SRF Ltd
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →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
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 |
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.