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Last Updated on: 27 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of SRF Ltd

About the Company - SRF Ltd

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

SRF Ltd. Share Price Update

Share PriceValue
Today₹2,400.05
Previous Day₹2,383.60

Basic Stock Data of SRF Ltd

Market Cap 70,665 Cr.
Current Price 2,384
High / Low2,637/2,040
Stock P/E47.9
Book Value 366
Dividend Yield0.30 %
ROCE22.4 %
ROE22.8 %
Face Value 10.0

Data Source: screener.in

Competitors of SRF Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Navin Fluorine International Ltd 15,621 Cr. 3,1514,950/3,00153.0 4570.22 %20.4 %18.2 % 2.00
Tamil Nadu Petro Products Ltd 849 Cr. 94.4114/68.413.6 93.61.58 %15.1 %11.8 % 10.0
S H Kelkar & Company Ltd (SHK) 2,855 Cr. 206226/81.630.4 82.50.94 %8.04 %6.66 % 10.0
Hindcon Chemicals Ltd 296 Cr. 57.869.7/15.351.5 9.070.17 %14.3 %10.6 % 2.00
Shree Pushkar Chemicals & Fertilizers Ltd 603 Cr. 191242/14016.4 1440.79 %11.6 %8.91 % 10.0
Industry Average4,044.80 Cr740.0432.98157.230.74%13.89%11.23%6.80

SRF Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales2,1462,6082,6992,8393,3463,5493,8953,7283,4703,7783,3383,1773,053
Expenses1,5801,9652,0282,1642,4642,6012,9002,9592,6362,8462,6422,5512,487
Operating Profit566643672675881948995769834932696626566
OPM %26%25%25%24%26%27%26%21%24%25%21%20%19%
Other Income2213141111710331022122919
Interest28262723293632446266667967
Depreciation117118123130132132131139151155157161169
Profit before tax443511535532730788842618631733486415348
Tax %27%25%26%28%31%23%28%22%19%23%26%27%27%
Net Profit325381395382506606608481511562359301253
EPS in Rs10.9612.8613.3512.9117.0520.4320.5116.2317.2418.9712.1210.158.55

SRF Ltd Quarterly Chart

SRF Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales4,0043,7834,0184,5404,5934,8225,5897,1007,2098,40012,43414,87013,347
Expenses3,1703,1693,5133,8223,6303,8524,6835,8035,7546,2679,33011,34110,527
Operating Profit8356145057179639699061,2971,4552,1333,1033,5292,820
OPM %21%16%13%16%21%20%16%18%20%25%25%24%21%
Other Income28422465287311578152661167582
Interest11710096138130102124198201134116205278
Depreciation184209225245275283316358389453517575641
Profit before tax5623482083995856575828181,0181,6122,5862,8241,982
Tax %33%27%22%24%27%22%21%22%-0%26%27%23%
Net Profit3792531623034305154626421,0191,1981,8892,1621,476
EPS in Rs13.198.815.6610.5514.9717.9416.0822.3335.4640.4463.7272.9549.79
Dividend Payout %22%23%36%19%14%14%15%11%8%12%26%10%

SRF Ltd Profit & Loss Yearly Chart

SRF Ltd 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:49%
5 Years:41%
3 Years:31%
1 Year:6%
Return on Equity
10 Years:20%
5 Years:22%
3 Years:23%
Last Year:23%

SRF Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital58585858585858585860297297296
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

SRF Ltd 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

SRF Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days444963494150445345555344
Inventory Days7795114110105126115113119133129112
Days Payable848812083112122126127110144126110
Cash Conversion Cycle375656753454343854455546
Working Capital Days241648291626344112485445
ROCE %23%12%8%11%14%14%11%14%14%18%24%22%

SRF Ltd Financial Efficiency Indicators Chart

SRF Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters50.77%50.77%50.77%50.73%50.73%50.73%50.53%50.53%50.53%50.53%50.53%50.53%
FIIs18.43%18.39%19.18%19.09%19.60%19.21%19.21%18.31%18.52%20.04%19.80%19.60%
DIIs11.16%11.90%10.42%9.16%8.72%9.37%14.03%14.85%14.92%13.71%14.12%14.51%
Public19.64%18.94%19.64%21.02%20.95%20.69%16.23%16.29%16.01%15.72%15.57%15.36%
No. of Shareholders73,51372,1271,09,9902,08,6102,14,6962,53,4932,46,9432,63,3282,60,4232,54,1692,71,1702,59,457

