SRF fundamental analysis highlights key financial metrics including market capitalization of ₹75,613 crore, PE ratio of 61.5, debt-to-equity ratio of 0.44, and return on equity of 12.22%. These figures reflect the company’s financial health and current market valuation.
Content:
SRF Ltd Overview
SRF Ltd is a diversified Indian conglomerate with a focus on technical textiles, chemicals, packaging films, and engineering plastics. Established in 1970, it has a strong global presence, driven by innovation and sustainable growth strategies.
The company has a market capitalization of ₹75,613 crore and is listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Currently, the stock is trading 34.8% below its 52-week high and 5.43% above its 52-week low.
SRF Financial Results
SRF Ltd’s financial results for FY24 show a decline in sales to ₹13,139 crore and net profit to ₹1,336 crore. Operating profit margins decreased to 20%, while EPS fell to ₹45.06.
- Revenue Trend: Sales increased from ₹12,434 crore in FY22 to ₹14,870 crore in FY23, but dropped to ₹13,139 crore in FY24, indicating revenue fluctuations.
- Equity and Liabilities: Expenses rose to ₹10,554 crore in FY24 from ₹9,330 crore in FY22, reflecting higher operational costs. Interest expenses and depreciation also increased, impacting net profit.
- Profitability: Operating profit fell to ₹2,584 crore in FY24 from ₹3,103 crore in FY22, with a decreased OPM of 20%. Net profit margin also declined due to rising costs.
- Earnings Per Share (EPS): EPS decreased to ₹45.06 in FY24 from ₹63.75 in FY22, reflecting reduced profitability despite stable sales.
- Return on Net Worth (RoNW): The net profit margin of 10.2% in FY24, down from 15.2% in FY23, indicates a lower return on net worth due to increased expenses and lower profitability.
- Financial Position: Despite higher EBITDA and other income, rising interest and depreciation costs, alongside a decreased dividend payout ratio, have impacted the overall financial health and shareholder returns.
SRF Financial Analysis
| FY 24 | FY 23 | FY 22 | |
| Sales | 13,139 | 14,870 | 12,434 |
| Expenses | 10,554 | 11,341 | 9,330 |
| Operating Profit | 2,584 | 3,529 | 3,103 |
| OPM % | 20 | 24 | 25 |
| Other Income | 83.02 | 74.93 | 115.51 |
| EBITDA | 2,667 | 3,604 | 3,219 |
| INTEREST | 302.29 | 204.82 | 115.93 |
| Depreciation | 672.62 | 575.32 | 517.23 |
| Profit Before Tax | 1,692 | 2,824 | 2,586 |
| Tax % | 21.07 | 23.43 | 26.94 |
| Net Profit | 1,336 | 2,162 | 1,889 |
| EPS | 45.06 | 72.95 | 63.75 |
| Dividend Payout % | 15.98 | 9.87 | 26.27 |
*All values in ₹ Crores
SRF Limited Company Metrics
SRF Ltd has a market cap of ₹75,613 crore and a current price of ₹2,551. With a PE ratio of 61.5 and an ROE of 12.2%, the stock shows moderate returns and financial stability.
- Market Cap: The company’s market capitalization stands at ₹75,613 crore, indicating its significant presence and valuation in the market, reflecting investor confidence and company size.
- Book Value: The book value is ₹387 per share, representing the company’s net asset value per share, providing a baseline for evaluating its stock price relative to its intrinsic value.
- Face Value: The face value of ₹10 per share signifies the nominal value assigned to the stock, which is used for calculating dividends and in accounting records.
- Turnover: With an asset turnover ratio of 0.67, the company efficiently generates sales relative to its assets, indicating effective use of assets to drive revenue.
- PE Ratio: The price-to-earnings ratio of 61.5 suggests the stock is trading at a high premium compared to its earnings, reflecting market expectations of future growth.
- Debt: The company has a debt of ₹5,031 crore and a debt-to-equity ratio of 0.44, showing a moderate level of leverage in its capital structure.
- ROE: A return on equity of 12.2% indicates the company’s ability to generate profits from shareholders’ equity, reflecting its effectiveness in using equity capital for growth.
- EBITDA Margin: The EBITDA margin of 18.8% reflects the company’s efficiency in generating earnings before interest, taxes, depreciation, and amortization relative to its revenue.
- Dividend Yield: With a dividend yield of 0.27%, the stock offers a modest return to shareholders through dividends, balancing between reinvestment in growth and shareholder returns.
SRF Ltd Stock Performance
The table shows an ROI of 35% over 5 years, 13% over 3 years, and 12% over 1 year, indicating a strong long-term performance and stable short-term returns.
| Period | Return on Investment (%) |
| 5 Years | 35% |
| 3 Years | 13% |
| 1 Year | 12% |
Examples:
5-Year Investment: A ₹1,00,000 investment grew to ₹1,35,000, reflecting a 35% return.
