SRF Ltd. (SRF) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Navin Fluo.Intl.

Aether Industri.

Anupam Rasayan

Aarti Industries

Himadri Special

Atul

Pidilite Inds.

BASF India

SRF

Gujarat Fluoroch

Deepak Nitrite

Why is SRF Ltd. ?

With ROCE of 14.2, it has a Very Expensive valuation with a 4.7 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -6.87%, its profits have risen by 53.1% ; the PEG ratio of the company is 0.8

Below par performance in long term as well as near term

Along with generating -6.87% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Specialty Chemicals)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is SRF for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

SRF

-6.87%

-0.25

27.88%

Sensex

-3.33%

-0.25

13.43%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.15%

EBIT Growth (5y)

11.99%

EBIT to Interest (avg)

11.61

Debt to EBITDA (avg)

1.52

Net Debt to Equity (avg)

0.30

Sales to Capital Employed (avg)

0.91

Tax Ratio

20.27%

Dividend Payout Ratio

17.12%

Pledged Shares

Institutional Holding

37.87%

ROCE (avg)

16.86%

ROE (avg)

16.23%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

5.75

EV to EBIT

33.11

EV to EBITDA

24.83

EV to Capital Employed

4.72

EV to Sales

5.36

PEG Ratio

0.80

Dividend Yield

0.33%

ROCE (Latest)

14.25%

ROE (Latest)

13.63%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

19What is working for the Company

OPERATING PROFIT TO INTEREST(Q)

Highest at 16.55 times

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 610.96 cr

NET SALES(Q)

Highest at Rs 4,615.17 cr

PBDIT(Q)

Highest at Rs 1,025.68 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 22.22%

PBT LESS OI(Q)

Highest at Rs 743.91 cr.

PAT(Q)

Highest at Rs 591.02 cr.

EPS(Q)

Highest at Rs 19.63

-2What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.02 times

Loading Valuation Snapshot...

Here's what is working for SRF

Operating Profit to Interest - Quarterly

Highest at 16.55 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales - Quarterly

Highest at Rs 4,615.17 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 1,025.68 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 22.22%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 743.91 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 743.91 cr has Grown at 34.7% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 552.12 Cr

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 591.02 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 591.02 cr has Grown at 27.8% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 462.34 Cr

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 19.63

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 610.96 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for SRF

Debtors Turnover Ratio- Half Yearly

Lowest at 6.02 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio