SRF Ltd. Stock Falls to 52-Week Low of Rs.2560.95 Amid Sector Underperformance

Recent Price Movement and Market Context

On 24 Feb 2026, SRF Ltd. touched an intraday low of Rs.2560.95, down 3.35% from the previous close, underperforming its sector by approximately 3.5%. This decline comes as the broader Sensex index also faced a sharp fall, closing 807.68 points lower at 82,244.86, a 1.26% drop from the previous day. Despite the Sensex being only 4.76% below its 52-week high of 86,159.02, SRF’s stock has lagged significantly, trading below all key moving averages including the 5-day, 20-day, 50-day, 100-day, and 200-day marks.

Over the past year, SRF Ltd. has delivered a negative return of 7.01%, contrasting with the Sensex’s positive 10.43% gain over the same period. The stock’s 52-week high was Rs.3319, indicating a substantial retracement of nearly 23% from that peak.

Valuation and Financial Metrics

SRF Ltd. currently holds a Mojo Score of 43.0 with a Mojo Grade of Sell, downgraded from Hold on 16 Feb 2026. The company’s market capitalisation stands at Rs.77,788 crore, making it the second largest entity in the specialty chemicals sector, accounting for 17.85% of the sector’s market cap. Despite this scale, the stock’s valuation metrics suggest a cautious stance.

The company’s Return on Capital Employed (ROCE) is reported at 13.8%, which, while respectable, is accompanied by a high Enterprise Value to Capital Employed ratio of 4.7, indicating an expensive valuation relative to capital employed. The PEG ratio stands at 0.7, reflecting the relationship between price, earnings growth, and valuation, but the stock trades at a discount compared to its peers’ historical averages.

Profitability has shown strength, with profits rising by 61.3% over the past year. However, this has not translated into positive stock returns, as SRF has underperformed the BSE500 index over the last three years, one year, and three months, signalling challenges in converting earnings growth into shareholder value appreciation.

Operational and Financial Strengths

SRF Ltd. demonstrates strong management efficiency, with a higher ROCE of 17.09% reported in recent periods. The company maintains a conservative capital structure, with a low debt-to-equity ratio of 0.35 times as of the half-year mark and a Debt to EBITDA ratio of 1.28 times, underscoring its ability to service debt comfortably.

Operating profit to interest coverage ratio is robust at 11.91 times, reflecting strong earnings relative to interest expenses. The company has also delivered positive results for four consecutive quarters, with the latest quarter’s PAT reaching Rs.502.82 crore, growing 24.3% compared to the previous four-quarter average.

Institutional investors hold a significant 37.7% stake in SRF Ltd., indicating confidence from entities with substantial analytical resources and long-term perspectives.

Sector Position and Industry Contribution

SRF Ltd. operates within the specialty chemicals sector, contributing approximately 9.80% of the industry’s annual sales, which total Rs.15,484.68 crore. It ranks just behind Adani Enterprises in market capitalisation within the sector, highlighting its significant presence and influence.

Despite its scale and financial strengths, the stock’s recent price action reflects a cautious market sentiment, with the share price retreating to levels last seen a year ago. The stock’s trading below all major moving averages further emphasises the subdued momentum relative to both the sector and broader market indices.

Summary of Key Metrics

To summarise, SRF Ltd.’s stock performance and valuation metrics as of 24 Feb 2026 are as follows:

• 52-Week Low: Rs.2560.95
• 52-Week High: Rs.3319
• One-Year Return: -7.01%
• Sensex One-Year Return: +10.43%
• Mojo Score: 43.0 (Sell, downgraded from Hold)
• Market Capitalisation: Rs.77,788 crore
• ROCE: 13.8%
• Debt to Equity Ratio: 0.35 times
• Debt to EBITDA Ratio: 1.28 times
• Operating Profit to Interest Coverage: 11.91 times
• Latest Quarterly PAT: Rs.502.82 crore (24.3% growth)
• Institutional Holdings: 37.7%

These figures illustrate a company with solid financial fundamentals and operational efficiency, yet facing headwinds in translating these strengths into sustained stock price appreciation.

Market and Technical Indicators

Technically, the stock’s position below all key moving averages signals a bearish trend in the short to medium term. The broader market’s mixed signals, with the Sensex trading below its 50-day moving average but the 50DMA still above the 200DMA, suggest a cautious environment for equities, particularly for stocks like SRF Ltd. that have underperformed their benchmarks.

While the Sensex remains close to its 52-week high, SRF Ltd.’s divergence from this trend highlights sector-specific and company-specific factors influencing investor sentiment and price action.

Conclusion

SRF Ltd.’s fall to a 52-week low of Rs.2560.95 marks a notable point in its recent trading history, reflecting a combination of valuation concerns, relative underperformance against benchmarks, and technical weakness. Despite strong profitability growth and robust financial ratios, the stock’s price has not kept pace with broader market gains, underscoring the complex dynamics at play within the specialty chemicals sector and the wider market environment.

Investors and market participants will continue to monitor the stock’s performance in relation to sector trends and broader economic indicators as it navigates this challenging phase.

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