Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post
Last Updated on: 24 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Sree Rayalaseema Hi-Strength Hypo Ltd

About the Company - Sree Rayalaseema Hi-Strength Hypo Ltd

Sree Rayalaseema Hi-Strength Hypo Ltd. is a Public Limited Listed company incorporated on 28/03/2005 and has its registered office in the State of Andhra Pradesh, India. Company’s Corporate Identification Number(CIN) is L24110AP2005PLC045726 and registration number is 045726. Currently Company is involved in the business activities of Manufacture of organic and inorganic chemical compounds. Company’s Total Operating Revenue is Rs. 1267.27 Cr. and Equity Capital is Rs. 17.16 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Chemicals - Inorganic - OthersGondiparla Kurnool Andhra Pradesh 518004srhypo@tgvmail.net
http://www.tgvgroup.com
Management
NamePosition Held
Mr. Tumbalam G BharathChairman & Managing Director
Mr. H Gurunath ReddyNon Executive Director
Mr. A KailashnathIndependent Director
Mr. P Ramachandra GowdIndependent Director
Mrs. R TriveniIndependent Woman Director
Mr. Satyam GadwalNon Executive Director

Sree Rayalaseema Hi-Strength Hypo Ltd. Share Price Update

Share PriceValue
Today₹540.95
Previous Day₹548.90

Basic Stock Data of Sree Rayalaseema Hi-Strength Hypo Ltd

Market Cap 932 Cr.
Current Price 543
High / Low815/375
Stock P/E6.95
Book Value 479
Dividend Yield0.75 %
ROCE26.4 %
ROE21.6 %
Face Value 10.0

Data Source: screener.in

Competitors of Sree Rayalaseema Hi-Strength Hypo Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Vishnu Chemicals Ltd 2,048 Cr. 312386/24518.8 100.00.13 %30.1 %38.7 % 2.00
A-1 Acid Ltd 411 Cr. 357440/295289 40.70.42 %9.79 %7.63 % 10.0
Industry Average206.5 Cr334.5153.970.350.28%19.95%23.17%6

Sree Rayalaseema Hi-Strength Hypo Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales203207306287271295414570344301435261226
Expenses168171280260239245372517310274371226199
Operating Profit36362627325143533426643526
OPM %17%18%9%9%12%17%10%9%10%9%15%13%12%
Other Income114210703112012
Interest2101150010111
Depreciation1313135555455533
Profit before tax22231724284144493132793325
Tax %26%26%22%24%26%35%15%26%24%26%9%26%27%
Net Profit16171418212737362424712418
EPS in Rs9.4210.047.9310.6012.0415.4921.7520.9413.7913.7241.4514.1710.78

Sree Rayalaseema Hi-Strength Hypo Ltd Quarterly Chart

Sree Rayalaseema Hi-Strength Hypo Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales2432992953923623665467026899111,2671,6501,222
Expenses1902582623513183175006045877811,1191,4701,070
Operating Profit5241334144504698102130149180152
OPM %21%14%11%10%12%14%8%14%15%14%12%11%12%
Other Income-3-4992-219547113434
Interest10101614118916105352
Depreciation12131510102519455051191915
Profit before tax28131226261537424581137190169
Tax %34%27%36%25%27%-27%1%52%17%25%25%19%
Net Profit189719191837203861103154138
EPS in Rs15.836.535.0613.1612.7211.8622.4511.9022.0935.3059.8889.9080.12
Dividend Payout %0%0%0%11%12%13%9%17%11%8%6%4%

Sree Rayalaseema Hi-Strength Hypo Ltd Profit & Loss Yearly Chart

Sree Rayalaseema Hi-Strength Hypo Ltd Growth

Compounded Sales Growth
10 Years:19%
5 Years:25%
3 Years:34%
TTM:-30%
Compounded Profit Growth
10 Years:26%
5 Years:42%
3 Years:55%
TTM:12%
Stock Price CAGR
10 Years:42%
5 Years:32%
3 Years:32%
1 Year:24%
Return on Equity
10 Years:14%
5 Years:17%
3 Years:21%
Last Year:22%

Sree Rayalaseema Hi-Strength Hypo Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital14141515151516171717171717
Reserves114125135157173222300308294371553734805
Borrowings99117888785557852577228168
Other Liabilities841021309984606693765918912662
Total Liabilities311358367358357352460470445519787893893
Fixed Assets127155200194195182194194161134130105101
CWIP335205280030000
Investments223132232343105651850164214246
Other Assets128120135136137118161210262334494574547
Total Assets311358367358357352460470445519787893893

Sree Rayalaseema Hi-Strength Hypo Ltd Reserves and Borrowings Chart

Sree Rayalaseema Hi-Strength Hypo Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 154720361547560997160134
Cash from Investing Activity -84-68-9-5-3-19-27-24-38-115-1-99
Cash from Financing Activity 7021-9-32-12-1916-37-2210-52-23
Net Cash Flow0-02-1-08-6-140-35712

Sree Rayalaseema Hi-Strength Hypo Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days443533335430384643393833
Inventory Days695067423755343436276239
Days Payable70869779396621382483322
Cash Conversion Cycle43-03-45119514155576750
Working Capital Days252315124842485246485347
ROCE %22%13%11%13%14%9%9%14%15%21%26%26%

