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Last Updated on: 13 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of SRF Ltd

Basic Stock Data

Last Updated: June 12, 2024, 10:21 pm

Market Cap 70,131 Cr.
Current Price 2,366
High / Low2,697/2,040
Stock P/E52.7
Book Value 387
Dividend Yield0.31 %
ROCE12.7 %
ROE12.2 %
Face Value 10.0
PEG Ratio10.74

Competitors of SRF Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Shree Pushkar Chemicals & Fertilizers Ltd 608 Cr. 192242/15516.4 1500.78 %9.15 %8.13 % 10.0
S H Kelkar & Company Ltd (SHK) 2,555 Cr. 185232/11120.9 87.61.08 %12.4 %10.8 % 10.0
Jubilant Industries Ltd 2,157 Cr. 1,4321,463/47540.6 1550.00 %23.8 %24.3 % 10.0
Andhra Sugars Ltd 1,545 Cr. 114129/92.019.6 1171.75 %5.73 %5.06 % 2.00
Blue Pearl Texspin Ltd 1.19 Cr. 46.446.4/31.4 7.030.00 %32.6 %% 10.0
Industry Average1,373.24 Cr393.8819.50103.330.72%16.74%9.66%8.40

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales2,6082,6992,8393,3463,5493,8953,7283,4703,7783,3383,1773,0533,570
Expenses1,9652,0282,1642,4642,6012,9002,9592,6362,8462,6422,5512,4872,874
Operating Profit643672675881948995769834932696626566696
OPM %25%25%24%26%27%26%21%24%25%21%20%19%19%
Other Income1314111171033102212291923
Interest26272329363244626666796790
Depreciation118123130132132131139151155157161169186
Profit before tax511535532730788842618631733486415348443
Tax %25%26%28%31%23%28%22%19%23%26%27%27%5%
Net Profit381395382506606608481511562359301253422
EPS in Rs12.8613.3512.9117.0520.4320.5116.2317.2418.9712.1210.158.5514.24

Last Updated: June 10, 2024, 6:04 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 27, 2024, 6:09 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales3,7834,0184,5404,5934,8225,5897,1007,2098,40012,43414,87013,139
Expenses3,1693,5133,8223,6303,8524,6835,8035,7546,2679,33011,34110,554
Operating Profit6145057179639699061,2971,4552,1333,1033,5292,584
OPM %16%13%16%21%20%16%18%20%25%25%24%20%
Other Income422465287311578152661167583
Interest10096138130102124198201134116205302
Depreciation209225245275283316358389453517575673
Profit before tax3482083995856575828181,0181,6122,5862,8241,692
Tax %27%22%24%27%22%21%22%-0%26%27%23%21%
Net Profit2531623034305154626421,0191,1981,8892,1621,336
EPS in Rs8.815.6610.5514.9717.9416.0822.3335.4640.4463.7272.9545.06
Dividend Payout %23%36%19%14%14%15%11%8%12%26%10%16%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-35.97%87.04%41.91%19.77%-10.29%38.96%58.72%17.57%57.68%14.45%-38.21%
Change in YoY Net Profit Growth (%)0.00%123.01%-45.12%-22.15%-30.06%49.25%19.76%-41.16%40.11%-43.23%-52.66%

Growth

Compounded Sales Growth
10 Years:15%
5 Years:22%
3 Years:27%
TTM:-9%
Compounded Profit Growth
10 Years:25%
5 Years:36%
3 Years:29%
TTM:-33%
Stock Price CAGR
10 Years:42%
5 Years:38%
3 Years:26%
1 Year:2%
Return on Equity
10 Years:20%
5 Years:22%
3 Years:23%
Last Year:23%

Last Updated: May 1, 2024, 8:29 am

Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital58585858585858585860297297297
Reserves1,7931,9102,0082,2382,7053,1243,5064,0714,8756,7968,26810,03010,554
Borrowings1,2281,7042,1752,4352,5152,3963,1423,7304,1353,4693,6554,4784,976
Other Liabilities8889021,2271,1521,1461,3891,6572,0281,7952,5863,5443,9313,827
Total Liabilities3,9684,5755,4695,8836,4246,9688,3639,88810,86212,91115,76518,73619,655
Fixed Assets2,0782,3403,5513,9224,1134,4055,1225,6096,3687,8278,42510,05010,856
CWIP4175651121041172595597541,3937721,6722,4062,683
Investments1411513794165196122101203417321494573
Other Assets1,3321,5181,7691,7622,0292,1092,5613,4242,8993,8955,3475,7865,542
Total Assets3,9684,5755,4695,8836,4246,9688,3639,88810,86212,91115,76518,73619,655

