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

Indo Borax & Ch.

Andhra Sugars

I G Petrochems

TGV Sraac

Amines & Plast.

Tuticorin Alkali

Sr.Rayala.Hypo

Blue Pearl Agri

Chemfab Alka.

Sadhana Nitro

OCCL

Why is Sree Rayalaseema Hi-Strength Hypo Ltd ?

Poor long term growth as Net Sales has grown by an annual rate of -6.04% and Operating profit at -0.43% over the last 5 years

Negative results in Mar 26

PBDIT(Q) Lowest at Rs 13.30 cr.
OPERATING PROFIT TO NET SALES (Q) Lowest at 8.15%
PBT LESS OI(Q) Lowest at Rs 11.07 cr.

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

Underperformed the market in the last 1 year

Even though the market (BSE500) generated negative returns of -2.24% in the last 1 year, its fall in the stock was much higher with a return of -25.35%

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

-25.35%

-0.75

33.96%

Sensex

-7.55%

-0.58

13.06%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-6.04%

EBIT Growth (5y)

-0.43%

EBIT to Interest (avg)

46.54

Debt to EBITDA (avg)

0.17

Net Debt to Equity (avg)

-0.44

Sales to Capital Employed (avg)

1.37

Tax Ratio

25.89%

Dividend Payout Ratio

5.72%

Pledged Shares

Institutional Holding

0.11%

ROCE (avg)

21.56%

ROE (avg)

13.85%

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

0.89

EV to EBIT

5.58

EV to EBITDA

5.11

EV to Capital Employed

0.80

EV to Sales

0.65

PEG Ratio

1.03

Dividend Yield

0.57%

ROCE (Latest)

14.34%

ROE (Latest)

10.06%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

1What is working for the Company

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 438.80 cr

-9What is not working for the Company

PBDIT(Q)

Lowest at Rs 13.30 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 8.15%

PBT LESS OI(Q)

Lowest at Rs 11.07 cr.

NON-OPERATING INCOME(Q)

is 61.79 % of Profit Before Tax (PBT

EPS(Q)

Lowest at Rs 11.69

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

Cash and Cash Equivalents - Half Yearly

Highest at Rs 438.80 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

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 11.07 cr has Fallen at -44.9% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 20.08 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 13.30 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at 8.15%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 11.07 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Non Operating Income - Quarterly

is 61.79 % 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

Earnings per Share (EPS) - Quarterly

Lowest at Rs 11.69

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)