Sree Rayalaseema Hi-Strength Hypo Ltd Financial Efficiency Indicators Chart

Sree Rayalaseema Hi-Strength Hypo Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters62.05%62.05%62.09%62.09%62.09%62.09%62.09%62.09%62.09%62.09%62.09%61.84%
FIIs0.02%0.02%0.00%0.00%0.20%0.14%0.71%0.74%0.59%0.60%0.64%0.65%
DIIs0.04%0.04%0.04%0.04%0.04%0.04%0.04%0.04%0.04%0.04%0.04%0.04%
Public37.89%37.89%37.87%37.86%37.67%37.72%37.16%37.12%37.28%37.27%37.23%37.48%
No. of Shareholders58,03658,22359,55359,52259,05859,28362,80264,52265,04547,18148,57648,539

Sree Rayalaseema Hi-Strength Hypo Ltd Shareholding Pattern Chart

No. of Sree Rayalaseema Hi-Strength Hypo Ltd Shareholders

This stock is not held by any mutual fund

Sree Rayalaseema Hi-Strength Hypo Ltd ROCE Trend

Sree Rayalaseema Hi-Strength Hypo Ltd EPS Trend

Sree Rayalaseema Hi-Strength Hypo Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 17
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)89.9759.8835.2922.085.93
Diluted EPS (Rs.)89.9759.8835.2922.085.93
Cash EPS (Rs.)101.1471.0864.7751.3712.97
Book Value[Excl.RevalReserv]/Share (Rs.)437.58332.26226.03181.51133.52
Book Value[Incl.RevalReserv]/Share (Rs.)437.58332.26226.03181.51133.52
Revenue From Operations / Share (Rs.)961.34738.30530.63401.46111.63
PBDIT / Share (Rs.)124.9792.8779.7761.6914.60
PBIT / Share (Rs.)113.7081.6750.2932.407.57
PBT / Share (Rs.)110.9379.8047.1026.485.87
Net Profit / Share (Rs.)89.8759.8835.2922.085.93
NP After MI And SOA / Share (Rs.)89.8759.8835.2922.085.93
PBDIT Margin (%)12.9912.5715.0315.3613.07
PBIT Margin (%)11.8211.069.478.066.77
PBT Margin (%)11.5310.808.876.595.26
Net Profit Margin (%)9.348.116.655.505.31
NP After MI And SOA Margin (%)9.348.116.655.505.31
Return on Networth / Equity (%)20.5418.0215.6112.164.44
Return on Capital Employeed (%)25.5224.0521.5516.864.33
Return On Assets (%)17.1813.0411.678.522.56
Long Term Debt / Equity (X)0.000.000.000.000.13
Total Debt / Equity (X)0.010.030.150.120.37
Asset Turnover Ratio (%)1.961.941.890.001.01
Current Ratio (X)4.172.352.652.151.38
Quick Ratio (X)3.221.652.321.831.23
Inventory Turnover Ratio (X)4.245.399.030.008.06
Dividend Payout Ratio (NP) (%)3.895.017.0810.910.00
Dividend Payout Ratio (CP) (%)3.464.223.864.690.00
Earning Retention Ratio (%)96.1194.9992.9289.090.00
Cash Earning Retention Ratio (%)96.5495.7896.1495.310.00
Interest Coverage Ratio (X)45.1649.6925.0110.428.61
Interest Coverage Ratio (Post Tax) (X)33.4833.0412.064.734.50
Enterprise Value (Cr.)489.04718.64328.1977.14248.11
EV / Net Operating Revenue (X)0.290.560.360.111.51
EV / EBITDA (X)2.284.512.400.7211.55
MarketCap / Net Operating Revenue (X)0.420.640.440.171.11
Retention Ratios (%)96.1094.9892.9189.080.00
Price / BV (X)0.941.431.050.390.92
Price / Net Operating Revenue (X)0.420.640.440.171.11
EarningsYield0.210.120.140.300.04

Sree Rayalaseema Hi-Strength Hypo Ltd Profitability Ratios (%)

Sree Rayalaseema Hi-Strength Hypo Ltd Liquidity Ratios

Sree Rayalaseema Hi-Strength Hypo Ltd Liquidity Ratios (%)

Sree Rayalaseema Hi-Strength Hypo Ltd Interest Coverage Ratios (X)

Sree Rayalaseema Hi-Strength Hypo Ltd Valuation Ratios

Fair Value / Intrinsic Value of Sree Rayalaseema Hi-Strength Hypo Ltd

Fair Value: ₹724.47

The stock is undervalued by 33.42% compared to the current price ₹543

*Investments are subject to market risks

Strength and Weakness of Sree Rayalaseema Hi-Strength Hypo Ltd

StrengthWeakness
  1. The stock has a high average ROCE of 16.08%, which is a positive sign.
  2. The company has higher reserves (330.08 cr) compared to borrowings (64.77 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (369.85 cr) and profit (63.15 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 57.13 and average Dividend Yield of 9.44%.
  2. The stock has a high average Working Capital Days of 38.25, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 36.08, which may not be favorable.

Should I Buy Sree Rayalaseema Hi-Strength Hypo Ltd Share Now?

  • Based on the analysis of various financial indicators, it may be worth considering investment in Sree Rayalaseema Hi-Strength Hypo Ltd:
    1. Net Profit Margin: 9.34% (Higher values are generally favorable)
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 25.52% (Industry Average ROCE: 19.95%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. Interest Coverage Ratio (Post Tax): 33.48 (Higher values, preferably > 2, are recommended)
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    4. Quick Ratio: 3.22 (Higher values, preferably > 1, are recommended)
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    5. ✓ Stock P/E: 6.95 (Industry average Stock P/E: 157.25)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    6. ✓ Total Debt / Equity: 0.01 (Lower values, preferably < 1, are preferred)
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    While these metrics suggest potential opportunity, it's essential to conduct thorough research or seek advice from financial experts before making any investment decisions.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Sree Rayalaseema Hi-Strength Hypo Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE