₹3,101 - That's What Analysts Think SRF Limited (NSE:SRF) Is Worth After These Results

Shareholders might have noticed that SRF Limited (NSE:SRF) filed its first-quarter result this time last week. The early response was not positive, with shares down 4.6% to ₹3,041 in the past week. SRF missed revenue estimates by 2.5%, coming in at₹38b, although statutory earnings per share (EPS) of ₹14.58 beat expectations, coming in 4.0% ahead of analyst estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Following the latest results, SRF's 29 analysts are now forecasting revenues of ₹168.8b in 2026. This would be a solid 12% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 34% to ₹64.49. In the lead-up to this report, the analysts had been modelling revenues of ₹168.4b and earnings per share (EPS) of ₹64.00 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

Check out our latest analysis for SRF

The consensus price target rose 5.2% to ₹3,101despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of SRF's earnings by assigning a price premium. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic SRF analyst has a price target of ₹3,701 per share, while the most pessimistic values it at ₹1,871. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that SRF's rate of growth is expected to accelerate meaningfully, with the forecast 17% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 12% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 13% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect SRF to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for SRF going out to 2028, and you can see them free on our platform here..

You can also see whether SRF is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.