Sree Rayalaseema Hi-Strength Hypo Ltd was incorporated in March 2005. The Company is a leading producer of Calcium Hypochlorite, Stable Bleaching Powder, Sulphuric Acid, and other industrial chemicals. Notably, Sree Rayalaseema Hi-Strength Hypo is the only Indian manufacturer of Calcium Hypochlorite and one of the very few globally, establishing itself as a prominent player in the specialty chemicals sector. Its registered office is located in Gondiparla, Kurnool, Andhra Pradesh, 518004.
The company employs a state-of-the-art sodium process technology, developed through in-house R&D efforts, enabling the manufacture of products with a chlorine content of 65% to 70%. The business of manufacturing industrial chemicals was vested in the Company effective April 1, 2005, through a Scheme of Arrangement in June 2006, with wind energy generation added in 2008.
Sree Rayalaseema Hi-Strength Hypo Limited produces and sells industrial chemicals in India, operating through three distinct segments: Chemical Manufacturing, Power Generation, and Trading in Coal.
The company's comprehensive product portfolio includes:
- Sulphuric, Chlorosulphonic, Hydrochloric, and Monochloro Acetic Acids
- Chloramine, Purichlor, Oleum, Sodium Dichloroisocyanurate, and Hydrogen Gas
- Aluminum Sulphate, Stable Bleaching Powder, Sodium Hydride, Sodium Methoxide powder and solution, and Water Treatment Chemicals.
SRHHL manufactures specialty chemicals such as calcium hypochlorite, stable bleaching powder, and hydrogen peroxide, supplying essential chemicals to industries like water treatment, textiles, and agriculture in both domestic and global markets. The company is also involved in the generation and distribution of power through thermal, wind, and solar plants, and engages in coal trading. The power generation segment was further expanded with the commissioning of thermal power generation during FY 2013-14.
As of the latest available data (April 4, 2025, 03:59 PM), the market capitalization of Sree Rayalaseema Hi-Strength Hypo Ltd stood at ₹853.01 Crore. The company has demonstrated consistent financial performance, despite some recent challenges.
For the most recent quarter (Dec '24):
- Revenue: ₹151.03 Crore (compared to ₹179.37 Crore in Sep '24)
- EBITDA: ₹32.36 Crore (compared to ₹38.08 Crore in Sep '24)
- Net Profit: ₹21.56 Crore (compared to ₹25.3 Crore in Sep '24)
Key financial metrics as of April 2025 (annual data):
- Revenue: ₹638 Crores
- Net Profit: ₹92.7 Crores
- Latest PE Ratio: 9.61
- Latest PB Ratio: 1.03
The company holds a unique and significant position in the Indian chemical industry as per Value Research classification, it is a Small Cap company.
- The P/B ratio of Sree Rayalaseema Hi-Strength Hypo Ltd is 1.57 times as on 24-Dec-2024, representing a 39% discount to its peers' median range of 2.58 times.
- The P/E ratio of Sree Rayalaseema Hi-Strength Hypo Ltd is 17.15 times as on 24-Dec-2024, also a 39% discount to its peers' median range of 28.13 times.
The company's 52-week high share price is ₹943.95 and its 52-week low share price is ₹438.95. The stock has shown volatility, with a decrease of 28.16% over the past 6 months and a 13.33% decrease over the last one year.
Sree Rayalaseema Hi-Strength Hypo Ltd maintains strong corporate governance practices. The main management includes T G Shilpa Bharath as Chairman and V Surekha as the Company Secretary. The auditor for Sree Rayalaseema Hi-Strength Hypo Ltd is S T Mohite & Co.
Promoter holding in Sree Rayalaseema Hi-Strength Hypo Ltd has remained stable at 61.84% as of December 2024, consistent with March 2024 figures. This stable promoter holding indicates confidence in the company's future prospects.
The company is almost debt-free, a strong balance sheet position that provides financial flexibility for future expansion and investment opportunities. However, the company has delivered a poor sales growth of -1.53% over the past five years, indicating challenges in revenue expansion that the company is actively addressing through strategic initiatives.
The company's position as the sole Indian manufacturer of calcium hypochlorite provides a significant competitive advantage in the domestic market. With an increasing focus on water treatment and industrial hygiene, particularly post-pandemic, the demand for the company's products is expected to remain stable.
The dividend payout has been low at 5.47% of profits over the last 3 years, suggesting that the company is retaining earnings for reinvestment in business expansion and modernization. Operating in a niche segment of the chemical industry, the company serves critical applications in water treatment, textiles, and agriculture. Its diversified revenue streams from power generation and trading activities provide additional stability to its business model. As infrastructure development and industrial activities continue to grow in India, Sree Rayalaseema Hi-Strength Hypo Ltd is well-positioned to benefit from increased demand for its specialized chemical products.
