SRF Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

SRF Ltd trades at ₹2,875, in a downtrend and 20 weeks into that stage. That is +4.6% against its own 200-day average. It sits at 59% of a 52-week range of ₹2,455 to ₹3,169. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 3 straight weeks.

Today the stock is in a downtrend — week 20 of stage 4. At ₹2,875 it trades +4.6% versus its 200-day average and sits at 59% of its 52-week range (₹2,455–₹3,169).

Against the market, two honest reads. Cumulative: over the last 10.3 years the stock moved +1,119% while the NIFTY 500 moved +274% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 3 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

→ The trend is one thing; the bill is another. Are you paying up for it? Next: the P/E sits at the 61st percentile of its own range.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

SRF Ltd trades at 35.2× P/E, mid-range by its own standards (61st percentile). Its long-run median P/E is 31.3×, measured across 10.4 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 35.2× is mid-range by its own standards (61st percentile), against a long-run median of 31.3× measured over 10.4 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Why the multiple sits where it does: over the past year annual EPS moved +46.7% against a −9.8% price move — earnings outran the price, pushing the multiple DOWN its own range.

The price move, decomposed: over 5y, of the +13.1%/yr price move, ~+13.1%/yr came from earnings growth and ~+0.0 pp from the multiple (roughly flat); over 10y, of the +26.8%/yr price move, ~+16.7%/yr came from earnings growth and ~+10.1 pp from the multiple (expanding). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is unremarkable against its own past, so the story rests on the earnings line underneath it, not the multiple.

→ Cheap or dear rides on the earnings. Are they actually growing? Next: the fundamental stage — where the business sits in its arc, and how growth has compounded.

Stage: Improving Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

SRF Ltd reads as improving on its fundamental arc. Improving — profit growth bottomed 8 quarters ago at −35.8% and has held its recovery at +51.2%, ROCE holding at 15.0%. The read is built from 12 quarters across 4 curves, on partial evidence.

Why it matters: a sustained climb off the trough is the setup this page is built to catch — the question moves to what you pay for it.

Return readings here are annual, not quarterly — read as level and direction only; they can confirm the growth curves but never drive the stage on their own.

A partial read: at least one curve is short, or the returns curve is not the computed quarterly series — hold the stage word a little more loosely.

→ The stage names the trajectory. Next: the revenue line that produces it, quarter by quarter.

4-Factor Sector Score

65.4/100 — rank 2 of 4 in Chemicals - Flourine · 88% evidence confidence

SRF Ltd scores 65.4 out of 100 against the 4 companies it is compared with in Chemicals - Flourine, ranking 2. Acceleration candidate, not a confirmed leader: earnings are strong but sector-relative strength is -11.2% and the one-year return is -9.8%. Do not upgrade until sector-relative strength is above zero and another reported period confirms growth.

The four contributions add to the total exactly: 30.3 + 15.8 + 13.1 + 6.2 = 65.4. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

SRF Ltd reported ₹5,033 Cr of revenue in the Jun 26 quarter, +31.8% year on year. That is the 9th straight quarter of year-on-year growth. Over 10 years it has compounded at 13.1% a year. The last full year, FY26, came in at ₹15,787 Cr. The last four reported quarters add to ₹17,001 Cr.

SRF Ltd reported ₹5,033 Cr of revenue in the Jun 26 quarter, +31.8% year on year. That is the 9th straight quarter of year-on-year growth. Over 10 years it has compounded at 13.1% a year. The last full year, FY26, came in at ₹15,787 Cr. The last four reported quarters add to ₹17,001 Cr.

FY26 revenue came in at ₹15,787 Cr (+7.4% on the year), capping 10 years at 13.1% compound. The latest quarter (Jun 26) printed ₹5,033 Cr, +31.8% year on year — the 9th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +12.9% growth against the decade's 13.1% — the current year is running in line with its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +13.0% over the last 4 quarters against +13.2%/yr over the last 8 — stabilising; TTM profit +51.2% vs +32.7%/yr — accelerating.

→ Revenue grew — did margins hold as it scaled? Next: 25.0% this quarter (+3.0 pp YoY).

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

SRF Ltd's operating margin is 25.0% in the Jun 26 quarter, +3.0 percentage points against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 13.0% to 25.0%. The current quarter sits inside that band.

SRF Ltd's operating margin is 25.0% in the Jun 26 quarter, +3.0 percentage points against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 13.0% to 25.0%. The current quarter sits inside that band.

The latest quarter's operating margin is 25.0%, +3.0 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 13.0%–25.0%.

Why the margin moved: operating margin went +2.8 pp year on year while gross margin went +2.7 pp — the gain came mostly from the gross line: input costs and pricing.

→ Margins held — did that reach the bottom line? Next: profit +75.7% in the latest quarter.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

SRF Ltd earned ₹759 Cr of net profit in the Jun 26 quarter, +75.7% year on year. It is the 7th consecutive quarter of growth. Full-year FY26 profit was ₹1,835 Cr. The 10-year compound rate is 15.6%. That is 15.1% of the quarter's revenue. The same quarter a year earlier earned ₹432 Cr.

