When considering investments in the current volatile market, SRF Limited emerges as a significant player. As an Indian multinational chemical manufacturer, SRF Limited has carved a niche in the industry. Investors frequently seek accurate predictions to make informed decisions. This blog aims to provide a detailed analysis of SRF’s share price targets from 2024 to 2040, based on financial data, expert insights, and market trends.
Overview of SRF Limited
History and Background: SRF Limited, originally established as Shri Ram Fibres Limited in 1970, is a prominent player in the chemical manufacturing industry. Headquartered in Gurugram, Haryana, SRF has expanded its operations across various sectors, including fluorochemicals, packaging films, technical textiles, and more. Over the years, SRF has evolved into a multinational entity, recognized for its innovation and commitment to sustainability.
Key Areas of Business: Fluorochemicals: SRF is the only Indian company that produces ozone-friendly refrigerants. Packaging Films: These protect dry snacks and preserve food aromas, offering flexible packaging solutions. Technical Textiles: Products include tyre cord fabrics, belting fabrics, and industrial yarn.
Financial Highlights
SRF Limited boasts a strong financial foundation, with a market capitalization of ₹72,256.52 Crore. The company’s PE Ratio stands at 51.80, indicating that investors are willing to pay a high price for SRF’s earnings. Additionally, SRF has a Return on Assets (ROA) of 8.36% and a Return on Equity (ROE) of 13.94%, showcasing its efficient use of resources.
| Financial Metric | Value |
| Market Cap | ₹72,256.52 Crore |
| PE Ratio | 51.80 |
| Return on Assets (ROA) | 8.36% |
| Return on Equity (ROE) | 13.94% |
| Current Ratio | 1.25 |
| Book Value | ₹354.85 |
| 52 Week High | ₹2,795.63 |
| 52 Week Low | ₹2,040 |
| Dividend Yield | 0.5% |
Detailed Financial Analysis
SRF Limited’s consistent performance over the years is a testament to its solid business model. The company’s PE Ratio of 51.80 suggests a bullish outlook from investors, while the ROE of 13.94% indicates profitability. However, a deep dive into year-on-year comparisons reveals a slight dip in performance over the last fiscal year, primarily due to global economic challenges.
SRF Share Price Target Analysis
Investors should consider both historical data and future projections when evaluating SRF’s potential. Below are the detailed share price targets for the years 2024, 2025, 2027, 2030, and 2040:
SRF Share Price Target for 2024
SRF’s venture into the fluorochemicals market since 1989 has been a cornerstone of its growth. The company’s position as the sole Indian producer of ozone-friendly refrigerants underscores its market dominance.
| Year | 1st Price Target | 2nd Price Target |
| 2024 | ₹2,410.94 | ₹2,545.32 |
SRF Share Price Target for 2025
SRF’s packaging films division has revolutionized the way food products are preserved, further expanding its footprint in the FMCG and industrial sectors.
| Year | 1st Price Target | 2nd Price Target |
| 2025 | ₹2,685.41 | ₹2,799.12 |
SRF Share Price Target for 2027
The company’s expertise in PVC synthetic coated fabrics places it at the forefront of architectural and industrial fabric solutions, ensuring a stable revenue stream.
| Year | 1st Price Target | 2nd Price Target |
| 2027 | ₹3,145.23 | ₹3,255.36 |
SRF Share Price Target for 2030
SRF’s technical textiles division, particularly in tyre cord fabrics and industrial yarn, continues to grow, driven by demand in the automotive and heavy industries.
| Year | 1st Price Target | 2nd Price Target |
| 2030 | ₹3,885.63 | ₹4,052.52 |
SRF Share Price Target for 2040
With a strong focus on innovation and R&D, SRF is well-positioned to continue its upward trajectory, particularly in the chemical technology space.
| Year | 1st Price Target | 2nd Price Target |
| 2040 | ₹5,352.41 | ₹5,485.96 |
Peer Comparison
SRF Limited faces competition from several key players in the chemical manufacturing sector. However, its diversified product portfolio and focus on sustainability give it an edge.
| Company | Market Cap (Cr) | PE Ratio | ROE |
| SRF Limited | ₹72,256.52 | 51.80 | 13.94% |
| Birla Crop | ₹15,000 | 45.20 | 12.10% |
| 3M India | ₹30,000 | 40.50 | 15.00% |
Investor Types and Holding Patterns
Understanding the types of investors and their holdings is crucial for assessing the stock’s stability. SRF’s promoters hold a significant 50.20%, indicating strong confidence in the company’s future. Additionally, foreign institutional investors (FII) contribute 20.10%, reflecting international interest.
| Investor Type | Holding Percentage |
| Promoters | 50.20% |
| Public | 14.90% |
| FII | 20.10% |
| DII | 14.80% |
Advantages and Disadvantages of Investing in SRF
Advantages
- Revenue Growth: SRF has seen consistent revenue growth, particularly over the past three years, with a healthy ROCE of 21.96%.
- Strong Market Position: The company’s leadership in niche markets like refrigerants and technical textiles provides a competitive edge.
- Efficient Cash Flow Management: With a cash conversion cycle of 24.23 days, SRF demonstrates strong operational efficiency.
Disadvantages
- High PE Ratio: The current PE Ratio of 51.80 may indicate that the stock is overvalued, posing a risk to new investors.
- Profit Growth Deceleration: The recent dip in profit growth, down to 14.52% over the last year, could be a concern if the trend continues.
Also Read: HBL Power Share Price Target: A Comprehensive Analysis for 2024, 2025, 2027, 2030, and 2040
FAQs
Conclusion
SRF Limited stands as a robust investment opportunity, particularly for those looking at long-term growth. With a solid foundation in niche markets and a consistent track record, SRF’s future in the stock market looks promising. Investors are advised to consider the share price targets for 2024, 2025, 2027, 2030, and 2040, alongside their investment strategy, to make informed decisions.
Disclaimer: This blog is for educational purposes only and should not be considered as financial advice. Always consult with a SEBI-registered advisor before making any investment decisions.
