SRF Limited

Industrials — Conglomerates · NSE

₹2,472.10−₹20.70 (−0.83%)

DalalBaazaar Score

57 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Low

No individual risk factor stands out on this snapshot.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:47 pm

Understanding the Business

Company site ↗

The 60-second version of SRF Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

SRF Limited manufactures, purchases, and sells technical textiles, chemicals, packaging films, and other polymers. It operates through Technical Textiles Business, Chemicals Business, Performance Films and Foil Business, and Others segments.

IndustryConglomerates

SectorIndustrials

Employees7,686

Annual revenue₹15,416 Cr

How does it make money?

Turns over ₹15,416 Cr a year. Of every ₹100 of sales, about ₹12 reaches shareholders as profit, with ₹22 left at the operating level before interest, tax and depreciation. Each of its 7,686 employees supports ₹2.01 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.01 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 14.5% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE15.2%

What is the outlook?

26 analysts covering the stock expect revenue to grow about 11.1% and earnings to grow about 12.0% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+11.1%

Est. earnings growth+12.0%

Analysts26

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +6% while net margin moved -20% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+6%

Margin effect-20%

DalalBaazaar Score

57/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 1.8% — barely ahead of inflation
✗ Profit has declined at 5.3% a year

Quality vs. Valuation

Company Quality

55/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

68/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

33.8x

3Y Median

56.9x

40 monthly readings · mean 51.5x · range 30.1x–72.9x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 41% below its 3y median of 56.9x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 62% below the peer median of 88.8x.

vs. its own history

Cheap

56.9x median over 40 months · -41%

vs. sector peers

Cheap

88.8x median of 3 peers · -62%

vs. generic bands

Fair

15x–35x

EV/EBITDA

22.5x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Cash generation is improving
Free cash flow is up 1953% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Margins are compressing
EBITDA margin has slipped from 24.3% to 22.4% over 3 years.
Return on equity is falling
ROE has dropped from 20.9% to 13.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 21.6% to 14.5% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 watch

🟡Receivables growing faster than salesFinancial
Receivables up 43% against revenue up 6% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 41% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 62% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹738 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 24.3% to 22.4%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 43% against revenue up 6%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 1.8% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 20.9% to 13.1%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 20%✓ 22.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✗ 1.8% CAGR
Latest reported year was 31.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹738 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 11%✓ 14.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 5 neutral · 1 weak

Market Cap

₹73,275 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

33.8x

Fair

Fairly valued against the generic band

P/B Ratio

5.22x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹73.16

Profitable

Profitable on a per-share basis

ROE

13.1%

Moderate

Moderate capital efficiency

ROCE

14.5%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.36x

Low

Conservative leverage

Revenue Growth (YoY)

31.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

75.6%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.40%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹738 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

27.4x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

22.2%

Good

Healthy core-business profitability

Net Margin

12.7%

Good

Strong bottom-line conversion

Current Ratio

1.10

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.16

Defensive

Steadier than the market

52W Range Position

14%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

2496.2 / 2540.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

40.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹14,592 Cr	₹12,910 Cr	₹14,358 Cr	₹15,416 Cr	+1.8%
EBITDA	₹3,550 Cr	₹2,616 Cr	₹2,762 Cr	₹3,459 Cr	-0.9%
EBITDA Margin	24.3%	20.3%	19.2%	22.4%	—
PAT (Net Profit)	₹2,162 Cr	₹1,336 Cr	₹1,251 Cr	₹1,835 Cr	-5.3%
EPS	₹72.95	₹45.06	₹42.2	₹61.91	-5.3%
ROE	20.9%	11.6%	9.9%	13.1%	—
ROCE	21.6%	13.1%	12.7%	14.5%	—
Total Debt	₹4,478 Cr	₹5,031 Cr	₹4,726 Cr	₹5,187 Cr	+5.0%
Free Cash Flow	₹36 Cr	-₹123 Cr	₹1,256 Cr	₹738 Cr	+173.8%

🟡 Revenue has been broadly flat over 3 years (1.8% a year).

🟡 EBITDA has been broadly flat over 3 years (-0.9% a year).

🔴 EBITDA Margin has fallen from 24.3% to 22.4% over 3 years (-1.9 pts).

🔴 PAT (Net Profit) has shrunk at 5.3% a year over 3 years.

🔴 EPS has shrunk at 5.3% a year over 3 years.

🔴 ROE has fallen from 20.9% to 13.1% over 3 years (-7.9 pts).

🔴 ROCE has fallen from 21.6% to 14.5% over 3 years (-7.1 pts).

🔴 Total Debt has grown at 5.0% a year over 3 years.

🟢 Free Cash Flow has grown at 173.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹24,147 Cr

Total Liabilities

₹10,104 Cr

Cash & Equivalents

₹590 Cr

Operating Cash Flow

₹2,554 Cr

Capex

-₹1,815 Cr

Shareholding (proxy)

Institutional Holding

29.5%

Insider Holding

52.4%

Corporate Actions

Next Earnings

26 Oct 2026

Dividend Rate

₹10

Ex-Dividend Date

28 Jul 2026

Analyst Consensus

Recommendations

17 Buy · 5 Hold · 7 Sell

Target Price (Mean)

₹2,923.24

+18.2% vs CMP

Target Range

₹2,209 – ₹3,604

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

3 mixed3 general

SRF Share Price - Live NSE: SRF Stock Price & Chart

Upstox, 16 Oct

SRF (NSEI:SRF) Stock Forecast & Analyst Predictions

Simply Wall Street, 14 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

SRF Share Price Update: Rs 2,524.25 and Chemicals Analysis

Univest, 08 Oct

SRF Shares Decline 2% Amidst Bearish Sentiment

Moneycontrol.com, 11 AugPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Explained - Here's why HSBC expects a 33% upside on SRF shares

CNBC TV18, 17 Sept

SRF tanks 9% post June quarter results; board approves ₹250 cr capex

Business Standard, 23 JulResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Risk

MiddlingBusiness Quality · Profitability · Valuation

WeakGrowth

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you.

1 of 5 tripwires tripped — Revenue growth stays above 4% a year · see Key things to watch ↑