Srf Limited (SRF) AI Stock Analysis

• Market Cap: ₹727.57B
• Dividend Yield: 0.24%
• Average Volume (3M): 7.10K
• Price to Earnings (P/E): 52.7
• Beta (1Y): 0.73
• Revenue Growth: 12.97%
• EPS Growth: 43.25%
• Country: IN
• Employees: 7,372
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 14.60
• Shares Outstanding: 296,424,840
• 10 Day Avg. Volume: 7,851
• 30 Day Avg. Volume: 7,102
• PEG Ratio: -10.75
• Price to Book (P/B): 6.76
• Price to Sales (P/S): 5.81
• P/FCF Ratio: 67.96
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹3,189.50
• Price Target Upside: 3.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 63.28
• Revenue Forecast (FY): ₹158.57B

• Rating: 61 Neutral
• Price Target: ₹2,589.00 ▼(-16.25% Downside)
• Action: Reiterated Date: 11/01/25
• Date: Action: Reiterated 11/01/25

SRF Limited's overall stock score is primarily driven by its strong financial performance, which is offset by bearish technical indicators and a high valuation. The company's robust growth and profitability are positive, but the stock's current technical weakness and high P/E ratio present risks.

Positive Factors

Revenue & Margin Momentum

SRF's reported strong revenue growth and marked improvement in gross profit margins reflect durable demand and better operational efficiency. Sustained revenue expansion combined with margin improvement supports reinvestment, higher cash generation potential and long-term profitability resilience.

Diversified Business Model

SRF's multi-segment footprint across fluorochemicals, specialty chemicals, packaging films and technical textiles reduces single-market dependence. This structural diversification allows cross-cycle revenue stability, customer mix optimization and strategic shift toward higher-value specialty products over time.

Balance Sheet & Cash Conversion

A strong equity base and efficient conversion of earnings to operating cash provide SRF with financial flexibility for capex, working capital and selective investments. Manageable capital structure supports resilience through cycles and enables funding of specialty-capacity expansion without immediate reliance on costly external financing.

Negative Factors

Rising Leverage

The documented increase in total debt and rising leverage reduces financial headroom and raises interest burden risk over time. If cyclical downturns hit revenues or margins, higher leverage can constrain strategic choices, slow deleveraging and limit capacity to invest in higher-margin specialty segments.

Volatile Free Cash Flow

Fluctuating free cash flow driven by variable capex cycles creates uncertainty in funding growth, dividends and debt paydown. Persistent FCF variability can force trade-offs between maintenance capex and expansion, delaying capacity projects or pushing reliance on higher-cost external funding in tighter periods.

Commodity & Utilization Sensitivity

SRF's margins and earnings are structurally exposed to raw material price spreads and plant utilization. This makes profitability cyclical and sensitive to commodity swings and demand downturns; sustaining margins requires ongoing mix shifts to specialty products and disciplined capacity management.

Srf Limited Business Overview & Revenue Model

Company Description

SRF Limited manufactures, purchases, and sells technical textiles, chemicals, packaging films, and other polymers. It operates through Technical Textiles Business, Chemicals Business, Packaging Film Business, and Others segments. The company offers nylon tyre cord, belting, coated, and laminated fabrics; and industrial and polyester industrial yarns. It also provides fluorochemicals, such as refrigerants for room air-conditioner, automobile air-conditioner, refrigerator, and chillers under the Floron brand, as well as propellants for the pharmaceutical sector under the Dymel brand; and industrial chemicals used in various applications comprising solvents in pharma, feedstock for pharmaceutical and agrochemicals, metal de-greasing, etching of stainless steel and glass, and dry- foam blowing cleaning. In addition, it provides advanced intermediates for the agrochemical and pharmaceutical industries. Further, the company provides bi-axially oriented polyethylene terephthalate films under PETLAR brand and bi-axially oriented polypropylene films under OPLAR brand. It serves in India, Germany, the United States, Belgium, Switzerland, and internationally. The company was formerly known as Shri Ram Fibres and changed its name to SRF Limited in 1990. The company was incorporated in 1970 and is headquartered in Gurugram, India. SRF Limited is a subsidiary of KAMA Holdings Limited.

