SRF Ltd.
ISIN: INE647A01010 • Market Cap: ₹76,329 Cr
The 5-Pillar Quality Audit for SRF Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (22.4%), Return on Capital Employed (15.2%), and equity compounding (13.1%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.36 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (9.0%) and 3Y PAT CAGR (17.4%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 35.31 vs PEG of 3.12 and Dividend Yield of 0.3%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 50.3%, backed by 37.9% institutional ownership.
Key Fundamental Strengths
Deep Institutional Sponsorship (37.9%)
Mutual funds, domestic DIIs, and foreign FIIs hold 37.9%, providing strong governance scrutiny.
Consistent Market Standing (Large Cap)
Established player in the Chemicals sector with an overall fundamental quality score of 73/100.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Chemicals)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Chemicals space.
Quantitative Strategy Eligibility
Checking SRF against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 73/100 and clean gearing.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Chemicals Sector Peer Comparison
Compare SRF directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| SRF Ltd. (SRF)Current | 73/100 | ₹76,329 Cr | 35.31 | 15.2% | 0.36 | — |
| Solar Industries India Ltd. (SOLARINDS) | 80/100 | ₹1.79 Lakh Cr | 89.97 | 30.2% | 0.23 | View |
| Pidilite Industries Ltd. (PIDILITIND) | 75/100 | ₹1.68 Lakh Cr | 63.40 | 28.7% | 0.01 | View |
| Coromandel International Ltd. (COROMANDEL) | 72/100 | ₹60,148 Cr | 32.83 | 21.6% | 0.07 | View |
| Linde India Ltd. (LINDEINDIA) | 61/100 | ₹57,146 Cr | 104.59 | 12.2% | 0.00 | View |
| Gujarat Fluorochemicals Ltd. (FLUOROCHEM) | 55/100 | ₹51,405 Cr | 83.59 | 10.6% | 0.28 | View |
Frequently Asked Questions: SRF Ltd.
Q:What is the 5-Pillar Fundamental Score for SRF Ltd. (SRF)?
SRF Ltd. has a RupeeTools Fundamental Score of 73/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (76/100), Financial Health (85/100), Growth (62/100), Valuation (50/100), and Ownership Quality (85/100).
Q:Is SRF fundamentally strong for long-term investment?
Yes, SRF exhibits solid fundamental strength with a 73/100 score, driven by a return on equity of 13.1% and a debt-to-equity ratio of 0.36.
Q:Does SRF pass the Coffee Can Investing filter?
No. SRF does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does SRF compare against other Chemicals peers?
Within India's Chemicals sector, SRF trades at a P/E of 35.31 and generates an ROCE of 15.2%. Compare its 5-Pillar score of 73/100 against top sector peers like Solar Industries India Ltd. (80/100), Pidilite Industries Ltd. (75/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.