SRF Ltd - Stock Valuation and Financial Performance

BSE: 503806 | NSE: SRF | Chemicals | Mid Cap

SRF Share Price

2,389.20 -2.90 -0.12%
as on 12-Jul'24 16:01

DeciZen - make an informed investing decision on SRF

Overall Rating
Bole Toh

1. Quality

2. Valuation

Somewhat overvalued

3. Price Trend

Semi Strong

SRF stock performance -

mw4me loader
P/E Ratio (CD):
53.02
Market Cap:
70,821.8 Cr.
52-wk low:
2,050
52-wk high:
2,697.5

Is SRF Ltd an attractive stock to invest in?

1. Is SRF Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that SRF Ltd is a good quality company.

2. Is SRF Ltd undervalued or overvalued?

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.

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'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
ROCE % 8.2%10.5%10.4%8.4%10.3%12.5%13.4%17.2%17.7%10.3%-
Value Creation
Index
-0.4-0.2-0.2-0.4-0.20.10.20.50.6-0.1-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 4,5404,5934,8225,5897,1007,2098,40012,43414,87013,13913,139
Sales YoY Gr.-1.2%5%15.9%27%1.6%16.5%48%19.6%-11.7%-
Adj EPS 9.515.217.314.921.231.640.261.975.346.845.1
YoY Gr.-59.1%14%-13.5%41.7%49.5%26.9%54.2%21.5%-37.9%-
BVPS (₹) 78.996.2110.8124.1143.6171.6231.4288.8348386.5386.5
Adj Net
Profit
2734354964296089091,1901,8362,2311,3861,336
Cash Flow from Ops. 5421,0906456788961,3041,7722,1062,9022,094-
Debt/CF from Ops. 4.52.33.74.64.23.11.91.71.52.4-

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%
BVPS19.3%21.9%18.7%11.1%
Share Price 36.4% 34.2% 16.3% 9.9%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
Return on
Equity %
12.517.216.712.715.820.120.223.823.612.711.7
Op. Profit
Mgn %
1621.220.116.218.620.225.42524.420.320.6
Net Profit
Mgn %
69.510.37.78.612.614.214.81510.610.2
Debt to
Equity
1.10.90.80.90.90.80.50.40.40.40.2
Working Cap
Days
12512313014114914913612412214576
Cash Conv.
Cycle
776139293240353946603

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 16.08%

Return on Equity has declined versus last 3 years average to 11.70%

Net Profit has been subdued in last 3 years 5.20%

Sales growth is not so good in last 4 quarters at -11.50%

Latest Financials - SRF Ltd.

Standalone Consolidated
TTM EPS (₹) 46.4 45.1
TTM Sales (₹ Cr.) 10,787 13,139
BVPS (₹.) 354 386.5
Reserves (₹ Cr.) 10,196 11,161
P/BV 6.75 6.18
PE 51.54 53.02
From the Market
52 Week Low / High (₹) 2050.00 / 2697.45
All Time Low / High (₹) 1.40 / 2864.35
Market Cap (₹ Cr.) 70,822
Equity (₹ Cr.) 296.4
Face Value (₹) 10
Industry PE 56.6

Management X-Ray of SRF:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of SRF

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Sales4,5404,5934,8225,5897,1007,2098,40012,43414,87013,139
Operating Expenses 3,8223,6303,8534,6835,8035,7546,2679,33011,34110,554
Manufacturing Costs7327157829861,1201,2891,4212,2122,7052,444
Material Costs2,5482,3302,4193,0323,9673,6874,0196,0677,3946,709
Employee Cost 344373419458442518594742769893
Other Costs 199212234207273261233310474509
Operating Profit 7179639699061,2971,4552,1333,1033,5292,584
Operating Profit Margin (%) 15.8%21.0%20.1%16.2%18.3%20.2%25.4%25.0%23.7%19.7%
Other Income 6528731152849661167583
Interest 138130102124198201134116205302
Depreciation 245275283316358389453517575673
Exceptional Items 0000000000
Profit Before Tax 3995856575827689151,6132,5862,8241,692
Tax 97155142120177-1414697662357
Profit After Tax 3034305154625929161,1981,8892,1621,336
PAT Margin (%) 6.7%9.4%10.7%8.3%8.3%12.7%14.3%15.2%14.5%10.2%
Adjusted EPS (₹)10.615.017.916.122.335.540.463.773.045.1
Dividend Payout Ratio (%)19%13%13%15%11%8%12%26%10%16%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24

