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SRF Ltd

NSE: SRF BSE: 503806

2961.90

(-0.83)%

Wed, 11 Feb 2026, 00:00 am

Analysis

dividend

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Pros

  • Dividends paid are thoroughly covered by earnings (11.4x coverage).
  • Dividends after 3 years are expected to be well covered by earnings (5.5x coverage).
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Cons

  • No dividend growth in 10 years.
  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • SRF's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
  • SRF's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

  • SRF's earnings growth is expected to exceed the low risk savings rate of 7.2%.
  • SRF's earnings are expected to increase by more than the low risk growth rate in 3 years time.
  • Performance (ROE) is expected to be above the current IN Chemicals industry average.
  • An improvement in SRF's performance (ROE) is expected over the next 3 years.
  • SRF's revenue growth is expected to exceed the India market average.
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Cons

  • Cash flow for SRF is expected to increase but not above the 50% threshold in 2 years time.
  • SRF's earnings are expected to grow by 14.4% yearly, however this is not considered high growth (20% yearly).
  • SRF's earnings growth is positive but not above the India market average.
  • SRF's earnings are expected to decrease over the next year.
  • SRF's net income is expected to increase but not above the 50% threshold in 2 years time.
  • SRF is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
  • SRF's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • SRF's revenue is expected to grow by 15.4% yearly, however this is not considered high growth (20% yearly).

health

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Pros

  • SRF is profitable, therefore cash runway is not a concern.
  • SRF is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (39.9%, greater than 20% of total debt).
  • SRF's cash and other short term assets cover its long term commitments.
  • The level of debt compared to net worth has been reduced over the past 5 years (106% vs 66.2% today).
  • Interest payments on debt are well covered by earnings (EBIT is 5.3x coverage).
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Cons

  • SRF's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Debt is not covered by short term assets, assets are 0.9x debt.
  • SRF's level of debt (66.2%) compared to net worth is high (greater than 40%).
  • High level of physical assets or inventory.

management

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Pros

  • The tenure for the SRF board of directors is about average.
  • Ashish's remuneration is about average for companies of similar size in India.
  • Ashish's compensation has been consistent with company performance over the past year, both up more than 20%.
  • More shares have been bought than sold by SRF individual insiders in the past 3 months.
  • The average tenure for the SRF management team is over 5 years, this suggests they are a seasoned and experienced team.
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Cons

    misc

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    Pros

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      Cons

      • SRF has significant price volatility in the past 3 months.

      past

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      Pros

      • SRF's 1-year earnings growth exceeds its 5-year average (42.6% vs 19.1%)
      • SRF's year on year earnings growth rate has been positive over the past 5 years.
      • SRF used its assets more efficiently than the IN Chemicals industry average last year based on Return on Assets.
      • SRF has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
      • SRF's earnings growth has exceeded the IN Chemicals industry average in the past year (42.6% vs 9.1%).
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      Cons

      • SRF has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

      value

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      Pros

      • SRF outperformed the Chemicals industry which returned 2.2% over the past year.
      • SRF outperformed the Market in India which returned -14.5% over the past year.
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      Cons

      • SRF's share price is below the future cash flow value, but not at a moderate discount (< 20%).
      • SRF's share price is below the future cash flow value, but not at a substantial discount (< 40%).
      • SRF is overvalued based on assets compared to the IN Chemicals industry average.
      • SRF is poor value based on expected growth next year.
      • SRF is overvalued based on earnings compared to the IN Chemicals industry average.
      • SRF is overvalued based on earnings compared to the India market.
      • NSEI:SRF is flat (0.5%) underperforming the Chemicals industry which returned 6.9% over the past month.
      • NSEI:SRF is flat (0.5%) underperforming the market in India which returned 8% over the past month.

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      Pocketful Fintech Capital Private Limited (CIN U65999DL2021PTC390548) | The SEBI Registration No. allotted to us is INZ000313732. NSE Member Code: 90326 | BSE Member Code: 6808 | MCX Member Code: 57120 DP | CDSL: 12099800