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

• Market Cap: ₹7.41B
• Dividend Yield: 0.56%
• Average Volume (3M): 1.02K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 1.39
• Revenue Growth: -7.93%
• EPS Growth: 11.44%
• Country: IN
• Employees: 498
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 13.84
• 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: ₹460.00 ▼(-11.22% Downside)
• Action: Reiterated Date: 11/15/25
• Date: Action: Reiterated 11/15/25

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

Conservative balance sheet and low leverage

A low debt-to-equity position and high equity ratio give the company durable financial flexibility: it can fund maintenance capex, absorb commodity cycles, and avoid forced refinancing during downturns. This supports long-term resilience and optionality for strategic investments.

Stable gross and EBIT margins with robust net profit

Sustained gross and EBIT margins indicate durable cost management and pricing power in core chlor-alkali and hypochlorite products. Robust net margins mean the company can generate shareholder returns and reinvest in operations even if revenue growth wobbles, underpinning long-term profitability.

Efficient conversion of earnings into free cash flow

Strong free-cash-flow conversion enhances the firm's ability to self-fund working capital, sustain capex and pay discretionary returns. Over a multi-quarter horizon this cash conversion supports strategic spending and reduces dependency on external financing during cyclical industry phases.

Negative Factors

Inconsistent and weakening revenue growth

An inconsistent and recently declining top line undermines visibility for earnings and investment planning. For a commodity-lean chemical business, weaker revenue growth constrains scale benefits, limits margin expansion potential, and increases reliance on price cycles to drive profits.

Volatility and decline in operating cash flow

Declining and volatile operating cash flow pressures liquidity and operational flexibility. Persistent OCF weakness can force trade-offs between capex, working capital and shareholder returns, reducing the company's ability to invest through downturns or capitalize on growth opportunities.

Limited income appeal due to low dividend yield

A very low dividend yield reduces steady income for investors and means returns rely more on uncertain earnings growth. Given inconsistent revenue and cash-flow volatility, the low yield weakens the firm's attractiveness to income-focused holders seeking predictable long-term cash returns.

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 makes money by manufacturing and selling industrial chemicals, with revenue largely driven by (1) sales of calcium hypochlorite and other hypochlorite/chlorination products used for disinfection and water treatment, and (2) sales of chlor-alkali derivatives (typically including caustic alkali, chlorine and related downstream products) supplied to industrial customers. The company generates earnings by converting raw materials, power, and process inputs into higher-value chemical outputs and selling them under supply contracts or spot orders to domestic and export customers; profitability is influenced by product mix, utilization of production capacity, input costs (notably power and key raw materials), and realized selling prices that can be cyclical in commodity chemicals. Specific details on major customer contracts, partnerships, and segment-wise revenue breakdown are null.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	6.62B	6.38B	8.62B	16.50B	12.63B	9.09B
Gross Profit	2.97B	2.39B	2.51B	3.44B	3.36B	2.77B
EBITDA	1.30B	1.28B	1.19B	2.15B	1.59B	1.36B
Net Income	892.58M	874.69M	789.70M	1.54B	1.03B	605.71M
Balance Sheet
Total Assets	11.66B	10.71B	9.14B	9.23B	7.88B	5.19B
Cash, Cash Equivalents and Short-Term Investments	4.13B	3.74B	3.29B	2.42B	1.13B	98.35M
Total Debt	141.74M	157.43M	129.21M	191.71M	283.63M	715.11M
Total Liabilities	1.47B	1.36B	1.13B	1.72B	2.17B	1.31B
Stockholders Equity	10.05B	9.20B	8.01B	7.51B	5.70B	3.88B
Cash Flow
Free Cash Flow	123.31M	892.96M	1.20B	1.33B	453.45M	501.22M
Operating Cash Flow	188.00M	654.83M	1.40B	1.41B	597.50M	705.64M
Investing Cash Flow	245.05M	-82.31M	-199.94M	-1.12B	-11.69M	-1.15B
Financing Cash Flow	-35.12M	-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: Neutral
• STOCH: Neutral

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 460.11, above the 50-day MA of 470.17, and below the 200-day MA of 556.72, indicating a bearish trend. The MACD of -12.09 indicates Positive momentum. The RSI at 37.77 is Neutral, neither overbought nor oversold. The STOCH value of 24.83 is Neutral, 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	₹9.59B	17.66	―	0.52%	28.67%	50.12%
SRHHYPOLTD	63 Neutral	₹7.41B	9.34	―	0.56%	-7.93%	11.44%
INDOAMIN	63 Neutral	₹6.76B	19.71	―	0.38%	13.01%	32.44%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
KUANTUM	60 Neutral	₹6.80B	20.52	―	3.24%	-9.47%	-54.96%
TNPL	58 Neutral	₹9.27B	36.69	―	2.08%	4.65%	-127.24%
HERANBA	49 Neutral	₹6.88B	-10.64	―	0.39%	―	―