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.
Exención de responsabilidad
La información y las publicaciones que ofrecemos, no implican ni constituyen un asesoramiento financiero, ni de inversión, trading o cualquier otro tipo de consejo o recomendación emitida o respaldada por TradingView. Puede obtener información adicional en las Condiciones de uso.
Exención de responsabilidad
La información y las publicaciones que ofrecemos, no implican ni constituyen un asesoramiento financiero, ni de inversión, trading o cualquier otro tipo de consejo o recomendación emitida o respaldada por TradingView. Puede obtener información adicional en las Condiciones de uso.