DINESH

SRF Ltd

Latest CMP 2,606
Today's Change ▼ -0.10%
52-Week High / Low 3,178 | 2,387
Price Date: 14-Aug-2026
Recommendation Buy
Target Price 3,346
Expected Upside 13.3%
Forecast Horizon 2 Years
Historical CAGR 26.0%
1,000 Invested 15-Aug-2006
Today's Value 101,038
Investment Period 20 Years

Stock Snapshot

Post Results Return
-5.2%
Mild Negative Re-rating
1-Year Target Price
3,242
2-Year Target Price
3,346
52-Week High / Low
3,178 / 2,387
20-Day Return
-9.1%
Market Cap (Cr.)
77,242
Current PE
43.4
P/BV Ratio
5.5
Dividend Yield
0.3%
Industry PE
41.1

Price Performance

Basis of our Recommendation

SRF Ltd's management has expressed cautious optimism regarding future growth, driven by strategic capacity expansions in high-value films and fluoropolymers. Despite a strong Q1FY27 performance, management anticipates normalization in subsequent quarters, particularly in the Performance Films segment, which has benefited from geopolitical supply disruptions. The Chemicals business remains robust, with a projected revenue growth of 15-20% for FY27, supported by high utilization rates and strategic investments, including a new BOPET thick film line. However, competitive pressures, particularly from Chinese players, pose challenges to pricing power in the Specialty Chemicals sector. Vista's financial outlook reflects an expectation of accelerating revenue growth and improving margins, aligning with management's guidance. The company's stable balance sheet and fair valuation further support this outlook, with a target price of approximately INR 3,171. Key opportunities include the commissioning of new plants and capacity ramp-ups, while watchpoints include geopolitical tensions and pricing pressures in the agrochemical sector. Overall, SRF is well-positioned for long-term growth, although it must navigate short-term challenges

👍 Why We Like This Stock

  • Strategic capacity expansions in high-value films and fluoropolymers are expected to drive revenue growth
  • Management projects a 15-20% revenue growth for the Chemicals business in FY27, supported by strong demand
  • The commissioning of new plants and a focus on high-value products position SRF for long-term profitability

Things To Watch Out For

  • Competitive pressures from Chinese players may limit pricing power in the Specialty Chemicals sector
  • Normalization of demand in the Performance Films segment could impact short-term revenue growth
  • Geopolitical tensions and supply chain disruptions pose risks to operational stability and margin expansion

Key Parameters

Balance Sheet Strength
Stable Financial Structure
Market Share
Stable
Industry Outlook
Weakening
Analyst View
Buy
Dividend History
Consistent
FII Holdings
Reducing

Financial Snapshot

Actuals Forecast
FY24 FY25 FY26 FY27 FY28
Revenue (Cr.) 13,139 14,693 15,787 18,546 20,673
Profit Before Tax (Cr.) 1,687 1,702 937 3,197 3,285
PBT Margin 12.8% 11.6% 593.5% 17.2% 15.9%
Net Profit (Cr.) 1,424 1,247 1,804 2,186 2,246
Earnings Per Share 48.0 42.1 60.9 73.7 75.8

Analyst Recommendations

Broker Recommendation Target Price Date
BPWealth ► Add nan 07-May-2026
Citigroup ▼ Sell 2,675 07-May-2026
Elara Capital ▲ Buy 3,422 27-Jul-2026
HSBC ▲ Buy 3,300 24-Jul-2026
IDBI Capital ► Hold 3,604 24-Jul-2026
Jeffries ► Hold 2,540 24-Jul-2026
Kotak Securities ▼ Sell 2,260 16-Jun-2026
Moneycontrol ▲ Overweight 3,230 24-Jul-2026
Morgan Stanley ▼ Underweight 2,209 06-May-2026
Motilal Oswal ▲ Buy 3,200 24-Jul-2026
Prabhudas Liladhar ▼ Reduce 2,482 24-Jul-2026
UBS ▼ Reduce 2,300 26-Apr-2026
Consensus Recommendation ▲ Buy
Consensus Target 3,033
Coverage 12 Analysts
Analysts' Viewpoint
SRF's growth is fueled by investments in BOPET thick film lines and fluoropolymers, enhancing production capabilities and competitive positioning. The Chemicals segment benefits from strong refrigerant demand and strategic capex, while the Specialty Chemicals segment faces pricing pressures from Chinese competition. Future catalysts include the commissioning of new plants and regulatory developments in refrigerants, which are expected to bolster long-term growth despite potential margin normalization and geopolitical uncertainties.

Company Overview

Show Company Profile

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. The company offers polyester and nylon tyre cord, belting, coated, and laminated fabrics; and polyester industrial yarns. It also provides fluorochemicals, such as refrigerant gases, industrial and specialty chemicals, fluorochemicals, and allied products, as well as research and development services. In addition, the company offers polyester films and polypropylene films; organic and inorganic intermediates for use in material sciences, surface chemistry, and agrochemical and pharmaceutical; and fluoropolymers. Further, it engages in the acquisition and renting of real estate; manufacture, distribution, and trade of performance films; and manufacture of aluminum foil. The company operates in India, Germany, the United States, South Africa, the United Kingdom, Italy, Indonesia, the United Arab Emirates, South Korea, Thailand, Hungary, Switzerland, Belgium, and internationally. The company was formerly known as Shri Ram Fibres and changed its name to SRF Limited in 1990. SRF Limited was incorporated in 1970 and is headquartered in Gurugram, India. SRF Limited operates as a subsidiary of KAMA Holdings Limited.