NSEI:SRHHYPOLTD

Stock Analysis Report

Sree Rayalaseema Hi-Strength Hypo

Executive Summary

Sree Rayalaseema Hi-Strength Hypo Limited engages in the manufacture and sale of chemicals in India.

Rewards

Trading at 72.2% below its fair value

Risk Analysis

Unstable dividend track record

Profit margins (2.7%) are lower than last year (7.7%)

Does not have a meaningful market cap (₹2B)



Snowflake Analysis

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

Stable Share Price: SRHHYPOLTD has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.1%

SRHHYPOLTD

-0.5%

IN Chemicals

-0.8%

IN Market


1 Year Return

-16.9%

SRHHYPOLTD

27.2%

IN Chemicals

11.1%

IN Market

Return vs Industry: SRHHYPOLTD underperformed the Indian Chemicals industry which returned 27.2% over the past year.

Return vs Market: SRHHYPOLTD underperformed the Indian Market which returned 11.1% over the past year.


Shareholder returns

SRHHYPOLTDIndustryMarket
7 Day1.1%-0.5%-0.8%
30 Day-9.1%2.3%-2.3%
90 Day14.5%11.3%2.1%
1 Year-15.3%-16.9%30.1%27.2%13.1%11.1%
3 Year-4.0%-7.9%55.1%48.9%22.9%16.2%
5 Year133.4%115.1%118.9%103.3%34.9%22.6%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SRHHYPOLTD (₹114.45) is trading below our estimate of fair value (₹410.95)

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


Price To Earnings Ratio

PE vs Industry: SRHHYPOLTD is good value based on its PE Ratio (10.1x) compared to the Chemicals industry average (11.1x).

PE vs Market: SRHHYPOLTD is good value based on its PE Ratio (10.1x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SRHHYPOLTD 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?

16.4%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Sree Rayalaseema Hi-Strength Hypo has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

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

10.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SRHHYPOLTD has high quality earnings.

Growing Profit Margin: SRHHYPOLTD's current net profit margins (2.7%) are lower than last year (7.7%).


Past Earnings Growth Analysis

Earnings Trend: SRHHYPOLTD's earnings have grown by 10% per year over the past 5 years.

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

Earnings vs Industry: SRHHYPOLTD had negative earnings growth (-63.7%) over the past year, making it difficult to compare to the Chemicals industry average (11.6%).


Return on Equity

High ROE: SRHHYPOLTD's Return on Equity (6.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: SRHHYPOLTD's short term assets (₹2.1B) exceed its short term liabilities (₹960.7M).

Long Term Liabilities: SRHHYPOLTD's short term assets (₹2.1B) exceed its long term liabilities (₹312.2M).


Debt to Equity History and Analysis

Debt Level: SRHHYPOLTD's debt to equity ratio (10%) is considered satisfactory.

Reducing Debt: SRHHYPOLTD's debt to equity ratio has reduced from 49.3% to 10% over the past 5 years.

Debt Coverage: SRHHYPOLTD's debt is well covered by operating cash flow (246.5%).

Interest Coverage: SRHHYPOLTD's interest payments on its debt are well covered by EBIT (9.3x coverage).


Balance Sheet

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

Debt Coverage by Assets: SRHHYPOLTD's debt is covered by short term assets (assets are 6.5x debt).


Next Steps

Dividend

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

1.77%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%0.6%markettop25%2.5%industryaverage0.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: SRHHYPOLTD's dividend (1.77%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: SRHHYPOLTD's dividend (1.77%) is low compared to the top 25% of dividend payers in the Indian market (2.55%).


Stability and Growth of Payments

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

Growing Dividend: SRHHYPOLTD's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (17.9%), SRHHYPOLTD'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

How experienced are the management team and are they aligned to shareholders interests?

5.5yrs

Average board tenure


CEO

Tumbalam Bharath (43yo)

0.8yrs

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's total compensation ($USD326.41K) is above average for companies of similar size in the Indian market ($USD50.25K).

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


Board Members

NamePositionTenureCompensationOwnership
Tumbalam Bharath
Chairman & MD0.8yrs₹23.29m7.88% 161.6m
Duggi Surakkagar Leela
Independent Director5.5yrs₹65.50k0.00034% 7.0k
Krishnamoorthy Naik
Non-Executive Director5.5yrs₹35.00kno data
P. Gowd
Independent Director5.5yrs₹65.50kno data
Agadi Kailashnath
Independent Director3.8yrs₹65.50kno data

5.5yrs

Average Tenure

55yo

Average Age

Experienced Board: SRHHYPOLTD's board of directors are considered experienced (5.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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: SRHHYPOLTD
  • Exchange: NSEI
  • Founded: 2005
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: ₹2.050b
  • 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 engages in the manufacture and sale of chemicals in India. The company operates in two segments, Chemical Manufacturing and Power generation. It offers chloramine, purichlor, oleum, sodium dichloroisocyanurate, hydrogen gas, aluminum sulphate, stable bleaching powder, sodium hydride, sodium methoxide powder, sodium methoxide solution, calcium hypochlorite, and water treatment chemicals; and sulphuric, chloro sulphonic, hydrochloric, and monochloro acetic acids. The company is also involved in the generation of power through thermal, solar, and wind mills; and coal trading business. It also exports its products. The company was incorporated in 2005 and is based in Kurnool, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 12:58
End of Day Share Price2020/02/18 00:00
Earnings2019/12/31
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.