Equity and Liabilities

Shareholders Fund 2,2962,7633,1833,5654,1294,9326,8548,56210,31511,459
Share Capital 58585858595960297297297
Reserves 2,2382,7053,1243,5064,0704,8736,7948,26510,01811,161
Minority Interest0000000000
Debt2,0242,1301,9772,7583,2893,2672,9312,7953,8633,844
Long Term Debt1,7881,9401,4321,9072,1612,3121,9651,7532,3122,251
Short Term Debt2361895468511,1279559661,0421,5511,593
Trade Payables5817158091,0441,3821,1121,5852,0962,2312,198
Others Liabilities 9818179999961,0881,5521,5412,3112,3262,954
Total Liabilities 5,8836,4246,9688,3639,88810,86312,91115,76518,73620,454

Fixed Assets

Gross Block6,6814,3864,9635,9936,8377,9419,85610,90013,06316,864
Accumulated Depreciation2,7582735588711,2281,5742,0292,4743,0133,623
Net Fixed Assets3,9224,1134,4055,1225,6096,3687,8278,42510,05013,242
CWIP 1021132595597541,3937721,6722,406805
Investments 94165196122101203417321494527
Inventories7646718389581,2251,2011,4662,1382,2742,326
Trade Receivables6115146576811,0298911,2751,7921,7861,943
Cash Equivalents 1073899697199125282459616408
Others Assets2834585188259726818739571,1101,204
Total Assets 5,8836,4246,9688,3639,88810,86312,91115,76518,73620,454

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Cash Flow From Operating Activity 5421,0906456788961,3041,7722,1062,9022,094
PBT 3995856575828271,0711,6102,5862,8241,692
Adjustment 329392360405536401541586646899
Changes in Working Capital -101221-256-191-317-24-124-664-60-114
Tax Paid -85-109-116-118-150-143-255-402-508-383
Cash Flow From Investing Activity -500-667-613-1,195-1,014-1,180-1,500-1,588-2,961-2,227
Capex -484-579-641-1,283-1,053-1,373-1,205-1,817-1415
Net Investments -63-58-228433-93-189103-3,002-2,266
Others 48-305045285-1061275523
Cash Flow From Financing Activity -18-182-284495246-199-251-207220-72
Net Proceeds from Shares 000000738000
Net Proceeds from Borrowing 27364-455409268320-68662174506
Interest Paid -139-132-111-130-224-204-157-117-194-361
Dividend Paid -57-57-69-69-69-80-141-212-213-214
Others -95-56351284271-235-559454-2
Net Cash Flow 24241-252-22127-7521311160-205
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Ratios
ROE (%)14.0817.117.3313.6915.3820.2220.3424.5122.9112.27
ROCE (%)12.0514.3413.9811.4913.2713.2518.1724.1722.6112.83
Asset Turnover Ratio0.860.80.770.760.760.70.720.870.870.69
PAT to CFO Conversion(x)1.792.531.251.471.511.421.481.111.341.57
Working Capital Days
Receivable Days49424242454846454351
Inventory Days57535457576157525363
Payable Days445592112105112112948086

SRF Ltd Stock News

SRF Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of SRF on 12-Jul-2024 16:01 is ₹2,389.2.
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 12-Jul-2024 16:01 the market cap of SRF stood at ₹70,821.8.
The latest P/E ratio of SRF as of 12-Jul-2024 16:01 is 51.54.
The latest P/B ratio of SRF as of 12-Jul-2024 16:01 is 6.75.
The 52-week high of SRF is ₹2,697.5 and the 52-week low is ₹2,050.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of SRF is ₹10,787 ( 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.
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