Sree Rayalaseema Hi-Strength Hypo Limited (SRHHYPOLTD) AI Stock Analysis

• Market Cap: ₹7.66B
• Dividend Yield: 0.56%
• Average Volume (3M): 1.02K
• Price to Earnings (P/E): 8.6
• Beta (1Y): 1.48
• Revenue Growth: -7.93%
• EPS Growth: 11.44%
• Country: IN
• Employees: 498
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 13.57
• Shares Outstanding: 17,164,820
• 10 Day Avg. Volume: 725
• 30 Day Avg. Volume: 1,017
• PEG Ratio: 0.71
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 1.36
• P/FCF Ratio: 9.75
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: ₹475.00 ▼(-8.33% Downside)

The stock score is primarily influenced by strong financial performance, characterized by profitability and low leverage. However, technical analysis indicates bearish momentum, which is a significant risk factor. Valuation is reasonable, but the low dividend yield limits income potential. The absence of earnings call data and notable corporate events means these factors do not influence the score.

Positive Factors

Diverse end-market demand

Products serve essential, non-discretionary industries (water treatment, sanitation, textiles, pulp & paper). That end-market diversity supports steady structural demand and reduces reliance on a single sector, improving revenue resilience over a multi-quarter horizon.

Conservative balance sheet

Low leverage and a high equity ratio provide financial flexibility to fund maintenance capex, absorb cyclical downturns, and pursue modest growth without stress on liquidity. This reduces default risk and supports long-term operational stability.

Stable margins and profitability

Relatively stable gross and EBIT margins, alongside a robust net margin, indicate effective cost controls and pricing discipline. Margin durability supports cash generation and the ability to fund operations and investments even when top-line growth is uneven.

Negative Factors

Declining revenue trend

A near-8% revenue decline signals weakening sales momentum; persistent top-line contraction constrains scalability and can erode operating leverage. Even with healthy margins, continued revenue decline undermines long-term earnings growth and strategic optionality.

Volatile operating cash flow

Inconsistent operating cash flow creates uncertainty in funding working capital, sustaining dividends, or financing reinvestment. Reliance on variable cash conversion raises execution risk and may force trade-offs during adverse cycles.

Input cost and cyclicality exposure

The business is materially exposed to volatile power and raw material costs and to utilization swings in chlor-alkali commodities. These structural cost and cycle risks can compress margins and earnings unpredictably, limiting long-term margin visibility.

Sree Rayalaseema Hi-Strength Hypo Limited Business Overview & Revenue Model

Company Description

Sree Rayalaseema Hi-Strength Hypo Limited engages in the production and sale of chemicals in India. The company operates through two segments, Chemical Manufacturing and Power generation. It provides sulphuric, chlorosulphonic, hydrochloric, and monochloro acetic acids; chloramine, purichlor, oleum, sodium dichloroisocyanurate, hydrogen gases; and aluminum sulphate, stable bleaching powder, sodium hydride, sodium methoxide powder, sodium methoxide solution, calcium hypochlorite, and water treatment chemicals. The company is involved in the generation and distribution of power through thermal, solar, and wind mills; and coal trading business. It also exports its products. Sree Rayalaseema Hi-Strength Hypo Limited was incorporated in 2005 and is based in Kurnool, India.

How the Company Makes Money

SRHHYPOLTD generates revenue primarily through the sale of its chemical products, including hypo chlorite, which are essential for disinfection and bleaching processes in various industries. The company benefits from multiple key revenue streams, including direct sales to industrial clients, long-term supply contracts, and partnerships with distributors. Additionally, SRHHYPOLTD may engage in export activities, expanding its market reach and enhancing its revenue potential. Factors contributing to its earnings include the demand for chemical products in growing sectors such as water treatment and healthcare, as well as the company's commitment to maintaining high production standards and customer satisfaction.

Sree Rayalaseema Hi-Strength Hypo Limited Financial Statement Overview

Summary

Overall, Sree Rayalaseema Hi-Strength Hypo Limited demonstrates financial stability with strong profitability and effective equity utilization. The balance sheet highlights a conservative financial strategy with low leverage. Cash flow generation is solid but has shown some volatility in operating cash flows. The company should focus on stabilizing revenue growth to enhance future financial performance.

Income Statement

The income statement shows a mixed performance. Gross profit margin and EBIT margin have been relatively stable, indicating effective cost management. However, revenue growth has been inconsistent, showing a decline from 2024 to 2025. The net profit margin remains robust, supported by a significant net income relative to revenue.

Balance Sheet

The balance sheet is strong, with a low debt-to-equity ratio indicating conservative leverage. The equity ratio is high, reflecting a solid equity position and low dependency on external financing. Return on equity remains healthy, demonstrating effective use of shareholder funds to generate profit.

Cash Flow

Cash flow analysis reveals stable free cash flow generation, though operating cash flow has decreased. The free cash flow to net income ratio is strong, indicating efficient conversion of earnings into cash. However, the growth of operating cash flow has been inconsistent.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.49B	6.38B	8.62B	16.50B	12.63B	9.09B
Gross Profit	2.78B	2.39B	2.51B	3.44B	3.36B	2.77B
EBITDA	1.34B	1.28B	1.19B	2.15B	1.59B	1.36B
Net Income	912.65M	874.69M	789.70M	1.54B	1.03B	605.71M
Balance Sheet
Total Assets	0.00	10.71B	9.14B	9.23B	7.88B	5.19B
Cash, Cash Equivalents and Short-Term Investments	3.74B	3.74B	3.29B	2.42B	1.13B	98.35M
Total Debt	0.00	157.43M	129.21M	191.71M	283.63M	715.11M
Total Liabilities	-9.34B	1.36B	1.13B	1.72B	2.17B	1.31B
Stockholders Equity	9.34B	9.20B	8.01B	7.51B	5.70B	3.88B
Cash Flow
Free Cash Flow	0.00	892.96M	1.20B	1.33B	453.45M	501.22M
Operating Cash Flow	0.00	654.83M	1.40B	1.41B	597.50M	705.64M
Investing Cash Flow	0.00	-82.31M	-199.94M	-1.12B	-11.69M	-1.15B
Financing Cash Flow	0.00	-172.98M	-168.25M	-166.51M	-513.24M	101.58M

Sree Rayalaseema Hi-Strength Hypo Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 518.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SRHHYPOLTD, the sentiment is Negative. The current price of 518.15 is above the 20-day moving average (MA) of 471.68, above the 50-day MA of 496.51, and below the 200-day MA of 566.84, indicating a bearish trend. The MACD of -17.43 indicates Positive momentum. The RSI at 24.52 is Positive, neither overbought nor oversold. The STOCH value of 7.66 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SRHHYPOLTD.

Sree Rayalaseema Hi-Strength Hypo Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHREEPUSHK	68 Neutral	₹10.61B	14.81	―	0.52%	28.67%	50.12%
SRHHYPOLTD	63 Neutral	₹7.66B	8.58	―	0.56%	-7.93%	11.44%
INDOAMIN	63 Neutral	₹8.19B	11.63	―	0.38%	13.01%	32.44%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
KUANTUM	60 Neutral	₹7.41B	11.41	―	3.24%	-9.47%	-54.96%
TNPL	58 Neutral	₹9.22B	31.15	―	2.08%	4.65%	-127.24%
HERANBA	44 Neutral	₹8.77B	-18.47	―	0.39%	―	―