Sudarshan Chemical Industries Ltd. share price forecast
The 7 reports from 6 analysts offering long term price targets
for Sudarshan Chemical Industries Ltd. have an average target of 565.40. The consensus estimate
represents an upside of 12.07%
from the last price of 504.50.
Incorporated in 1952, Sudarshan chemicals established itself as largest pigment producer in India (~35% market share) and the fourth-largest producer in the world. At the beginning it manufactured only inorganic pigments however gradually, expanded its product basket to organic, inorganic and effect pigments, which cover classical azo pigments, specialized azo pigments, high-performance pigments, pearlescent pigments, pthalos and pigment dispersions. Company's products offered under the brands - Sudaperm, Sudafast, Sudacolor, Sumica and Sumicos are sold to...
Operating revenue in coming years is expected to show a marginal growth despite impact of pandemic, owing to healthy demand recovery seen from August onwards aided by higher exports as well as buoyant domestic demand. Q2 FY21 domestic business is up 70% as compared to Q1 FY21 which is reflective of the broader economy in India now coming back to normal. Further, company seeing good traction across the portfolio with coating, plastics and inks particularly doing well. Besides, global market position is expected to improve further...
Two major global players shifting away from the pigment business could act as a tailwind for Indian pigment manufacturers. We believe SCIL is in a sweet spot to seize this opportunity by offering products similar to those of global players. We initiate coverage on the stock with a BUY recommendation. Our DCF-based target price of INR 550/sh (WACC of 10% and terminal growth rate of 3%) implies an upside of 21.5% from the current level (implied PE of 24x). For the period over August-16 to November-20, the stock of Sudarshan Chemical Industries Ltd (SCIL) was merely up by 10%, despite EBITDA expanding at a 10% CAGR, and PAT doubling at a 19% CAGR. This is after considering the 48% stock rally from its March-20 lows until November. SCIL plans to become the third-largest pigment manufacturer globally by developing R&D; capabilities, operational efficacy, and expanding to new geographies. Global scale is the key to success in the pigment business.
Sudarshan Chemical Industries Limited (SCIL) reported better-than-expected recovery in revenue at Rs. 429 crore (up 1% y-o-y versus our expectation of 4.9% y-o-y drop), led by better performance in the domestic business. EBITDA margin was in-line at 15.4% (up 75 bps y-o-y). Strong recovery was seen in August-September in the domestic business (up 70% q-o-q) across...
Q2 results were better than I-direct estimates on all fronts. The company's operations and demand from end users are reverting to normal as the economy opens up. Despite a challenging year, Sudarshan has reiterated its growth capex plan of | 585 crore (though delayed amid Covid), which shows its strong visibility and commitment towards future growth. Its strong track record, with favourable macro factors and strong domestic demand are key catalysts for it. Margins are also likely to improve due to backward integration, change in product mix towards margin accretive products. We...
Sudarshan Chemical Industries Ltd. (Sudarshan) reported standalone Q4FY18 sales of INR 384 cr (INR 405 cr inclusive of discontinued operations of agrochemicals and its subsidiary Prescient Colors Ltd.
Sudarshan Chemical Industries Limited (Sudarshan) Q3FY18: Sudarshan reported results above our estimates with robust sales pigment growth in both the domestic and export markets while margins...
Share prices of Sudarshan Chemical Industries Limited (Sudarshan) have corrected significantly from its initial run up since our initiation of the stock in late July 2016.
Sudarshan Chemical Industries Ltd. (Sudarshan) reported standalone Q2FY17 sales at INR 339 cr, 7% below our estimates but up 5% YoY. EBITDA and PAT were lower than our estimates by ~19% and ~15%..
Sudarshan is a leading color & effect pigment manufacturer with experience of over 60 years and market share of more than 30%. Sudarshan started manufacturing pigments in 1952 with a handful of inorganic pigments and has since flourished with a breadth of products that cover classical pigments,...