SRF Ltd Shareholding Pattern Chart

No. of SRF Ltd Shareholders

SRF Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Kotak Flexicap Fund - Regular Plan71500003.981772.66
Kotak Emerging Equity Fund - Regular Plan17789551.14441.05
Kotak Equity Opportunities Fund - Regular Plan14986072.09371.54
HDFC Top 100 Fund - Regular Plan13880251.14344.13
Mirae Asset Large & Midcap Fund12169560.93301.71
Mirae Asset Large Cap Fund11570700.76286.87
Mirae Asset ELSS Tax Saver Fund7520230.91186.45
Mirae Asset Focused Fund6832091.83169.38
Aditya Birla Sun Life ELSS Tax Saver Fund3914180.6597.04
HDFC Large and Mid Cap Fund - Regular Plan3700900.6191.75

SRF Ltd ROCE Trend

SRF Ltd EPS Trend

SRF Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)72.9563.7540.57177.29111.66
Diluted EPS (Rs.)72.9563.7540.57177.29111.66
Cash EPS (Rs.)92.0480.89273.98240.63170.91
Book Value[Excl.RevalReserv]/Share (Rs.)347.20287.971137.81843.30705.86
Book Value[Incl.RevalReserv]/Share (Rs.)347.20287.971137.81843.30705.86
Revenue From Operations / Share (Rs.)499.94418.021393.971232.381213.61
PBDIT / Share (Rs.)121.17108.21365.03257.09226.49
PBIT / Share (Rs.)101.8390.82289.84190.66165.26
PBT / Share (Rs.)94.9486.93267.62156.36131.35
Net Profit / Share (Rs.)72.7063.51198.79174.20109.68
NP After MI And SOA / Share (Rs.)72.7063.51198.79174.20109.68
PBDIT Margin (%)24.2325.8826.1820.8618.66
PBIT Margin (%)20.3621.7220.7915.4713.61
PBT Margin (%)18.9920.7919.1912.6810.82
Net Profit Margin (%)14.5415.1914.2614.139.03
NP After MI And SOA Margin (%)14.5415.1914.2614.139.03
Return on Networth / Equity (%)20.9322.0517.4720.6515.53
Return on Capital Employeed (%)21.8823.8318.6614.7314.45
Return On Assets (%)11.5211.979.269.366.48
Long Term Debt / Equity (X)0.220.200.280.460.52
Total Debt / Equity (X)0.420.410.420.660.79
Asset Turnover Ratio (%)0.770.760.640.670.72
Current Ratio (X)1.171.181.100.870.99
Quick Ratio (X)0.710.700.690.510.60
Inventory Turnover Ratio (X)2.762.952.642.743.34
Dividend Payout Ratio (NP) (%)9.8711.2111.797.8910.75
Dividend Payout Ratio (CP) (%)7.798.808.555.716.89
Earning Retention Ratio (%)90.1388.7988.2192.1189.25
Cash Earning Retention Ratio (%)92.2191.2091.4594.2993.11
Interest Coverage Ratio (X)17.6027.7616.427.496.68
Interest Coverage Ratio (Post Tax) (X)11.5617.299.955.563.98
Enterprise Value (Cr.)75307.6182747.8235228.2819400.5117153.84
EV / Net Operating Revenue (X)5.066.664.192.692.42
EV / EBITDA (X)20.8925.7116.0212.9012.95
MarketCap / Net Operating Revenue (X)4.816.413.882.261.98
Retention Ratios (%)90.1288.7888.2092.1089.24
Price / BV (X)6.939.304.753.303.41
Price / Net Operating Revenue (X)4.816.413.882.261.98
EarningsYield0.030.020.030.060.04

SRF Ltd Profitability Ratios (%)

SRF Ltd Liquidity Ratios

SRF Ltd Liquidity Ratios (%)

SRF Ltd Interest Coverage Ratios (X)

SRF Ltd Valuation Ratios

Fair Value / Intrinsic Value of SRF Ltd

Fair Value: ₹4009.15

The stock is undervalued by 68.17% compared to the current price ₹2384

*Investments are subject to market risks

Strength and Weakness of SRF Ltd

StrengthWeakness
  1. The stock has a high average ROCE of 15.42%, which is a positive sign.
  2. The company has higher reserves (4,759.85 cr) compared to borrowings (3,079.85 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (6.85 cr) and profit (320.46 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 167.68 and average Dividend Yield of 18.39%.
  2. The stock has a high average Working Capital Days of 32.75, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 48.67, which may not be favorable.

Should I Buy SRF Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in SRF Ltd:
    1. Net Profit Margin: 14.54%
      • 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: 21.88% (Industry Average ROCE: 14.07%)
      • 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. Interest Coverage Ratio (Post Tax): 11.56
      • 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.
    4. Quick Ratio: 0.71
      • 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.
    5. ✗ Stock P/E: 47.3 (Industry average Stock P/E: 34.2)
      • 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.
    6. ✓ 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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