How the Company Makes Money

SRF makes money primarily by manufacturing and selling products across multiple business segments, generating revenue from (1) Fluorochemicals: sales of refrigerants and other fluorine-based chemicals and intermediates supplied to industrial and downstream manufacturers; (2) Specialty Chemicals: sale of specialty chemical intermediates and products, including custom or contract manufacturing for customers that use these inputs in sectors such as agrochemicals and pharmaceuticals; (3) Packaging Films: sale of packaging and industrial films (e.g., BOPET/BOPP-type flexible packaging film products) to converters and brand/packaging supply chains, typically with revenues linked to volumes sold and film pricing; (4) Technical Textiles: sale of industrial textile materials (such as tire cord fabrics and other reinforcement/industrial textiles) to tire and industrial product manufacturers; and (5) Other/Coated & Laminated Fabrics: sale of coated fabrics and related materials for industrial applications. Across these streams, earnings are driven by a combination of product volumes, pricing and spreads relative to key raw materials, capacity utilization at manufacturing plants, and the mix shift toward higher-value specialty/custom products where applicable. Information on specific named partnerships or customer contracts is not available in this response and is therefore null.

Srf Limited Financial Statement Overview

Summary

SRF Limited's financial performance is strong, with robust revenue growth and improved profit margins. The balance sheet is stable, though rising leverage is a concern. Cash flow is positive but shows some fluctuations, indicating potential challenges in maintaining consistent cash generation.

Income Statement

SRF Limited shows strong revenue growth with a significant increase from 2024 to 2025. Gross profit margin has improved markedly over the years, indicating enhanced operational efficiency. Net profit margin remains healthy, though slight fluctuations in net income suggest some volatility. Overall, the company's income statement reflects robust profitability and growth.

Balance Sheet

The company's balance sheet is solid, with a strong equity base and a manageable debt-to-equity ratio. The equity ratio is favorable, reflecting a stable capital structure. However, the increase in total debt over the years suggests a rising leverage, which could be a potential risk if not managed properly.

Cash Flow

SRF Limited demonstrates positive cash flow from operations, though free cash flow has seen some fluctuations due to capital expenditures. The operating cash flow to net income ratio is strong, indicating efficient conversion of earnings to cash flow. However, varying free cash flow to net income ratios suggest potential challenges in maintaining consistent cash generation.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	152.63B	146.93B	131.39B	148.70B	124.34B	84.00B
Gross Profit	66.84B	66.40B	61.01B	71.93B	61.13B	41.76B
EBITDA	32.20B	28.11B	26.29B	35.01B	30.86B	21.24B
Net Income	16.18B	12.51B	13.36B	21.62B	18.89B	11.98B
Balance Sheet
Total Assets	222.61B	215.57B	204.82B	187.55B	157.77B	129.29B
Cash, Cash Equivalents and Short-Term Investments	6.35B	10.58B	8.14B	11.04B	7.87B	6.95B
Total Debt	46.05B	47.26B	50.31B	44.78B	36.55B	34.69B
Total Liabilities	89.98B	89.31B	90.03B	84.27B	72.11B	60.73B
Stockholders Equity	132.64B	126.26B	114.79B	103.27B	85.65B	68.56B
Cash Flow
Free Cash Flow	1.82B	12.56B	-1.23B	359.60M	2.74B	5.57B
Operating Cash Flow	10.61B	24.87B	20.94B	29.02B	21.06B	17.72B
Investing Cash Flow	-5.57B	-14.84B	-22.27B	-29.61B	-15.88B	-15.00B
Financing Cash Flow	-6.49B	-10.71B	-717.00M	2.20B	-2.07B	-2.51B

Srf Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3091.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SRF, the sentiment is Negative. The current price of 3091.2 is above the 20-day moving average (MA) of 2559.45, above the 50-day MA of 2750.35, and above the 200-day MA of 2934.49, indicating a bearish trend. The MACD of -77.59 indicates Negative momentum. The RSI at 39.30 is Neutral, neither overbought nor oversold. The STOCH value of 34.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SRF.

Srf Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UPL	68 Neutral	₹527.56B	42.42	―	0.77%	8.14%	―
DEEPAKFERT	64 Neutral	₹114.88B	28.71	―	0.80%	21.68%	45.18%
NAVINFLUOR	64 Neutral	₹313.87B	40.91	―	0.23%	30.05%	70.18%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SRF	61 Neutral	₹727.57B	52.65	―	0.24%	12.97%	43.25%
FLUOROCHEM	60 Neutral	₹349.78B	98.66	―	0.08%	8.36%	65.83%
DEEPAKNTR	52 Neutral	₹189.70B	59.14	―	0.44%	-7.50%	-37.67%

Srf Limited Corporate Events

SRF Limited Publishes Q3 and Nine-Month FY2025 Unaudited Results in Newspapers

SRF Limited has notified stock exchanges that it has published its unaudited financial results for the quarter and nine months ended 31 December 2025 in the English daily Business Standard and the Hindi daily Jansatta, in line with regulatory disclosure requirements. The company has also made these results available on its website, reinforcing its compliance with SEBI’s listing regulations and ensuring that investors and other stakeholders have public access to its latest financial performance data.