Reserves and Borrowings Chart

SRF Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 6654233475421,0906456788961,3041,7722,1062,902
Cash from Investing Activity -563-672-657-500-667-613-1,174-1,039-1,179-1,499-1,586-2,964
Cash from Financing Activity -53300205-18-182-284495246-199-251-207220
Net Cash Flow4850-10624241-252-1103-7322312158

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow613.00503.00715.00961.00967.00903.00-2.00-3.00-1.000.00-1.00-3.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days496349415044534555534454
Inventory Days95114110105126115113119133129112127
Days Payable8812083112122126127110144126110120
Cash Conversion Cycle565675345434385445554661
Working Capital Days164829162634411248544557
ROCE %12%8%11%14%14%11%14%14%18%24%22%13%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters50.77%50.77%50.73%50.73%50.73%50.53%50.53%50.53%50.53%50.53%50.53%50.31%
FIIs18.39%19.18%19.09%19.60%19.21%19.21%18.31%18.52%20.04%19.80%19.60%19.09%
DIIs11.90%10.42%9.16%8.72%9.37%14.03%14.85%14.92%13.71%14.12%14.51%15.97%
Public18.94%19.64%21.02%20.95%20.69%16.23%16.29%16.01%15.72%15.57%15.36%14.66%
No. of Shareholders72,1271,09,9902,08,6102,14,6962,53,4932,46,9432,63,3282,60,4232,54,1692,71,1702,59,4572,34,321

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Kotak Flexicap Fund - Regular Plan7,150,0003.981772.66370,0902024-06-111831.96%
Kotak Emerging Equity Fund - Regular Plan1,778,9551.14441.05370,0902024-06-11380.68%
Kotak Equity Opportunities Fund - Regular Plan1,498,6072.09371.54370,0902024-06-11304.93%
HDFC Top 100 Fund - Regular Plan1,388,0251.14344.13370,0902024-06-11275.05%
Mirae Asset Large & Midcap Fund1,216,9560.93301.71370,0902024-06-11228.83%
Mirae Asset Large Cap Fund1,157,0700.76286.87370,0902024-06-11212.65%
Mirae Asset ELSS Tax Saver Fund752,0230.91186.45370,0902024-06-11103.2%
Mirae Asset Focused Fund683,2091.83169.38370,0902024-06-1184.61%
Aditya Birla Sun Life ELSS Tax Saver Fund391,4180.6597.04370,0902024-06-115.76%
HDFC Large and Mid Cap Fund - Regular Plan370,0900.6191.75370,0902024-06-110%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)45.0672.9563.7540.57177.29
Diluted EPS (Rs.)45.0672.9563.7540.57177.29
Cash EPS (Rs.)67.5292.0480.89273.98240.63
Book Value[Excl.RevalReserv]/Share (Rs.)385.93347.20287.971137.81843.30
Book Value[Incl.RevalReserv]/Share (Rs.)385.93347.20287.971137.81843.30
Revenue From Operations / Share (Rs.)441.72499.94418.021393.971232.38
PBDIT / Share (Rs.)89.67121.17108.21365.03257.09
PBIT / Share (Rs.)67.06101.8390.82289.84190.66
PBT / Share (Rs.)56.8994.9486.93267.62156.36
Net Profit / Share (Rs.)44.9172.7063.51198.79174.20
NP After MI And SOA / Share (Rs.)44.9172.7063.51198.79174.20
PBDIT Margin (%)20.3024.2325.8826.1820.86
PBIT Margin (%)15.1820.3621.7220.7915.47
PBT Margin (%)12.8718.9920.7919.1912.68
Net Profit Margin (%)10.1614.5415.1914.2614.13
NP After MI And SOA Margin (%)10.1614.5415.1914.2614.13
Return on Networth / Equity (%)11.6320.9322.0517.4720.65
Return on Capital Employeed (%)13.2921.8823.8318.6614.73
Return On Assets (%)6.5211.5211.979.269.36
Long Term Debt / Equity (X)0.190.220.200.280.46
Total Debt / Equity (X)0.420.420.410.420.66
Asset Turnover Ratio (%)0.660.770.760.640.67
Current Ratio (X)1.031.171.181.100.87
Quick Ratio (X)0.600.710.700.690.51
Inventory Turnover Ratio (X)2.912.762.952.642.74
Dividend Payout Ratio (NP) (%)0.009.8711.2111.797.89
Dividend Payout Ratio (CP) (%)0.007.798.808.555.71
Earning Retention Ratio (%)0.0090.1388.7988.2192.11
Cash Earning Retention Ratio (%)0.0092.2191.2091.4594.29
Interest Coverage Ratio (X)8.8217.6027.7616.427.49
Interest Coverage Ratio (Post Tax) (X)5.4211.5617.299.955.56
Enterprise Value (Cr.)80584.4775307.6182747.8235228.2819400.51
EV / Net Operating Revenue (X)6.135.066.664.192.69
EV / EBITDA (X)30.2120.8925.7116.0212.90
MarketCap / Net Operating Revenue (X)5.794.816.413.882.26
Retention Ratios (%)0.0090.1288.7888.2092.10
Price / BV (X)6.636.939.304.753.30
Price / Net Operating Revenue (X)5.794.816.413.882.26
EarningsYield0.010.030.020.030.06

