chemicals
SRF Limited
SRF · Nifty 50
₹2,705.5
Price 2026-06-17
At a Glance
Fundamental
100/100
STRONG
Trust
95/100
Verification
Coverage
44/100
LIMITED
Quick Take
SRF Limited scores 100/100 on fundamentals (strong). SRF Limited: BROAD EXPANSION regime.
Fundamental Score: 100/100 · STRONG · 1 signals detected
DuPont Analysis
ROE 14.1% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 14.05% is moderate margin-driven and stable. Net margin of 12.3% × asset turnover of 0.67x × leverage of 1.7x.
What This Means
Net margin of 12.3% means the company keeps ₹12.3 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 0.67x means the company efficiently uses its assets to generate revenue. Leverage of 1.7x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.
Margin Structure
Gross
48.7%
Operating
17.3%
Net
12.3%
Gross margin 48.7% → operating margin 17.3% → net margin 12.3%. Margins are IMPROVING. Strong pricing power with stable gross margins suggests the improvement is from operating leverage — sustainable.
Financial Health
Earnings Quality
ADEQUATECash flow covers net income 1.3x — earnings are ADEQUATE quality. Cash conversion is reasonable.
Debt Sustainability
COMFORTABLEInterest covered 9.4x — very comfortable. Debt service is not a concern. Debt/EBITDA at 1.4x is low — balance sheet has capacity.
Free Cash Flow
MODERATEFCF margin at 4.6% — moderate. Generating cash after investments.
Peer Comparison
SRF Limited is compared against 10 peers in the chemicals sector.
Key Watchpoints
Breaks above ₹2841 (+5%)
Trend reversal confirmation
Breaks below ₹2570 (-5%)
Further downside risk
Chemicals sector entering leadership
Sector rotation signal
Detected Patterns
Risk Flags
Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.
High refinancing risk. Company needs to roll over debt frequently. Vulnerable to credit market freezes.
Potential accounting concerns. Cross-check with earnings quality flags.
Governance structure concerns. Independent director representation may be weak.
Profits are from core operations, not one-offs. High quality.
Modern asset base. Lower near-term capex requirements.
⚠️ 1 critical + 3 warning flags. Exercise caution.
Data Quality
News Correlation
50 articles scanned for fundamental themes