Disclaimer: This Blog owner & creator is not a research analyst and expresing opinion only as an Investor in Indian equities with his vast experience.He is not responsible for any loss arising out of any information, post or opinion appearing on this blog. Investors are advised to consult financial consultant before acting on any such information.Any query mail me firstname.lastname@example.org
Thursday, September 22, 2016
SREE RAYALSEEMA HI - STRENGTH HYPO LTD :- POTENTIAL MULTIBAGGER
Nifty nearing 9000 mark, investors earn lots of money in last 7 months, I think retail investor not focus on index, so many mid and small cap stocks still trading reasonable value so retail investor more concentrate this types of stocks rather then index. Now today we are discussing one stock from chemical sector for medium to long term investments , chemical sector stocks are favourite in stock market , but lots of good fundamental stocks are still trading very low valuation
SREE RAYALSEEMA HI - STRENGTH HYPO LTD
Sree rayalaseema Hi- Strength Hypo Ltd(SRHH ) , a part of TGV Group is the only INDIAN MANUFACTURER of CALCIUM HYPOCHLORITE and one of the very FEW IN THE WORLD.Company has been know for decades of deducated reaserch and development in WATER TREATMENT and PURIFICATION.
SRHH's principal business is manufacturing and sale of industrial chemicals and genaration and distribution of power. The company has presence in both domestic as well as international markets.SRHH's productsbasket includes CALCIUM HYPOCHLORITE, STABLE BLEACHING POWDER, ALUMINUM SULPHATE. MONOCHLORO ACETIC ACID ,SULPHURIC ACID , OLEUM AND HYDROGEN GAS .
SRHH is engaged not only in the production of inorganic chemicals but in generation of power through wind and thermal sources as well.Company run in a 10MW Thermal power plant in Gondiparla which is situated in kurnool distric in Andhra Pradesh while its wind power units are situated in the state of Tamil Nadu. Comapny's majority of revenues coming from chemicals (84 % ) balance 16 % from power business.
AQUAFIT is one of the major product from SRHH, about this product
Water is life's matter and Matrix, mother
and medium. It touches billions of lives daily, quenching their every
need- from the very act of living to cleansing, from production to
recreation. Aquafit ,a high grade Calcium Hypochlorite has very wide
application in swimming pools and drinking water treatments. It
is one of the few in the world and the only one in India, to
manufacturer and export Calcium Hypochlorite of 65% - 70 % Min Chlorine
Promoter holding 55.31 % stake , company posted 95 cr top line and 3 cr bottom line ( this quarter 3 cr depreciation ) with an EPS of 2.1 . Book value of this company stands 130. Compay projected sales in FY 17 around 425 cr and expected net profit 23 cr , EPS around expecting 17, stock is now trading just 7 PE forward earnings. Water treatment segment is always growing sector this peer group company's trading around 18 PE. SRHH is very safe investment bet for investor this one stock is low risk high return types of stock in future, 425 cr top line and 23 cr bottom line ( fy 17 projected ) company's market cap is just 170 cr !!!. Investor can buy this stock @ current price and buy more in correction (if any ) and hold their portfolio ,I believe this stock may give 5 fold return in long term. Stock trading both NSE and BSE @ 119 level.
Before buying any stock take advice from certified person.
Disclosure :- I am holding this comapny shares in my portfolio.