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Sree Rayalaseema Hi-Strength Hypo (BOM:532842) GF Value Rank : 9 (As of May. 18, 2024)


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What is Sree Rayalaseema Hi-Strength Hypo GF Value Rank?

Sree Rayalaseema Hi-Strength Hypo has the GF Value Rank of 9.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.


Competitive Comparison of Sree Rayalaseema Hi-Strength Hypo's GF Value Rank

For the Chemicals subindustry, Sree Rayalaseema Hi-Strength Hypo's GF Value Rank, along with its competitors' market caps and GF Value Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Sree Rayalaseema Hi-Strength Hypo's GF Value Rank Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Sree Rayalaseema Hi-Strength Hypo's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Sree Rayalaseema Hi-Strength Hypo's GF Value Rank falls into.



Sree Rayalaseema Hi-Strength Hypo GF Value Rank Related Terms

Thank you for viewing the detailed overview of Sree Rayalaseema Hi-Strength Hypo's GF Value Rank provided by GuruFocus.com. Please click on the following links to see related term pages.


Sree Rayalaseema Hi-Strength Hypo (BOM:532842) Business Description

Traded in Other Exchanges
Address
216, K.J.S. Complex, Bhagya Nagar, Kurnool, AP, IND, 518004
Sree Rayalaseema Hi-Strength Hypo Ltd is an India based company engaged in the manufacture of inorganic chemicals and the generation of power through wind and thermal. The company has two reportable segments: Chemical manufacturing and Power Generation. The company's product includes Sulphuric acid, Chlorosulphonic acid, Chloramine, oleum, Hydrochloric acid, Monochloro acetic acid, Sodium dichloroisocyanyurate, Hydrogen gas, Aluminium sulphate, Stable bleaching powder, Sodium hydride, Sodium methoxide powder, Sodium methoxide solution and Water treatment chemicals.

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