SRF Ltd.
NSE: SRFSRF Ltd.: A 30-second snapshot
SRF is a diversified specialty chemicals and technical textiles company trading at ₹2,696, down 6.65% over 12 months and 18.66% below its 52-week high. Trailing PE stands at 43.5 against 5-year earnings growth of 10.6%, while ROE of 13.76% and a quality score of 41 rank the company 4th out of 6 chemical sector peers. Q4 FY26 results showed 7% revenue growth and 11% net profit growth, with management guiding for 15–20% growth in the chemicals business.
P/E
43.5
Forward P/E
29.7
ROE
+13.8%
Debt / Equity
36.20
Profit Margin
+11.6%
Div. Yield
+0.4%
5Y ROE > 15%
1/5
5Y FCF > 0
3/5
Quality
53/100
News
8 headlines · 6 positive · 0 negative
SRF shares zoom 9% after co sees 15-20% growth in chemicals business - CNBC TV18
CNBC TV18
SRF posts strong Q4 FY26 with 7% revenue growth and sharp profit gains - Indian Chemical News
Indian Chemical News
SRF share price soars 9% on strong Q4, ₹2,300 crore Odisha investment plan - Business Standard
Business Standard
SRF: Strong revenue and profit growth driven by Chemicals and Films, with no final dividend declared - TradingView
TradingView
SRF Q4 Results: Net profit rises 11% to Rs 582 crore; to invest Rs 2,300 cr on new plant in Odisha - The Economic Times
The Economic Times
Recent context
- ·SRF shares rose approximately 9% in early May 2026 after Q4 FY26 results showed 11% net profit growth to ₹582 crore and 7% revenue growth, with the chemicals and films businesses as the primary contributors.
- ·Management announced a ₹2,300 crore investment plan for a new manufacturing plant in Odisha, representing a significant incremental capacity addition in the chemicals segment.
- ·No final dividend was declared for FY26 — a notable absence for a company with a dividend yield of 0.37% — while the board deferred a separate Indore BOPP project, adding near-term uncertainty to overall capex sequencing.
Strengths
- +5-year earnings CAGR of 10.6% and revenue CAGR of 7% demonstrate a track record of consistent top- and bottom-line compounding across market cycles.
- +Q4 FY26 net profit rose 11% YoY and management provided guidance for 15–20% growth in the chemicals segment, supported by a ₹2,300 crore greenfield plant investment in Odisha.
- +Forward PE of 29.7 represents a material compression from the trailing PE of 43.5, implying the market is pricing in earnings expansion in the near term if guidance is met.
- +Profit margin of 11.63% in a capital-intensive diversified chemicals and films business reflects an ability to retain earnings at above-single-digit levels across segments.
Weaknesses
- −ROE of 13.76% has exceeded 15% in only 1 of available historical years, and FCF was positive in only 3 of available years — indicating capital returns and free cash generation have been inconsistent through the business cycle.
- −Debt-to-equity of 36.2 is high in the context of a non-financial specialty chemicals company; debt trend is flat, with no material deleveraging visible in the persistence data.
- −Quality score of 41 and consistency score of 17 rank SRF 4th out of 6 sector peers, with Pidilite (66), Solar Industries (61), and UPL (44) all scoring higher on earnings durability and quality.
- −Price is 3.9% below the 200-day SMA (₹2,808) and 18.66% off the 52-week high; the stock has not reclaimed its longer-term trend average despite the recent 3-month recovery of 3.02%.
Open questions
- ?Does the 15–20% chemicals growth guidance assume sustained global specialty chemical demand, and what factors — agrochemical cycle, fluorochemicals pricing, or export competition — could cause variance from that guidance?
- ?How does SRF's D/E of 36.2 affect its ability to fund the ₹2,300 crore Odisha plant while managing existing debt service, particularly if FCF does not improve materially from the 3-of-available-years positive record?
- ?Is the ROE trajectory — currently 13.76%, above 15% in only 1 historical year — more likely to reflect cyclical margin compression in specialty chemicals, or structural capital allocation choices in films and textiles?
- ?What does the gap between the 200-day SMA (₹2,808) and current price (₹2,696) imply about how the market is weighing the Q4 earnings beat against the broader 12-month price decline of 6.65%?
Peer comparison: Chemicals
Ranks 4 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| SRF | SRF Ltd.You're viewing | 43.5 | +13.8% | 41 |
| Industry avg | across 5 peers | 49.1 | +17.7% | 45 |
| PIDILITIND | Pidilite Industries Ltd. | 60.7 | +23.5% | 66 |
| SOLARINDS | Solar Industries India Ltd. | 97.8 | +31.3% | 61 |
| UPL | UPL Ltd. | 28.9 | +5.6% | 44 |
| COROMANDEL | Coromandel International Ltd. | 27.0 | +15.6% | 30 |
| PIIND | PI Industries Ltd. | 31.0 | +12.3% | 23 |
Technical state
Current price
₹2,696.20
SMA 50
₹2,569.63
SMA 200
₹2,808.16
RSI (14)
54.8 (neutral)
From 52w high
-18.7%
1Y return
-6.7%
3M return
+3.0%
50-DMA
Above
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- mediumDebt-to-equity of 36.2 is elevated for the specialty chemicals sector; FCF was positive in only 3 of available years and ROE exceeded 15% in just 1 of available historical years, signalling inconsistent capital efficiency and cash generation through the cycle.
- mediumPrice (₹2,696) sits 3.9% below the 200-day SMA (₹2,808) and is down 6.65% over 12 months; the stock has not reclaimed its longer-term trend average despite a 3-month gain of 3.02% and RSI of 54.84 (neutral).
- mediumQuality score of 41 ranks SRF 4th out of 6 in the Chemicals sector — behind Pidilite (66), Solar Industries (61), and UPL (44); consistency score of 17 is below-median for the peer group.
- lowTrailing PE of 43.5 against 5-year earnings CAGR of 10.6% and 5-year revenue CAGR of 7% implies a material earnings re-acceleration is priced in; forward PE compresses to 29.7, contingent on near-term delivery.
- lowPeer priceChange1Y is null for all 5 sector peers, making relative 1-year price performance ranking unavailable; this limits the completeness of sector price comparison.
Cross-section contradictions
- News sentiment reads positive (6 positive, 0 negative out of 8 items) — driven by Q4 FY26 net profit growth of 11%, management guidance of 15–20% chemicals business growth, and a ₹2,300 crore Odisha capex plan — yet the stock is down 6.65% over 12 months, indicating the market has not yet repriced these developments into sustained appreciation.
- RSI of 54.84 (neutral) and price above the 50-day SMA (₹2,570) suggest near-term positive momentum, while price remaining 3.9% below the 200-day SMA (₹2,808) and an 18.66% drawdown from the 52-week high indicate the longer-term trend has not been reconquered.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 1 Jun 2026 · rotates through NIFTY 500 every ~5 days