Thursday, September 22, 2016

SREE RAYALSEEMA HI - STRENGTH HYPO LTD :- POTENTIAL MULTIBAGGER

Dear friends,



   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 content.

 

  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.

 


  

 




Hi


9 comments:

  1. looking good on charts also.... thank you for sharing info

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  2. Great stock sir.. your views on Vikas Ecotech ??? Thank you

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  3. wow sir thanks for sharing this value stock.

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  4. Dear VALUEABLEGEM,
    Of late I am viewing your blog,some interesting stock ideas
    Keep it up.

    ReplyDelete
  5. What should be right price to enter this stock and how much return should we expect?

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  6. What is the reason for the lack of topline growth in the last few years you think sir??? Thank you

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  7. nice and intersting post. thanks
    check out my blog  currency tips

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  8. This comment has been removed by the author.

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  9. Great Result posted by SREE RAYALSEEMA .. However Is it the only manufacturer of Calcium Hypo Chloride?? According to this website there are lots of companies selling the product.

    http://dir.indiamart.com/impcat/calcium-hypochlorite.html

    Kindly check maam.. Thank you..

    ReplyDelete