Shares of a chemical company backed by the Government of Singapore rose 4 percent after it announced the successful commissioning of its Rs.239 crore agrochemical intermediate facility in Dahej, Gujarat, marking a key milestone in its expansion strategy.
Share Price Variation
During Friday’s trading session, SRF Ltd‘s share price hit an intraday high of Rs.2,859.70 apiece, rising 4.8 percent from its previous close of Rs.2,744.40 apiece. The share has retreated slightly and currently trading at Rs.2,855.00 per share. Over last five years, the shares have delivered over 340 percent returns.
New Facility Expansion
SRF Ltd has announced the successful commissioning and capitalization of its new agrochemical intermediate manufacturing facility at Dahej, Gujarat, on 10th April 2025. The project, which was initially approved by the Board with an estimated investment of Rs.235 crores, has been completed at a total cost of Rs.239 crores.
This facility is expected to enhance SRF’s production capabilities and support its growing presence in the agrochemical sector. The new plant aligns with the company’s long-term strategy to expand its specialty chemicals portfolio and cater to increasing domestic and international demand.
Financial Overview
According to its recent financial updates, SRF Ltd reported consolidated revenue of Rs.3,491 crores in Q3 FY25, marking a 14 percent increase from Rs.3,053 crores in Q3 FY24. Moreover, the company saw a 7 percent increase in net profit to Rs.271 crores, compared to Rs.253 crores in the corresponding period in the previous year.
Segmental Performance
SRF Ltd reported Rs.1,496 crores in revenue from its Chemicals Business, up 7 percent year-on-year, with EBIT margins improving significantly. Specialty Chemicals drove growth, and the company expects continued momentum in Q4. The Fluorochemicals segment also performed well, led by strong domestic demand for refrigerants.
The Packaging Films segment saw a 27 percent rise in revenue to Rs.1,385 crores, with stable margins despite market pressures. Technical Textiles grew 11 percent to Rs.510 crores, driven by record capacity utilization. The Coated Fabric business remained stable, with margin improvements expected from a new hot lamination machine.
Shareholding Pattern
As of December 2024, the shareholding pattern of SRF Ltd shows that promoters hold 50.26 percent stake, while Foreign Institutional Investors hold 18.37 percent, Domestic Institutional Investors hold 17.78 percent, and Retail Investors hold 13.55 percent stake in the company. Additionally, the Government of Singapore holds a 1.34 percent stake in SRF.
Ratio Analysis
The company has a Return on Capital Employed (ROCE) of 10.14 percent and a Return on Equity (ROE) of 9.41 percent. Its Price-to-Earnings (P/E) ratio stands at 70.92, higher than the industry average of 53.28. Furthermore, the company maintains a current ratio of 2.31, a debt-to-equity ratio of 0.44, and an Earnings Per Share (EPS) of Rs.38.69.
Written by – Siddesh S Raskar
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