SRF - Fundamental Analysis: Financial Health & Valuation
Last Updated Time : 20 Dec 25, 11:16 pm
Back to Fundamental ListFundamental Rating: 3.6
| Stock Code | SRF | Market Cap | 91,598 Cr. | Current Price | 3,090 ₹ | High / Low | 3,325 ₹ |
| Stock P/E | 59.0 | Book Value | 406 ₹ | Dividend Yield | 0.24 % | ROCE | 13.7 % |
| ROE | 11.5 % | Face Value | 10.0 ₹ | DMA 50 | 2,934 ₹ | DMA 200 | 2,898 ₹ |
| Chg in FII Hold | -0.26 % | Chg in DII Hold | 0.68 % | PAT Qtr | 363 Cr. | PAT Prev Qtr | 397 Cr. |
| RSI | 64.1 | MACD | 32.2 | Volume | 5,81,365 | Avg Vol 1Wk | 4,98,797 |
| Low price | 2,197 ₹ | High price | 3,325 ₹ | PEG Ratio | -10.6 | Debt to equity | 0.25 |
| 52w Index | 79.2 % | Qtr Profit Var | 61.1 % | EPS | 52.4 ₹ | Industry PE | 20.0 |
📊 Financials: SRF has a market cap of ₹91,598 Cr. Current price is ₹3,090 with a 52-week high/low of ₹3,325/₹2,197. PAT this quarter is ₹363 Cr vs ₹397 Cr in the previous quarter, showing slight decline. ROCE at 13.7% and ROE at 11.5% indicate moderate efficiency. Debt-to-equity ratio of 0.25 reflects low leverage.
💹 Valuation: Stock P/E is 59.0, significantly higher than industry PE of 20.0, suggesting overvaluation. Book value is ₹406, giving a P/B ratio of ~7.6. PEG ratio is -10.6, indicating weak earnings growth relative to valuation. EPS stands at ₹52.4.
🏭 Business Model: SRF operates in chemicals, packaging films, and technical textiles. Diversified business segments provide resilience, but chemicals remain cyclical. Competitive advantage lies in specialty chemicals and global client base.
📈 Entry Zone: Technically, DMA 50 (₹2,934) and DMA 200 (₹2,898) suggest support zones. Entry is favorable near ₹2,900–₹2,950 if price corrects. Current RSI at 64.1 indicates mildly overbought conditions.
🕰️ Long-Term Holding: Despite high valuation, strong fundamentals, low debt, and diversified business model support long-term compounding. Investors should accumulate on dips closer to intrinsic value zones.
Positive
- ✅ Strong ROCE (13.7%) and ROE (11.5%)
- ✅ Diversified business segments
- ✅ Low debt-to-equity ratio (0.25)
- ✅ Consistent dividend payout
Limitation
- ⚠️ High P/E (59.0) vs industry PE (20.0)
- ⚠️ PEG ratio negative (-10.6)
- ⚠️ Quarterly PAT decline (397 Cr → 363 Cr)
Company Negative News
- 📉 FII holding reduced (-0.26%)
- 📉 Profitability under pressure in recent quarter
Company Positive News
- 📈 DII holding increased (+0.68%)
- 📈 Strong demand in specialty chemicals
Industry
- 🏭 Chemicals industry cyclical but supported by global demand
- 🏭 Industry PE at 20.0 highlights SRF’s premium valuation
Conclusion
🔎 SRF is fundamentally strong with low debt and diversified operations, but valuations are stretched. Best entry zone lies near ₹2,900–₹2,950. Long-term investors can hold for compounding, while short-term traders should wait for correction before entry.
Would you like me to also prepare a peer benchmarking overlay comparing SRF with other specialty chemical companies, or a sector scan to identify undervalued peers?
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