SRF Ltd - Stock Valuation and Financial Performance

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

SRF Share Price

2,631.85 -13.60 -0.51%
as on 12-Apr'24 16:59

DeciZen - make an informed investing decision on SRF

Overall Rating
Bole Toh

1. Quality

2. Valuation

Overvalued

3. Price Trend

SRF stock performance -

mw4me loader
P/E Ratio (CD):
52.86
Market Cap:
78,014.6 Cr.
52-wk low:
2,050
52-wk high:
2,687.4

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 Overvalued zone.

3. Is SRF Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of SRF Ltd is likely to Rise 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'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 6.1%8.2%10.5%10.4%8.4%10.3%12.5%13.4%17.2%17.7%-
Value Creation
Index
-0.6-0.4-0.2-0.2-0.4-0.20.10.20.50.6-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 4,0184,5404,5934,8225,5897,1007,2098,40012,43414,87013,124
Sales YoY Gr.-13%1.2%5%15.9%27%1.6%16.5%48%19.6%-
Adj EPS 69.515.217.314.921.231.640.261.975.349.8
YoY Gr.-57.6%59.1%14%-13.5%41.7%49.5%26.9%54.2%21.5%-
BVPS (₹) 70.978.996.2110.8124.1143.6171.6231.4288.8348374.6
Adj Net
Profit
1732734354964296089091,1901,8362,2311,476
Cash Flow from Ops. 3475421,0906456788961,3041,7722,1062,902-
Debt/CF from Ops. 6.34.52.33.74.64.23.11.91.71.5-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 15.7%21.6%27.3%19.6%
Adj EPS 32.4%38.2%33.5%21.5%
BVPS19.3%22.9%26.6%20.5%
Share Price 41.9% 40.1% 29.6% 7.9%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
8.612.517.216.712.715.820.120.223.823.613.8
Op. Profit
Mgn %
131621.220.116.218.620.225.42524.422.2
Net Profit
Mgn %
4.369.510.37.78.612.614.214.81511.3
Debt to
Equity
1.11.10.90.80.90.90.80.50.40.4-
Working Cap
Days
12712512313014114914913612412275
Cash Conv.
Cycle
777761392932403539468

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 27.29%

Net Profit is growing at healthy rate in last 3 years 33.49%

Return on Equity has declined versus last 3 years average to 13.80%

Sales growth is not so good in last 4 quarters at -8.54%

Latest Financials - SRF Ltd.

Standalone Consolidated
TTM EPS (₹) 51.2 49.8
TTM Sales (₹ Cr.) 10,794 13,124
BVPS (₹.) 341.6 374.6
Reserves (₹ Cr.) 9,830 10,808
P/BV 7.70 7.03
PE 51.41 52.86
From the Market
52 Week Low / High (₹) 2050.00 / 2687.35
All Time Low / High (₹) 1.40 / 2864.35
Market Cap (₹ Cr.) 78,015
Equity (₹ Cr.) 296.4
Face Value (₹) 10
Industry PE 49.3

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

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales4,0184,5404,5934,8225,5897,1007,2098,40012,43414,870
Operating Expenses 3,5133,8223,6303,8534,6835,8035,7546,2679,33011,341
Manufacturing Costs6477327157829861,1201,2891,4212,2122,705
Material Costs2,3952,5482,3302,4193,0323,9673,6874,0196,0677,394
Employee Cost 299344373419458442518594742769
Other Costs 172199212234207273261233310474
Operating Profit 5057179639699061,2971,4552,1333,1033,529
Operating Profit Margin (%) 12.6%15.8%21.0%20.1%16.2%18.3%20.2%25.4%25.0%23.7%
Other Income 2465287311528496611675
Interest 96138130102124198201134116205
Depreciation 225245275283316358389453517575
Exceptional Items 0000000000
Profit Before Tax 2083995856575827689151,6132,5862,824
Tax 4697155142120177-1414697662
Profit After Tax 1623034305154625929161,1981,8892,162
PAT Margin (%) 4.0%6.7%9.4%10.7%8.3%8.3%12.7%14.3%15.2%14.5%
Adjusted EPS (₹)5.710.615.017.916.122.335.540.463.773.0
Dividend Payout Ratio (%)35%19%13%13%15%11%8%12%26%10%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 2,0672,2962,7633,1833,5654,1294,9326,8548,56210,315
Share Capital 5858585858595960297297
Reserves 2,0082,2382,7053,1243,5064,0704,8736,7948,26510,018
Minority Interest0000000000
Debt2,0332,0242,1301,9772,7583,2893,2672,9312,7953,863
Long Term Debt1,7131,7881,9401,4321,9072,1612,3121,9651,7532,312
Short Term Debt3202361895468511,1279559661,0421,551
Trade Payables7895817158091,0441,3821,1121,5852,0962,231
Others Liabilities 5819818179999961,0881,5521,5412,3112,326
Total Liabilities 5,4695,8836,4246,9688,3639,88810,86312,91115,76518,736

Fixed Assets

Gross Block6,1166,6814,3864,9635,9936,8377,9419,85610,90013,067
Accumulated Depreciation2,5652,7582735588711,2281,5742,0292,4743,017
Net Fixed Assets3,5523,9224,1134,4055,1225,6096,3687,8278,42510,050
CWIP 1111021132595597541,3937721,6722,406
Investments 3794165196122101203417321494
Inventories7467646718389581,2251,2011,4662,1382,274
Trade Receivables6916115146576811,0298911,2751,7921,786
Cash Equivalents 821073899697199125282459616
Others Assets2502834585188259726818739571,110
Total Assets 5,4695,8836,4246,9688,3639,88810,86312,91115,76518,736

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 3475421,0906456788961,3041,7722,1062,902
PBT 2083995856575828271,0711,6102,5862,824
Adjustment 300329392360405536401541586646
Changes in Working Capital -120-101221-256-191-317-24-124-664-60
Tax Paid -41-85-109-116-118-150-143-255-402-508
Cash Flow From Investing Activity -657-500-667-613-1,195-1,014-1,180-1,500-1,588-2,961
Capex -790-484-579-641-1,283-1,053-1,373-1,205-1,817-2,852
Net Investments 116-63-58-228433-93-189103-164
Others 1748-305045285-10612755
Cash Flow From Financing Activity 205-18-182-284495246-199-251-207220
Net Proceeds from Shares 000000073800
Net Proceeds from Borrowing 30427364-455409268320-68662174
Interest Paid -120-139-132-111-130-224-204-157-117-194
Dividend Paid -57-57-57-69-69-69-80-141-212-213
Others 77-95-56351284271-235-559454
Net Cash Flow -10624241-252-22127-7521311160
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)8.1714.0817.117.3313.6915.3820.2220.3424.5122.91
ROCE (%)7.7412.0514.3413.9811.4913.2713.2518.1724.1722.62
Asset Turnover Ratio0.860.860.80.770.760.760.70.720.870.87
PAT to CFO Conversion(x)2.141.792.531.251.471.511.421.481.111.34
Working Capital Days
Receivable Days51494242424548464543
Inventory Days55575354575761575253
Payable Days444455921121051121129480

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-Apr-2024 16:59 is ₹2,631.9.
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-Apr-2024 16:59 the market cap of SRF stood at ₹78,014.6.
The latest P/E ratio of SRF as of 12-Apr-2024 16:59 is 51.41.
The latest P/B ratio of SRF as of 12-Apr-2024 16:59 is 7.70.
The 52-week high of SRF is ₹2,687.4 and the 52-week low is ₹2,050.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of SRF is ₹10,794 ( 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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