3-Year Investment: Investing ₹1,00,000 yielded ₹1,13,000, showing a 13% return over three years.
1-Year Investment: A ₹1,00,000 investment resulted in ₹1,12,000, achieving a 12% return.
SRF Ltd Peer Comparison
In the competitor analysis, SRF Ltd, with a market cap of ₹73,885 crore, shows moderate returns compared to peers. While Pidilite Inds. and BASF India has higher market caps and better returns, SRF’s performance is relatively stable.
| S.No. | Name | CMP Rs. | Mar Cap Rs.Cr. | PEG | 3mth return % | 1Yr return % |
| 1 | Pidilite Inds. | 3030.75 | 154129.07 | 6 | 0.42 | 19.44 |
| 2 | SRF | 2491.75 | 73885.1 | 3.82 | 9.73 | 8.71 |
| 3 | Linde India | 7163.65 | 61077.24 | 2.1 | -20.3 | 46.59 |
| 4 | Deepak Nitrite | 2846.65 | 38844.74 | 1.47 | 16.26 | 38.59 |
| 5 | Gujarat Fluoroch | 3345.6 | 36760.24 | -5.66 | 3.97 | 16.83 |
| 6 | Godrej Industrie | 890.05 | 30011.06 | -1.69 | 11.65 | 79.61 |
| 7 | BASF India | 6659.7 | 28825.32 | 0.55 | 44.07 | 167 |
SRF Ltd Shareholding Pattern
The shareholding Pattern of SRF Ltd shows a consistent promoter stake of around 50.26% to 50.53%. FIIs’ share slightly decreased from 19.78% to 18.74%. DIIs increased their stake to 16.6%, while retail investors’ holding declined from 15.56% to 14.43%.
| Jun 2024 | Mar 2024 | Dec 2023 | Sept 2023 | |
| Promoters | 50.26 | 50.3 | 50.53 | 50.53 |
| FII | 18.74 | 19.07 | 19.58 | 19.78 |
| DII | 16.6 | 16 | 14.54 | 14.15 |
| Retail & others | 14.43 | 14.65 | 15.35 | 15.56 |
*All values in %
SRF Ltd History
SRF Ltd was founded on January 9, 1970, in New Delhi, initially producing nylon tyre yarn and industrial fabrics. It was promoted by Cloth and General Mills Company Limited and later collaborated with Chemtex Fibre Inc. for technical expertise.
In 1980, the company rebranded from Shri Ram Fabrics Limited to SRF Limited. Over the years, SRF expanded its operations, setting up pilot plants and international subsidiaries, including SRF Overseas Limited in the UAE for synthetic industrial yarn processing.
By the late 1990s and early 2000s, SRF continued to grow through strategic partnerships and acquisitions, such as a joint venture with DuPont and investments in new projects. It expanded its portfolio and global presence, including setting up plants in Thailand and acquiring businesses in various sectors.
How To Invest In SRF Ltd Share?
Investing in SRF Ltd shares is a straightforward process:
- Open a Demat Account: Start by opening a Demat and trading account with a reliable brokerage firm like Alice Blue.
- Complete KYC: Submit necessary documents for KYC verification.
- Fund Your Account: Deposit funds into your trading account.
- Buy Shares: Search for SRF Ltd shares and place your buy order.
SRF Limited Fundamental Analysis – FAQs
SRF’s fundamental analysis reveals a market capitalization of ₹75,613 crore, a PE ratio of 61.5, a debt-to-equity ratio of 0.44, and a return on equity of 12.22%. These metrics indicate the company’s financial stability and market valuation.
The market capitalization of SRF Ltd is ₹75,613 crore. This figure represents the total value of the company’s outstanding shares in the stock market, calculated by multiplying the current share price by the total number of shares outstanding.
SRF Limited is a leading Indian multinational company specializing in chemicals, including fluorochemicals specialty chemicals, and technical textiles. It operates across diverse sectors such as refrigeration, industrial chemicals, and packaging materials, catering to global and domestic markets.
SRF Ltd is primarily owned by the Khemka family, with prominent figures such as Ashish Khemka and R. S. Khemka holding substantial stakes. The company is publicly traded, so ownership also includes institutional and retail shareholders.
The main shareholders of SRF Ltd include institutional investors like LIC, mutual funds, and foreign portfolio investors. Promoters, including the Khemka family, hold a significant portion of the shares. Ownership details can be verified in the latest shareholding pattern reports.
SRF Ltd operates in the chemicals industry, specializing in fluorochemicals, speciality chemicals, and technical textiles. The company is known for its diverse product range, including refrigerants, industrial chemicals, and high-performance materials for various industrial applications.
To invest in SRF Ltd shares, open a brokerage account with Alice Blue, research SRF Ltd financials and market position, decide on the number of shares, and place an order through your broker. Monitor the investment regularly to manage risks and returns.
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
