ScoreWhy is SRF Ltd. ?
1
Poor long term growth as Operating profit has grown by an annual rate 8.25% of over the last 5 years
2
With ROCE of 14.2, it has a Very Expensive valuation with a 4.5 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 -11.35%, its profits have risen by 56.6% ; the PEG ratio of the company is 0.6
3
Below par performance in long term as well as near term
- Along with generating -11.35% 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 ReportHow 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, Low Return
Absolute
Risk Adjusted
Volatility
SRF
-11.33%
-0.38
29.61%
Sensex
-4.93%
-0.37
13.39%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
12.22%
EBIT Growth (5y)
8.25%
EBIT to Interest (avg)
11.61
Debt to EBITDA (avg)
1.52
Net Debt to Equity (avg)
0.28
Sales to Capital Employed (avg)
0.91
Tax Ratio
20.08%
Dividend Payout Ratio
17.12%
Pledged Shares
0
Institutional Holding
37.92%
ROCE (avg)
16.86%
ROE (avg)
15.63%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
34
Industry P/E
64
Price to Book Value
5.48
EV to EBIT
27.47
EV to EBITDA
21.19
EV to Capital Employed
4.51
EV to Sales
4.76
PEG Ratio
0.61
Dividend Yield
0.39%
ROCE (Latest)
14.25%
ROE (Latest)
13.63%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bearish
Bearish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend27What is working for the Company
OPERATING CF(Y)
Highest at Rs 2,345.55 Cr
PAT(Latest six months)
At Rs 1,349.89 cr has Grown at 40.85%
OPERATING PROFIT TO INTEREST(Q)
Highest at 18.02 times
PBT LESS OI(Q)
At Rs 945.24 cr has Grown at 65.9% (vs previous 4Q average
CASH AND CASH EQUIVALENTS(HY)
Highest at Rs 610.96 cr
NET SALES(Q)
Highest at Rs 5,033.26 cr
PBDIT(Q)
Highest at Rs 1,236.72 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 24.57%
EPS(Q)
Highest at Rs 25.60
-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 18.02 times and Grown
each quarter in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Operating Cash Flow - Annually
Highest at Rs 2,345.55 Cr and Grown
each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 945.24 cr has Grown at 65.9% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 569.88 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 758.87 cr has Grown at 58.6% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 478.58 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Net Sales - Quarterly
Highest at Rs 5,033.26 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Net Sales - Quarterly
At Rs 5,033.26 cr has Grown at 27.5% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 3,946.63 CrMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 1,236.72 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 24.57%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 945.24 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 758.87 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 25.60
in the last five quartersMOJO 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 periodsMOJO 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 periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
Non Operating Income - Quarterly
Highest at Rs 33.91 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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