Best Chemical Stock,fundamentally strong

 SRF Ltd.

SRF Ltd is a fundamental strong company. Its established in 1970 

SRF Limited is chemical and multi business entity engaged in the 

manufacturing of industrial and specialist intermediates the companies diversified business  portfolio covers fluor

ochemicals,speciality chemicals. 

Technical textiles and coated and packaging films and laminated fabrics.

Revenues

Chemicals Business 43% of revenues

Packaging Films Business 40% of revenues

Technical Textiles Business 14% of revenues

Other Business 3% of revenues

• Market Cap ₹ 72,775 Cr.

• Current Price ₹ 2,455

• High / Low₹  2,773 / 1,743

• Stock P/E 34.6

• Book Value ₹ 289

• Dividend Yield 0.29 %

• ROCE 24.0 %

• ROE 24.5 %

• Face Value₹ 10.0

• Sales growth 5Years 20.9 %

• EPS₹ 70.9

• Sales growth 7Years 15.5 %

• Sales last year ₹12,434 Cr.

• Debt₹ 3,655 Cr.

• No. Eq. Shares 29.6

• Promoter holding 50.7 %

• CMP / FCF277

• Price to Earning 34.6

• Sales growth 3Years 20.5 %

• 3Yrs PE2 1.9

• PEG Ratio 1.17

• Price to book value 8.50

Share Holding Pattern

• PROMOTER: 50.73%

• FIIS: 19.21%

• DII :9.37%

• Public :20.69%

SRF Stock Price Analysis and Quick Research Report. Is SRF an attractive stock to invest in?

 

Stock investing requires careful analysis of financial data to find out the company's true net worth. This is generally done by examining the company's profit and loss account, balance sheet and cash flow statement. This can be time-consuming and cumbersome. An easier way to find out about a company's performance is to look at its financial ratios, which can help to make sense of the overwhelming amount of information that can be found in a company's financial statements.

Here are the few indispensable tools that should be a part of every investor’s research process.

• PE ratio: - Price to Earnings' ratio, which indicates for every rupee of earnings how much an investor is willing to pay for a share. A general rule of thumb is that shares trading at a LOW P/E are undervalued (it depends on other factors too). SRF has a PE ratio of 42.22 which is high and comparatively overvalued .

• Return on Assets (ROA): - Return on Assets measures how effectively a company can earn a return on its investment in assets. In other words, ROA shows how efficiently a company can convert the money used to purchase assets into net income or profits. SRF has ROA of 9.47 % which is a bad sign for future performance. (higher values are always desirable)

• Current ratio: - The current ratio measures a company's ability to pay its short-term liabilities with its short-term assets. A higher current ratio is desirable so that the company could be stable to unexpected bumps in business and economy. SRF has a Current ratio of 1.43 .

• Return on equity: - ROE measures the ability of a firm to generate profits from its shareholders investments in the company. In other words, the return on equity ratio shows how much profit each rupee of common stockholders’ equity generates. SRF has a ROE of 16.86 % .(higher is better)

• Debt to equity ratio: - It is a good metric to check out the capital structure along with its performance. SRF has a D/E ratio of 0.41 which means that the company has low proportion of debt in its capital.

• Inventory turnover ratio: - Inventory Turnover ratio is an activity ratio and is a tool to evaluate the liquidity of a company's inventory. It measures how many times a company has sold and replaced its inventory during a certain period of time. SRF has an Inventory turnover ratio of 5.94 which shows that the management is inefficient in relation to its Inventory and working capital management.

• Sales growth: - SRF has reported revenue growth of 9.09 % which is poor in relation to its growth and performance.

• Operating Margin: - This will tell you about the operational efficiency of the company. The operating margin of SRF for the current financial year is 24.92 %.

• Dividend Yield: - It tells us how much dividend we will receive in relation to the price of the stock. The current year dividend for SRF is Rs 24 and the yield is 0.68 %.

Business area of the company

The Company is a chemical based multi-business entity engaged in the manufacturing of industrial and specialty intermediates. The company classifies its businesses as Technical Textiles, Chemicals, Packaging Films and Other Businesses.

Products

The company’s product portfolio broadly categorized into - Technical Textiles, Chemicals and Packaging Films.

Milestones

• 1970: Incorporated as Shri Ram Fibers

• 1973: The Company established its first plant in Manali near Chennai.

• 1974: Commenced operations of nylon tyre cord at Manali.

• 1977: Production of fishnet twines started.

• 1979: Commenced production of nylon engineering plastics.

• 1983: Commissioning of belting fabrics at Viralimalai.

• 1986: Set up SRF Finance Ltd.

• 1986: Commissioning of coated fabrics at Viralimalai.

• 1989: Entered Chemicals Business with production of refrigerants.

• 1990: Shri Ram Fibers renamed as SRF Ltd.

• 1993: Divested SRF Nippondenso.

• 1995: Commercial production of Chloromethanes.

• 1995: Ventured into Packaging Films Business.

• 1995: Started Vision Care Division at Bangalore.

• 1996: Set up the company’s first overseas plant (tyre cord) in Dubai.

• 1996: Acquired Ceat’s tyre cord fabrics plant situated at Gwalior.

• 1997: Divested Vision Care Division.

• 1997: Divested SRF Finance Ltd. to GE Capital.

• 2000: Acquired Dupont’s tyre cord fabrics plant situated at Gummidipoondi.

• 2002: Polyester films, fishnet twines and engineering plastics businesses spun off as a separate entity; SRF Polymers Ltd.

• 2004: Became the first tyre cord company outside Japan to win the Deming Prize.

• 2008: Acquired two foreign companies - Thailand based Thai Baroda Industries Limited (TBIL), a manufacturer of nylon tyre cord, and South Africa based Industex Technical Textile (Pty) Limited, a manufacturer of belting fabrics.

• 2009: Purchase of two businesses of SRF Polymers Ltd., the Engineering Plastics and the Industrial Yarn Business.

• 2009: Became the first Indian manufacturer of polyester industrial yarn (PIY) by setting up a 14,400 MT PIY for producing PIY to be used in radial tyres, conveys belts and coated fabrics.

• 2010: Ventured into Laminated Fabrics by setting up a green-field plant of 900 sqm annual capacity at Kashipur.

• 2012: Commenced operations in the newly commissioned Chemical Complex at Dahej in Gujarat.

• 2012: Wins the prestigious Deming Prize for the Chemicals Business.

• 2013: Set up a green-field facility for BOPET films in Thailand.

• 2013: Ventured into BOPP films by setting up a green-field plant in South Africa.

• 2014: Scaled up its HFC 134a capacity by three fold to around 17,500 tonnes per annum with the commissioning for its second HFC 134a plant of 12,500 tpa capacity at Dahej.

• 2015: SRF acquires Global DuPont Dymel HFC 134a Pharma Business.

• 2017: SRF inks Pact to Buy Mexichem’s HFC-125 Assets.