ValuePickr Forum

TGV SRAAC erstwhile Sree Rayalseema Alkali

Hi,

I came across this company - Sree Rayalseema Alkaliand seems to be a value pick to me. Anyone tracking?

Views Invited

Thanks & Regards,

Ayush

Apart from the fact that it is trading at 0.6x BV and TTM PE of 4x, what’s noticeable in the business? Is there signs of a turnaround post the degrowth in FY10?

The de-growth in FY 2010 was due to floods and hence plant closure.

Going by the Q1 and upbeat demand, the co may be able to post turnover better than FY 2008.

Also look at the operating profits - they are approx 100 Cr+ while the M Cap is less than 100 Cr.

Regards,

Ayush

This is a caustic soda player going by valuepickr DB cklassification. If you compare key ratios to Industry medians, there seem to be much better players in the industry.

I looked at Aditya Birla Chemicals in same industry TTM PE 4.6x

A takeover candidate now , after the Kanoria Chemicals deal ?

Don’t know about the takeover part…but if one looks at the valuations, the stock is going quite cheap.

Hi,

Promoter T.G.venkatesh ,M.L.A from Kurnool,A.P.Recently got cabinet berth in govt.His companies got very low valuations due to management and the segment which it operates in.

Thats an interesting update. Which political party does he represents?

If he has come back to power, his cos may start doing well.

Thanks & Regards,

Ayush

null

Already in power

Don’t go after politician backed companies.Instead professional management distanced away from politics are always safe.If we look at mukesh and anil ambani the answer will come.

This is Mudar Patherya’s top pick

No dividend history, pref sharesallottedto promoters will be converted by march , Y such a highdepreciation?

Have exited this stock sometimeback but I think their group co Sree Rayalseema Hypo is doing very well and looks quite interesting to me.

Has anyone been tracking this stock?

1- The Anti Dumping Duty on Methylene Chloride should have a profound impact on Sree Rayalaseema’s fortunes.
2- The promoters have issued warrants at 17/share recently.
3- Extremely cheap valuations.
4- Capex just completed. They have set up a Chloride plant in April and as per their press release, this plant should enable them to make 34crs PBT which would be HUGE if true!

Return on capital is average for now but as the price of their end product increases and their utilisation levels rise, this company could look very different next year.

Any views?

S.I.

So it says that they will double the EPS next year?? Looks interesting story…

According to their press release…Yes.

And now we have a situation where the end product price will firm up thanks to this A.D.D.

Anyone tracking sree Rayalseema. I am trying to understand the caustic soda and soda flakes prices and anti dumping impact. Kindly share any information which is available.

Hi…anybody tracking the co…How has the power cost increased by this much? Caustic soda prices too have staiblized it seems

Found this TGV SRAAC EIA Report. Looks like TGV is going to double it’s capacity.
Checked on http://environmentclearance.nic.in/, company has got the clearance for the project in May 2018.

Disclosure: Invested