Technical Analysis
SRF Limited has shown a strong bullish breakout after being in a consolidation phase for the past three years.
Before COVID-19, the stock traded around ₹800 levels, and even after the pandemic, it remained at the same levels until August 2020.
From there, it witnessed a sharp rally, reaching ₹2,500 in January 2022.
Between 2022 and 2024, the stock remained in a consolidation zone between ₹2,000 and ₹2,800.
This range was finally broken in January 2025, and the stock created a new high at ₹2,895.
In February 2025, the stock broke out again, reaching ₹2,983.
In March 2025, another breakout pushed it to ₹3,054.9, marking its all-time high.
This breakout confirms strong bullish momentum, and if ₹3,000 is sustained with a bullish candlestick pattern, the next potential target levels are:
Stop-loss Level:
Key Support Zones:
Fundamental Analysis
SRF Limited’s stock price has surged due to several positive fundamental triggers:
Strategic Expansion in Packaging Films:
Optimistic Management Outlook:
Strong Performance in the Packaging Films Segment:
Analyst Recommendations:
Analysts recommend accumulating SRF stock due to:
The stock is currently trading at 30x/25x FY24/FY25 earnings, with expectations of continued strong performance.
Financial Highlights (Q3 FY24 vs. Q2 FY24 vs. Q3 FY23)
Conclusion
With a strong breakout, strategic expansion, and positive market outlook, SRF Limited is positioned for further gains. Sustaining above ₹3,000 could lead to higher targets of ₹3,100 and ₹3,200, while ₹2,725 remains a critical stop-loss zone. Investors should track the support-resistance levels closely for future price action.
Disclaimer:
This analysis is for informational purposes only and should not be considered financial advice. Investors should conduct their own research and consult with a professional before making any trading or investment decisions. The stock market involves risk, and past performance is not indicative of future results.
SRF Limited has shown a strong bullish breakout after being in a consolidation phase for the past three years.
Before COVID-19, the stock traded around ₹800 levels, and even after the pandemic, it remained at the same levels until August 2020.
From there, it witnessed a sharp rally, reaching ₹2,500 in January 2022.
Between 2022 and 2024, the stock remained in a consolidation zone between ₹2,000 and ₹2,800.
This range was finally broken in January 2025, and the stock created a new high at ₹2,895.
In February 2025, the stock broke out again, reaching ₹2,983.
In March 2025, another breakout pushed it to ₹3,054.9, marking its all-time high.
This breakout confirms strong bullish momentum, and if ₹3,000 is sustained with a bullish candlestick pattern, the next potential target levels are:
- First Target: ₹3,100
- Second Target: ₹3,200
Stop-loss Level:
- ₹2,725 (March’s low, acting as key support)
Key Support Zones:
- ₹2,000 - ₹2,800 (Long-term support zone, if breached, could lead to a sharp decline)
- Investors should closely monitor these crucial levels for trading opportunities.
Fundamental Analysis
SRF Limited’s stock price has surged due to several positive fundamental triggers:
Strategic Expansion in Packaging Films:
- SRF has approved a ₹445 crore investment to establish a BOPP and BOPE film manufacturing facility in Indore.
- The 60,000 metric tonnes per annum plant will diversify its product portfolio and strengthen its market presence.
Optimistic Management Outlook:
- Despite a 33% decline in net profit in Q2 FY25, management remains confident in a strong performance in the upcoming quarters.
- Chairman Ashish Bharat Ram has reassured investors about an expected recovery, boosting confidence.
Strong Performance in the Packaging Films Segment:
- In Q2 FY25, revenue from Packaging Films increased 27% YoY to ₹1,421 crore (vs. ₹1,122 crore in Q2 FY24).
- Operating profit for this segment rose by 7%, from ₹77 crore to ₹83 crore, driven by higher margins for BOPET films in India.
Analyst Recommendations:
Analysts recommend accumulating SRF stock due to:
- Growth in the Chemicals Business
- Strategic expansion plans
The stock is currently trading at 30x/25x FY24/FY25 earnings, with expectations of continued strong performance.
Financial Highlights (Q3 FY24 vs. Q2 FY24 vs. Q3 FY23)
- Total Income: ₹3,491 Cr | ₹3,424 Cr | ₹3,053 Cr
- Total Expenses: ₹2,872 Cr | ₹2,886 Cr | ₹2,487 Cr
- Total Operating Profits: ₹619 Cr | ₹538 Cr | ₹566 Cr
- Profit Before Tax: ₹369 Cr | ₹284 Cr | ₹348 Cr
- Profit After Tax: ₹271 Cr | ₹201 Cr | ₹253 Cr
- Diluted Normalized EPS: ₹9.14 | ₹6.79 | ₹8.55
Conclusion
With a strong breakout, strategic expansion, and positive market outlook, SRF Limited is positioned for further gains. Sustaining above ₹3,000 could lead to higher targets of ₹3,100 and ₹3,200, while ₹2,725 remains a critical stop-loss zone. Investors should track the support-resistance levels closely for future price action.
Disclaimer:
This analysis is for informational purposes only and should not be considered financial advice. Investors should conduct their own research and consult with a professional before making any trading or investment decisions. The stock market involves risk, and past performance is not indicative of future results.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.