Srf Limited (SRF) AI Stock Analysis

• Market Cap: ₹759.71B
• Dividend Yield: 0.24%
• Average Volume (3M): 7.10K
• Price to Earnings (P/E): 42.7
• Beta (1Y): 0.76
• 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: ₹3,276.33
• Price Target Upside: 5.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 63.25
• Revenue Forecast (FY): ₹158.44B

• Rating: 61 Neutral
• Price Target: ₹2,704.00 ▼(-12.53% 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

Consistent Revenue Growth

SRF has delivered durable top-line growth (11% revenue growth noted and a significant increase year-over-year). Sustained revenue expansion supports capacity utilization and reinvestment, underpinning long-term scale advantages across its chemical and materials segments.

Improving Profitability and Margins

Marked improvement in gross margins and healthy net margins reflect lasting operational gains and pricing/portfolio enhancements. Better margins increase cash generation potential and resilience through cycles, supporting reinvestment and sustained shareholder returns over months.

Diversified, Multi‑segment Business Model

SRF's exposure across fluorochemicals, specialty chemicals, packaging films and technical textiles provides diversified end-market exposure. This multi-segment model reduces reliance on any single cyclical market and supports stable revenue mix and cross-segment upsell over time.

Negative Factors

Rising Leverage Trend

The balance sheet is otherwise solid but an increasing total debt trend raises leverage risk. Elevated leverage can constrain flexibility for capex or M&A and increases vulnerability to higher rates or earnings volatility over the next several months if deleveraging isn't evident.

Variable Free Cash Flow

Operating cash conversion is strong but free cash flow variability driven by capex cycles reduces predictability of discretionary cash. This can limit ability to consistently pay down debt, fund buybacks, or increase dividends in the medium term without sustained cash generation.

Exposure to Raw‑material Spreads and Cyclicality

SRF's margin and earnings depend on raw-material spreads, volumes and utilization. Such exposure to commodity-linked input prices and cyclical end markets (e.g., packaging, auto tires, refrigerants) creates structural earnings volatility risk over coming months.

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 generates revenue through multiple streams, primarily by manufacturing and selling specialty chemicals, technical textiles, and packaging films. The company's revenue model is diversified; it earns income from the sale of high-performance materials used in various industries, such as automotive, pharmaceuticals, and food packaging. Key revenue streams include the production of refrigerant gases, which are in demand due to increasing regulatory requirements for environmentally friendly products, and the sale of engineering plastics, which serve industries like consumer goods and electronics. Additionally, SRF's strategic partnerships with global corporations enhance its market reach and product offerings, contributing significantly to its overall earnings.

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	150.48B	146.93B	131.39B	148.70B	124.34B	84.00B
Gross Profit	68.89B	66.40B	61.01B	71.93B	61.13B	41.76B
EBITDA	29.77B	28.11B	26.29B	35.01B	30.86B	21.24B
Net Income	14.31B	12.51B	13.36B	21.62B	18.89B	11.98B
Balance Sheet
Total Assets	0.00	215.57B	204.82B	187.55B	157.77B	129.29B
Cash, Cash Equivalents and Short-Term Investments	11.22B	10.58B	8.14B	11.04B	7.87B	6.95B
Total Debt	0.00	47.26B	50.31B	44.78B	36.55B	34.69B
Total Liabilities	-126.26B	89.31B	90.03B	84.27B	72.11B	60.73B
Stockholders Equity	126.26B	126.26B	114.79B	103.27B	85.65B	68.56B
Cash Flow
Free Cash Flow	0.00	12.56B	-1.23B	359.60M	2.74B	5.57B
Operating Cash Flow	0.00	24.87B	20.94B	29.02B	21.06B	17.72B
Investing Cash Flow	0.00	-14.84B	-22.27B	-29.61B	-15.88B	-15.00B
Financing Cash Flow	0.00	-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: Positive
• RSI: Positive
• STOCH: Positive

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 2786.19, above the 50-day MA of 2899.81, and above the 200-day MA of 2959.85, indicating a bearish trend. The MACD of -84.10 indicates Positive momentum. The RSI at 29.19 is Positive, neither overbought nor oversold. The STOCH value of 13.32 is Positive, 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	₹537.78B	30.62	―	0.77%	8.14%	―
NAVINFLUOR	64 Neutral	₹320.61B	57.92	―	0.23%	30.05%	70.18%
DEEPAKFERT	62 Neutral	₹125.58B	14.35	―	0.80%	21.68%	45.18%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SRF	61 Neutral	₹759.71B	42.70	―	0.24%	12.97%	43.25%
FLUOROCHEM	60 Neutral	₹382.64B	58.24	―	0.08%	8.36%	65.83%
DEEPAKNTR	52 Neutral	₹215.63B	40.45	―	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.