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503806: Lower Discount Rate May Support Stronger Long Term Profitability

E-commerce And Sustainable Packaging Will Open New Markets

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503806
AnalystHighTarget
Not Invested
Published 21 Jun 2025

Update shared on 12 Dec 2025

Fair value Increased 5.23%
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AnalystHighTarget's Fair Value
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1Y
35.7%
7D
2.2%

Analysts have raised their fair value estimate for SRF by approximately $191 to $3,841 per share, citing a modestly lower discount rate and slightly higher long term profit margin expectations that more than offset a small reduction in projected revenue growth.

What's in the News

  • Chief Financial Officer Rahul Jain will step down from his role at the close of business on 12 December 2025. SRF has initiated the process to identify a successor and is emphasizing a smooth transition to maintain financial governance standards (Key Developments).
  • SRF has scheduled a board meeting on 27 October 2025 to consider and approve unaudited financial results for the quarter and half year ended 30 September 2025 (Key Developments).
  • The same board meeting will also evaluate a proposal to set up a facility dedicated to producing a range of specialty fluoropolymers, signaling continued expansion in high value chemical segments (Key Developments).

Valuation Changes

  • The fair value estimate has risen slightly, increasing from ₹3,650 to ₹3,841 per share. This reflects a modestly more optimistic intrinsic valuation.
  • The discount rate has fallen slightly, moving from 13.66% to 13.47%. This implies a marginal reduction in perceived risk or required return.
  • The revenue growth assumption has edged down slightly, from 19.19% to 18.82%. This indicates a small tempering of top line expectations.
  • The net profit margin assumption has risen modestly, from 15.26% to 15.86%. This points to a slightly more favorable long term profitability outlook.
  • The future P/E multiple has increased marginally, from 40.80x to 40.90x. This suggests a small uplift in valuation multiples applied to forward earnings.

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Disclaimer

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