Sree Rayalaseema Hi-Strength Hypo Ltd (SRHHYPOLTD) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Andhra Sugars

Indo Borax & Ch.

TGV Sraac

Transpek Inds.

POCL Enterprises

I G Petrochems

Sr.Rayala.Hypo

Tuticorin Alkali

Chemfab Alka.

Amines & Plast.

Sadhana Nitro

Why is Sree Rayalaseema Hi-Strength Hypo Ltd ?

Poor long term growth as Net Sales has grown by an annual rate of -3.27% over the last 5 years

Flat results in Dec 25

ROCE(HY) Lowest at 12.80%
DEBTORS TURNOVER RATIO(HY) Lowest at 5.51 times
NET SALES(Q) At Rs 141.17 cr has Fallen at -14.6% (vs previous 4Q average)

Despite the size of the company, domestic mutual funds hold only 0.02% of the company

Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -16.30% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Commodity Chemicals)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Sr.Rayala.Hypo for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sr.Rayala.Hypo

-16.3%

-0.42

38.54%

Sensex

-2.38%

-0.19

12.70%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-3.27%

EBIT Growth (5y)

2.34%

EBIT to Interest (avg)

47.44

Debt to EBITDA (avg)

0.21

Net Debt to Equity (avg)

-0.40

Sales to Capital Employed (avg)

1.50

Tax Ratio

26.64%

Dividend Payout Ratio

5.72%

Pledged Shares

Institutional Holding

0.11%

ROCE (avg)

22.61%

ROE (avg)

13.39%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.74

EV to EBIT

3.99

EV to EBITDA

3.67

EV to Capital Employed

0.56

EV to Sales

0.51

PEG Ratio

0.62

Dividend Yield

0.66%

ROCE (Latest)

14.05%

ROE (Latest)

9.46%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 413.48 cr

PAT(Q)

Highest at Rs 26.01 cr.

EPS(Q)

Highest at Rs 13.84

-7What is not working for the Company

ROCE(HY)

Lowest at 12.80%

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.51 times

NET SALES(Q)

At Rs 141.17 cr has Fallen at -14.6% (vs previous 4Q average

NON-OPERATING INCOME(Q)

is 51.72 % of Profit Before Tax (PBT

Loading Valuation Snapshot...

Here's what is working for Sr.Rayala.Hypo

Profit After Tax (PAT) - Quarterly

Highest at Rs 26.01 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 13.84

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 413.48 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Sr.Rayala.Hypo

Net Sales - Quarterly

At Rs 141.17 cr has Fallen at -14.6% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 165.40 Cr

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Debtors Turnover Ratio- Half Yearly

Lowest at 5.51 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio

Non Operating Income - Quarterly

is 51.72 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT

Non Operating Income - Quarterly

Highest at Rs 19.40 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income