SRF (SRF)

FairStock Score: 59/100 — STEADY

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I wear Graham's hat for safety and Buffett's hat for quality. SRF at ₹2,606, with a ₹77,243 Cr market cap, looks like a decent commodity chemicals business rather than an obvious bargain. Returns are respectable but not exceptional: ROE 14.09%, ROCE 12.27%. Debt/equity is manageable at 0.36, and the Piotroski F-Score of 8/9 plus Altman Z-Score of 3.92 suggest the balance sheet is not stretched. Free cash flow of ₹1,005 Cr is a genuine positive. Growth has been strong: sales grew 24.91%, profit 42.64%, and the 5-year revenue CAGR is 15.30%. The latest quarter delivered ₹3,713 Cr sales and ₹433 Cr net profit. Promoter holding of 50.26% gives useful alignment. However, the price asks for a lot. P/E is 35.71, P/B is 5.50, and EV/EBITDA is 123.10, which leaves little room for commodity cyclicality. The Graham Number is ₹758.56, so margin of safety is -237.77%. DCF intrinsic value is ₹1,815.37, also below the market price. PEG of 1.81 is not cheap, and dividend yield of 0.38% offers scant comfort. The 52-week range of ₹2,355–₹3,210 shows how volatile sentiment can be in this sector. FairStock Score 59/100—STEADY—captures a fair business, not a fat pitch. I would want to see sales and profit growth hold, free cash flow persist, and debt/equity stay controlled. At ₹2,606, I see more valuation risk than margin of safety. A wonderful commodity chemical company? Perhaps. But not at this price.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer