SRF Limited

SRF.BO•conglomerates

Current Price

2,932.35INR

per share

Fair Value

902.34INR

Overvalued

225.0%

Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 12.28%, lower than industry average of 12.45%.

Growth Trajectory

Profitability

In the growth phase company makes 15.14% profit on every dollar of sales, lower than industry average of 19.13%.

Profitability Trajectory

Risk Profile

Investors expect at least 7.02% return to justify the risk of holding stock.

Risk vs Return

Required Return (Cost of Capital) (%)

Return on Invested Capital (%)

Financial Health Overview

Enterprise Value

303.51B INR

Equity Value

267.47B INR

FCF Yield

15.00%

Average ROIC

12.62%

Cost of Capital

7.69%

P/E Ratio

48.55x

Financial Metric	Most Recent 12 months (INR)	Previous Year (INR)
Revenues	146.94B INR	129.10B INR
Operating Income or EBIT	22.66B INR	19.69B INR
Interest Expense	3.31B INR	2.75B INR
Book Value Of Equity	126.26B INR	114.79B INR
Book Value Of Debt	47.26B INR	50.31B INR
Cash and Marketable Securities	11.22B INR	8.39B INR
Number of Shares Outstanding	296.42M	--
Minority interests	0 INR	0 INR
Current Stock Price	2932.35 INR	--
Effective Tax Rate	21.00%	--
Marginal Tax Rate	30.00%	--

Performance vs Industry

Revenue Growth

+1.36%

13.81%Company

12.45%Industry

Above Industry

Operating Margin

-3.71%

15.42%Company

19.12%Industry

Below Industry

SRF Limited shows above-average growth compared to industry peers, suggesting strong market position and growth opportunities.

Terminal Value Analysis

Growth Rate

4.65%

Cost of Capital

8.88%

Return on Capital

8.88%

Reinvestment Rate

52.36%

Terminal value represents 76% of total enterprise value, based on 4.65% perpetual growth and 8.88% discount rate.

Equity Value Breakdown

Component	Value	Type
Present Value (Terminal Value)	230.75B INR	Add
Present Value (Cash Flow Over Next 10 Years)	72.76B INR	Add
Value of Operating Assets	303.51B INR	Sub-total
Debt	47.26B INR	Subtract
Minority Interests	—	Subtract
Cash	11.21B INR	Add
Value of Equity	267.47B INR	Sub-total
Number of Shares	296.42M shares	Divisor
Estimated Value per Share (Fair Value)	902.34 INR	Total
Current Market Price	2.93K INR	Reference

Financial Projections

Total FCF Present Value

72.76B INR

Avg Revenue Growth

8.92%

Avg Operating Margin

15.07%

Avg ROIC

12.62%

Year	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal Year
REVENUE
Revenue	168.75B INR	189.48B INR	212.75B INR	238.89B INR	268.24B INR	297.09B INR	324.52B INR	349.52B INR	371.11B INR	388.36B INR	406.42B INR
Growth Rate	14.84%	12.28%	12.28%	12.28%	12.28%	10.75%	9.23%	7.70%	6.17%	4.65%	4.65%
PROFITABILITY
Operating Income	26.02B INR	28.86B INR	32.20B INR	35.94B INR	40.10B INR	44.41B INR	48.51B INR	52.25B INR	55.48B INR	58.06B INR	60.76B INR
Operating Margin	15.42%	15.23%	15.13%	15.04%	14.95%	14.95%	14.95%	14.95%	14.95%	14.95%	14.95%
EBIT (1-tax)	20.55B INR	22.80B INR	25.44B INR	28.39B INR	31.68B INR	34.29B INR	36.58B INR	38.46B INR	39.83B INR	40.64B INR	42.53B INR
CASH FLOW
Reinvestment	12.46B INR	13.99B INR	15.70B INR	17.63B INR	17.34B INR	32.96B INR	30.05B INR	25.95B INR	20.74B INR	21.71B INR	22.27B INR
Free Cash Flow	8.09B INR	8.81B INR	9.73B INR	10.75B INR	14.33B INR	1.32B INR	6.52B INR	12.50B INR	19.09B INR	18.93B INR	20.26B INR
Terminal Value	--	--	--	--	--	--	--	--	--	--	479.00B INR
Present Value	7.56B INR	7.69B INR	7.94B INR	8.19B INR	10.21B INR	877.75M INR	4.01B INR	7.11B INR	10.01B INR	9.12B INR	—
EFFICIENCY
ROIC	12.66%	13.04%	13.48%	13.88%	14.26%	14.32%	13.42%	12.71%	12.12%	11.64%	8.88%
Cost of Capital	7.02%	7.02%	7.02%	7.02%	7.02%	7.39%	7.76%	8.13%	8.50%	8.88%	8.88%
Sales/Capital	1.66x	1.66x	1.66x	1.66x	1.66x	0.83x	0.83x	0.83x	0.83x	0.83x	—

Profitability & Efficiency

Operating Margin (%)

ROIC (%)

Value Creation Analysis

ROIC (%)

Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow (₹B)

Reinvestment (₹B)