SRF Ltd.
Chemicals · NSE
52-week range
₹2,355 – ₹3,315
From 52w high
-16.1%
RSI (14)
68.7
vs SMA 50 / 200
↑ 50 · ↓ 200
SRF Limited, a diversified specialty chemicals company, trades at ₹2,777 — 2.2% below its 200-day SMA of ₹2,836 — after declining 8.83% over the past 12 months. Q4FY26 net profit rose 11% to ₹582 crore and the company committed ₹2,285 crore toward fourth-generation refrigerant facilities, though it deferred a ₹490 crore Indore BOPP project. Forward PE of 30.3 versus trailing PE of 44.8 implies the market is pricing in a meaningful acceleration in earnings over the next 12 months.
- ✓Q4FY26 net profit growth of 11% YoY to ₹582 crore, with 5-year earnings CAGR of 10.6%, demonstrates a multi-year upward profit trajectory.
- ✓₹2,285 crore capex commitment for fourth-generation refrigerant facilities signals a large, defined growth investment addressing a structurally shifting product category under HFC phase-down regulations.
- ✓FCF was positive in 3 of available fiscal years, indicating the business has periodically generated cash above its investment needs despite being in an asset-heavy, capex-intensive sector.
- ✓Forward PE of 30.3 represents a 32% compression from the current trailing PE of 44.8, suggesting consensus earnings estimates embed a substantial improvement in per-share profitability.
- ✗ROE of 13.76% has exceeded 15% in only 1 of the available historical years, and the consistency score of 17 indicates capital returns have been structurally below what the sector leaders sustain; Pidilite Industries, the top-ranked peer, carries a ROE of 23.52%.
- ✗Quality score of 41 ranks SRF 3rd of 6 in the Chemicals peer set, with Pidilite (66) and Solar Industries (57) both materially ahead — reflecting weaker composite fundamentals relative to sector leaders.
- ✗The stock has traded below its 200-day SMA and posted a negative 12-month return (-8.83%) even as near-term momentum (RSI 68.25) has recovered, a combination that reflects an unresolved longer-term price downtrend.
- ✗The board deferred the ₹490 crore Indore BOPP project, indicating capital allocation prioritisation amid multiple large concurrent investments — the refrigerant capex alone at ₹2,285 crore is large relative to the company's trailing annual profit of approximately ₹2,000 crore.
- ·Q4FY26 results (reported May 5, 2026) showed net profit of ₹582 crore (+11% YoY), with management committing to a new ₹2,300 crore plant in Odisha, reinforcing the refrigerant-capacity expansion theme.
- ·The revision of refrigerant capex to ₹2,285 crore for fourth-generation facilities positions SRF to serve the transition away from older HFC refrigerants — timing, execution, and regulatory pace remain variables for when this capacity generates returns.
- ·The deferral of the Indore BOPP project signals that management is actively sequencing capital deployment, though it also reflects the competing demands on the balance sheet from the refrigerant programme.
- ?Does the refrigerant capex cycle — projected at ₹2,285 crore over coming years — translate into a step-change in ROCE, or does the asset base grow faster than earnings, keeping ROE structurally below the sector leaders?
- ?How has SRF's debt profile evolved alongside this capex commitment, and does the current D/E trajectory support the company's ability to fund the Odisha plant without material equity dilution?
- ?The forward PE of 30.3 implies significant earnings growth relative to trailing; what assumptions about refrigerant pricing, volume ramp, and chemicals segment margins underpin the analyst consensus earnings estimates?
- ?Over the past five years, ROE exceeded 15% in only 1 year — is this a reflection of deliberate reinvestment during a capital-intensive capex phase, or does it indicate a structural ceiling on return generation for this business model?
PE
44.8
Forward PE
30.3
ROE
+13.8%
Profit margin
+11.6%
D/E
36.20
Dividend yield
+0.4%
Quality score
41/100
ROE 5y above 15%
1/5 yrs
FCF 5y positive
3/5 yrs
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.Analysis generated 11 May 2026.