and make informed buy-hold-sell decisions
You can make an informed decision based on:
Q : Quality :- Q Very Good
Q Somewhat Good
Q Not Good
V : Valuation:- V+UnderValued (UV) V Somewhat UV
V Fair Value
V Somewhat OV
V+ OverValued (OV)
Buy quality Stocks when they are available at reasonable prices and supported by an upward price trend and Sell when they are Overvalued using the Decizen Rating System. Covers 3500+ stocks
Make an informed decision for Funds
You can make an informed decision based on:
P : Performance (%)* 14 Very Good
14 Somewhat Good
12 Not Good
Less than 5 year data
Q : Quality of Holding Q Very Good
Q Somewhat Good
Q Not Good
*Color code for outperformance consistency
*Number is average 3 year rolling returns
×
Want to invest successfully in stocks?
How the heck do you select a solution that ensures it?
Does it get you focused on meeting your financial goals?
Does it get you focused on meeting your financial goals?
Investing is to means to funding your goals. Your solution must help you get clarity of your goals and how you should invest to reach them. Does your solution include Financial Planning?