SRF Ltd earned ₹759 Cr of net profit in the Jun 26 quarter, +75.7% year on year. It is the 7th consecutive quarter of growth. Full-year FY26 profit was ₹1,835 Cr. The 10-year compound rate is 15.6%. That is 15.1% of the quarter's revenue. The same quarter a year earlier earned ₹432 Cr.

Jun 26 profit was ₹759 Cr, +75.7% year on year — the 7th consecutive quarter of growth. On the full year, FY26 printed ₹1,835 Cr (+46.7%), and the 10-year compound rate is 15.6%.

Why profit moved: revenue contributed +31.8% and the margin +3.0 pp — the quarter was margin-led: most of the profit growth came from keeping more of each sale.

Pace comparison, last four quarters: profit +59.8% vs revenue +12.9%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

→ Profit rose — but did the cash follow? Next: 161% of the last 3 years' profit arrived as cash.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 161% of SRF Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹2,554 Cr of operating cash against ₹1,835 Cr of profit. After ₹2,136 Cr of capital spending, ₹418 Cr was left as free cash.

FY26: operating cash of ₹2,554 Cr against reported profit of ₹1,835 Cr, leaving free cash of ₹418 Cr after ₹2,136 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 161% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 161%: the cash cycle stretched 24 days between FY21 and FY26 — more of each rupee of profit waits inside the cycle before arriving.

Router verdict: the bigger cash user is investment — capital spending ran 2.5× depreciation over three years, so the next section's job is to check what that build-out is buying.

→ So follow the cash to where it goes. Next: ₹5,656 Cr of building over 3 years.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

SRF Ltd's cash conversion cycle runs 69 days in FY26, up from 45 days in FY21. Capital spending ran ₹5,656 Cr over the last 3 years. At FY26 sales of ₹15,787 Cr each day of that cycle holds about ₹43.3 Cr, so roughly ₹2,984 Cr sits inside the business at any moment.

FY26: debtors at 59 days, inventory at 131 days — roughly 4.3 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 69 days, looser than FY21's 45.

The full loop: cash goes out to suppliers and production on day 0; stock waits 131 days to sell; customers pay about 59 days after that; and suppliers themselves are paid at 121 days — netting out to the 69-day cycle.

In money terms: at FY26 sales of ₹15,787 Cr, each day of the cycle holds about ₹43.3 Cr — so the 69-day loop keeps roughly ₹2,984 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹5,656 Cr over the last 3 fiscal years against ₹2,297 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹1,889 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

→ Does all this activity actually earn its cost of capital? Next: ROCE is 15% and the ROIC − WACC spread is +2.6 pp.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

SRF Ltd earns a ROCE of 15% in FY26. That is up from a trough of 8% in FY14. Return on invested capital clears the cost of that capital by +2.6 percentage points, so growth here adds value rather than only size. The wiring behind it is 11.6% net margin on 0.66× asset turns.

FY26 ROCE is 15%, recovered from a FY14 trough of 8% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 11.6% net margin × 0.66× asset turns × 1.72× balance-sheet leverage ≈ 13.2% on equity. Margin does its share; leverage is a meaningful part of the equation.

The capstone test — ROIC − WACC: 14.6% − 12.0% = a +2.6 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Positive but thin — value creation with little room for error.

→ Returns like these — is the balance sheet borrowing to make them? Next: debt-to-equity is 0.36.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

SRF Ltd carries total debt of ₹5,083 Cr against shareholder equity of ₹14,043 Cr as of Mar 26, a debt-to-equity of 0.36. On the annual view that ratio went from 0.43 in FY22 to 0.36 in FY26. Read the returns elsewhere on this page with that leverage in mind.

Mar 26: total debt of ₹5,083 Cr against shareholder equity of ₹14,043 Cr — a debt-to-equity of 0.36. On the annual view, debt-to-equity went from 0.43 (FY22) to 0.36 (FY26). Read the returns on this page with that leverage in mind.

→ Who owns this, and are they adding or leaving? Next: Domestic institutions added 5.9 points over 8 quarters.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Domestic institutions added 5.9 points of SRF Ltd over 8 quarters, the biggest move on the register. That takes domestic institutions to 22.4% of the company. Foreign institutions moved −3.3 points over the same window, to 15.4%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Domestic institutions: +5.9 points over 8 quarters to 22.4%; Foreign institutions: −3.3 points over 8 quarters to 15.4%; Promoters: +0.0 points over 8 quarters to 50.3%.

Why the register moved: rotation — foreign institutions −3.3 points against domestic institutions +5.9 points over 8 quarters, with promoters holding steady — one class of institutions handing the register to the other, not a verdict change by the people closest to the numbers.

→ One last check: does the safety math agree? Next: the balance-sheet safety line.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

SRF Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

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