Equity Watch

SREE RAYALASEEMA ALKALIES & ALLIED CHEMICALS LTD is now set on fast forward track

SREE RAYALASEEMA ALKALIES & ALLIED CHEMICALS LTD is the flagship company of the TGV Group .It is the leading producer of Chlor-Alkali products and also manufactures Castor Derivatives and Fatty Acids.

For last  year inspite of the market going up , the share price of the company has remained subdued because IFCI which was holding 16.5% of company’s Rs 78 crore equity or 129 lac shares as on 1st April 2014 was seller at every rise in share price.NOW that IFCI has completely exited the company and 16.5 % equity has changed hands and well absorbed by retail investor and corporate bodies, the share price is set to rise .

BV at end of 31st March 2015 is expected to be Rs. 35 and top line close to Rs. 800 crore , with EPS of Rs. 4..

Financial Results
View in (Million) Prior Period
(in Cr.) Dec-14 Sep-14 Jun-14 Mar-14 Dec-13 FY 13-14
Income Statement
Revenue 192.28 211.96 183.90 192.15 194.60 769.02
Other Income 1.11 0.87 0.88 0.93 0.81 4.01
Total Income 193.39 212.83 184.78 193.08 195.41 773.03
Expenditure -169.77 -184.84 -157.23 -183.45 -172.59 -698.97
Interest -7.36 -8.89 -8.09 -9.75 -9.00 -34.21
PBDT 16.26 19.10 19.46 -0.12 13.82 39.85
Depreciation -9.24 -9.02 -9.02 -9.06 -8.87 -35.53
PBT 7.02 10.08 10.44 -9.18 4.95 4.32
Tax -0.33 -4.24 -1.10 1.99 -0.63 0.45
Net Profit 6.69 5.84 9.34 -7.19 4.32 4.77
Equity 78.72 78.72 78.72 74.78 74.78 74.78
EPS 0.85 0.74 1.19 -0.96 1.61 0.64
CEPS 2.02 1.89 2.33 0.25 1.76 5.39
OPM % 12.28 13.21 14.98 5.01 11.73 9.63
NPM % 3.48 2.76 5.08 -3.74 2.22 0.62
Detailed Detailed Detailed Detailed Detailed Detailed
Segment Segment Segment Segment Segment Segment

Buy at CMP of Rs. 11-12 is recommended for a long term HOLD..

Caveat : I HOLD

This report has been prepared solely for information purposes and the information contained herein may not be deemed to be an investment advice. Such information is impersonal and not tailored to the investment needs of any specific person. The information contained herein is not a complete analysis of every material fact representing any company, industry or security. The views expressed may change. While the information contained herein has been obtained from sources believed to be reliable, no responsibility (or liability) is accepted for the accuracy of its contents. Investors are advised to satisfy themselves before making any investments and should consult with and rely upon their own advisors whether and how to use such information in making any investment decision. Neither the author nor his firm accepts any liability arising out of use of the above information

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