SRF Ltd
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
SRF Limited's recent management commentary highlights a strategic pivot towards high-margin specialty chemicals and technical textiles, which is expected to drive revenue growth and margin expansion. The Chemicals business is projected to grow by 15-20%, supported by strong demand for refrigerant gases and ongoing capacity expansions. However, challenges remain, particularly from competitive pressures in the agrochemical sector and geopolitical tensions affecting supply chains. Vista's financial outlook reflects an anticipated acceleration in revenue growth beyond historical levels, with improving margins and a fair valuation aligned with intrinsic value. The company's focus on operational efficiency and innovation positions it well for sustainable growth, despite potential normalization in demand for certain products. Over the next 12-24 months, key opportunities include the commissioning of new facilities and a recovery in specialty chemicals, while watchpoints include execution risks related to project timelines and ongoing pricing pressures from imports. Overall, SRF's disciplined approach and strategic investments suggest a positive trajectory, with an expected upside of approximately 24% over the next year
Why We Like This Stock
- Management projects a 15-20% growth in the Chemicals business, driven by strong demand for refrigerant gases
- Strategic investments in high-margin products and capacity expansions are expected to enhance competitive positioning
- The company's focus on operational efficiency and innovation supports long-term margin improvement
Things To Watch Out For
- Competitive pressures in the agrochemical sector may hinder growth and profitability
- Geopolitical tensions could disrupt supply chains and impact operational stability
- Normalization of demand for certain products may pose short-term challenges
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 13,139 | 14,693 | 15,787 | 18,546 | 20,678 |
| Profit Before Tax (Cr.) | 1,687 | 1,702 | 937 | 3,196 | 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 |
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.