BSE:532842

Stock Analysis Report

Sree Rayalaseema Hi-Strength Hypo

Executive Summary

Sree Rayalaseema Hi-Strength Hypo Limited manufactures and sells inorganic chemicals in India.

Snowflake

Fundamentals

Flawless balance sheet and undervalued.

Share Price & News

How has Sree Rayalaseema Hi-Strength Hypo's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

11.1%

532842

2.0%

IN Chemicals

3.8%

IN Market


1 Year Return

-26.0%

532842

17.2%

IN Chemicals

6.0%

IN Market

Return vs Industry: 532842 underperformed the Indian Chemicals industry which returned 17.2% over the past year.

Return vs Market: 532842 underperformed the Indian Market which returned 6% over the past year.


Shareholder returns

532842IndustryMarket
7 Day11.1%2.0%3.8%
30 Day-3.8%4.3%2.9%
90 Day8.1%11.9%2.9%
1 Year-24.6%-26.0%20.2%17.2%8.2%6.0%
3 Year-15.2%-18.6%37.6%32.1%23.0%16.7%
5 Year99.8%84.2%130.7%113.0%43.6%30.0%

Price Volatility Vs. Market

How volatile is Sree Rayalaseema Hi-Strength Hypo's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sree Rayalaseema Hi-Strength Hypo undervalued compared to its fair value and its price relative to the market?

44.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 532842 (₹107) is trading below our estimate of fair value (₹191.02)

Significantly Below Fair Value: 532842 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 532842 is good value based on its PE Ratio (8.3x) compared to the Chemicals industry average (10.7x).

PE vs Market: 532842 is good value based on its PE Ratio (8.3x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 532842's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 532842 is good value based on its PB Ratio (0.6x) compared to the IN Chemicals industry average (1.1x).


Next Steps

Future Growth

How is Sree Rayalaseema Hi-Strength Hypo forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

18.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 532842's forecast earnings growth (18.7% per year) is above the savings rate (7.6%).

Earnings vs Market: 532842's earnings (18.7% per year) are forecast to grow faster than the Indian market (18% per year).

High Growth Earnings: 532842's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 532842's revenue is forecast to grow faster than the Indian market.

High Growth Revenue: Insufficient data to determine if 532842's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 532842's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Sree Rayalaseema Hi-Strength Hypo performed over the past 5 years?

16.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 532842's earnings have grown by 16.8% per year over the past 5 years.

Accelerating Growth: 532842's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 532842 had negative earnings growth (-40.4%) over the past year, making it difficult to compare to the Chemicals industry average (10.4%).


Return on Equity

High ROE: 532842's Return on Equity (6.9%) is considered low.


Return on Assets

ROA vs Industry: 532842's Return on Assets is below or equal to the Chemicals industry average last year.


Return on Capital Employed

ROCE Improving: 532842 has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Sree Rayalaseema Hi-Strength Hypo's financial position?


Financial Position Analysis

Short Term Liabilities: 532842's short term assets (₹1.9B) exceeds its short term liabilities (₹1.2B)

Long Term Liabilities: 532842's short term assets (1.9B) exceeds its long term liabilities (264.4M)


Debt to Equity History and Analysis

Debt Level: 532842's debt to equity ratio (14%) is considered satisfactory

Reducing Debt: 532842's debt to equity ratio has reduced from 58.7% to 14% over the past 5 years.

Debt Coverage: 532842's debt is well covered by operating cash flow (131.2%).

Interest Coverage: 532842's interest payments on its debt are well covered by EBIT (4.8x coverage).


Balance Sheet

Inventory Level: 532842 has a high level of physical assets or inventory.

Debt Coverage by Assets: 532842's debt is covered by short term assets (assets are 4.271380x debt).


Next Steps

Dividend

What is Sree Rayalaseema Hi-Strength Hypo's current dividend yield, its reliability and sustainability?

1.87%

Current Dividend Yield


Dividend Yield vs Market

company1.9%marketbottom25%0.6%markettop25%2.4%industryaverage0.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 532842's dividend (1.87%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: 532842's dividend (1.87%) is low compared to the top 25% of dividend payers in the Indian market (2.42%).

Stable Dividend: 532842 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 532842's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (15.5%), 532842's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Sree Rayalaseema Hi-Strength Hypo's salary, the management and board of directors tenure and is there insider trading?

5.2yrs

Average board tenure


CEO

Tumbalam Bharath (43yo)

0.4yrs

Tenure

₹23,290,322

Compensation

Mr. Tumbalam Gooty Bharath, B.Com., MBA (UK) serves as the Chairman of Sree Rayalaseema Hi-Strength Hypo Limited and TGV Projects and Investments Pvt. Ltd. Mr. Bharath served as Managing Director of SRHHL  ...


CEO Compensation Analysis

Compensation vs. Market: Tumbalam has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Indian market.

Compensation vs Earnings: Tumbalam's compensation has been consistent with company performance over the past year.


Board Age and Tenure

5.2yrs

Average Tenure

55yo

Average Age

Experienced Board: 532842's board of directors are considered experienced (5.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Tumbalam Bharath (43yo)

    Chairman & MD

    • Tenure: 0.4yrs
    • Compensation: ₹23.29m
  • Vobugari Surekha (49yo)

    GM, Compliance Officer & Company Secretary

    • Tenure: 0yrs
    • Compensation: ₹739.00k
  • Shaik Ahmed

    CFO & GM of Finance and Accounting

    • Tenure: 4.1yrs
    • Compensation: ₹851.00k

Board Members

  • Tumbalam Bharath (43yo)

    Chairman & MD

    • Tenure: 0.4yrs
    • Compensation: ₹23.29m
  • Duggi Surakkagar Leela (55yo)

    Independent Director

    • Tenure: 5.2yrs
    • Compensation: ₹65.50k
  • Krishnamoorthy Naik (85yo)

    Non-Executive Director

    • Tenure: 5.2yrs
    • Compensation: ₹35.00k
  • P. Gowd (66yo)

    Independent Director

    • Tenure: 5.2yrs
    • Compensation: ₹65.50k
  • Agadi Kailashnath (36yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: ₹65.50k

Company Information

Sree Rayalaseema Hi-Strength Hypo Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sree Rayalaseema Hi-Strength Hypo Limited
  • Ticker: 532842
  • Exchange: BSE
  • Founded: 2005
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: ₹1.837b
  • Shares outstanding: 17.16m
  • Website: https://www.srhhl.com

Number of Employees


Location

  • Sree Rayalaseema Hi-Strength Hypo Limited
  • 216, K.J.S.Complex
  • Bhagya Nagar
  • Kurnool
  • Andhra Pradesh
  • 518004
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532842BSE (Mumbai Stock Exchange)YesEquity SharesININRMay 2007
SRHHYPOLTDNSEI (National Stock Exchange of India)YesEquity SharesININRMay 2007

Biography

Sree Rayalaseema Hi-Strength Hypo Limited manufactures and sells inorganic chemicals in India. The company operates in two segments, Chemical Manufacturing and Power generation. It offers sulphuric, chloro ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 12:44
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.