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 2,495.89

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 5.49% compared to the current price 2366

Intrinsic Value: 2,618.40

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 10.67% compared to the current price ₹2366

Last 5 Year EPS CAGR: 4.91%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (5,059.42 cr) compared to borrowings (3,238.75 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (7.08 cr) and profit (300.33 cr) over the years.
  1. The stock has a low average ROCE of 14.58%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 35.50, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 50.67, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in SRF Ltd:
    1. Net Profit Margin: 10.16%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 13.29% (Industry Average ROCE: 16.74%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 11.63% (Industry Average ROE: 9.66%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 5.42
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.60
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. ✗ Stock P/E: 52.7 (Industry average Stock P/E: 19.5)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.42
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company

SRF Ltd. is a Public Limited Listed company incorporated on 09/01/1970 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L18101DL1970PLC005197 and registration number is 005197. Currently Company is involved in the business activities of Manufacture of basic chemicals, fertilizer and nitrogen compounds, plastics and synthetic rubber in primary forms. Company’s Total Operating Revenue is Rs. 9953.44 Cr. and Equity Capital is Rs. 297.44 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Chemicals - OthersUnit Nos. 236 & 237, 2nd Floor, DLF Galleria, Mayur Place, Delhi Delhi 110091info@srf.com
http://www.srf.com
Management
NamePosition Held
Mr. Arun Bharat RamChairman Emeritus
Mr. Ashish Bharat RamChairman & Managing Director
Mr. Kartik Bharat RamJoint Managing Director
Mr. Pramod G GujarathiDirector
Mr. Yash GuptaIndependent Director
Mr. Raj Kumar JainIndependent Director
Mr. Lakshman LakshminarayanIndependent Director
Mr. Puneet Yadu DalmiaIndependent Director
Mr. Tejpreet S ChopraIndependent Director
Ms. Bharti Gupta RamolaIndependent Director
Mr. Vellayan SubbiahNon Exe.Non Ind.Director

FAQ

What is the latest fair value of SRF Ltd?

The latest fair value of SRF Ltd is ₹2495.89.

What is the Market Cap of SRF Ltd?

The Market Cap of SRF Ltd is 70,131 Cr..

What is the current Stock Price of SRF Ltd as on 13 June 2024?

The current stock price of SRF Ltd as on 13 June 2024 is ₹2,366.

What is the High / Low of SRF Ltd stocks in FY 2024?

In FY 2024, the High / Low of SRF Ltd stocks is 2,697/2,040.

What is the Stock P/E of SRF Ltd?

The Stock P/E of SRF Ltd is 52.7.

What is the Book Value of SRF Ltd?

The Book Value of SRF Ltd is 387.

What is the Dividend Yield of SRF Ltd?

The Dividend Yield of SRF Ltd is 0.31 %.

What is the ROCE of SRF Ltd?

The ROCE of SRF Ltd is 12.7 %.

What is the ROE of SRF Ltd?

The ROE of SRF Ltd is 12.2 %.

What is the Face Value of SRF Ltd?

The Face Value of SRF Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in SRF Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE