Check Before You Invest : Sudarshan Colorants India Ltd

Snapshot

Q.1 Which industry/sub-sector does Sudarshan Colorants India Ltd belong to?

Sudarshan Colorants India Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.

Q.2 Is Sudarshan Colorants India Ltd a good quality company?

Sudarshan Colorants India Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Sudarshan Colorants India Ltd undervalued or overvalued?

Sudarshan Colorants India Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Sudarshan Colorants India Ltd a good buy now?

Sudarshan Colorants India Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Sudarshan Colorants India Ltd?

Sudarshan Colorants India Ltd revenue growth is 4.4% for FY-2025, which is above its 5-year CAGR of -5.48%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Sudarshan Colorants India Ltd?

Sudarshan Colorants India Ltd Return on capital employed is 14.21% for FY-2025, which is above its 5-year historical median of 12.86%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Sudarshan Colorants India Ltd?

Sudarshan Colorants India Ltd Return on Asset is 6.94%, which is in line with its 5-year historical median of 6.74%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Sudarshan Colorants India Ltd?

Sudarshan Colorants India Ltd Return on equity is 10.33% for FY-2025, which is in line with its 5-year historical median of 10.33%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Sudarshan Colorants India Ltd?

Sudarshan Colorants India Ltd Cash conversion cycle is 49 days, below its 5-year historical median of 53 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.11	1.14
ROE	10.33	10.33
ROCE	14.21	12.86
Cash Conversion Cycle	49 days	53 days

Q.6 Gross Profit margin of Sudarshan Colorants India Ltd?

Sudarshan Colorants India Ltd Gross profit margin which is the profit after deduction of direct costs, is 11.9% for FY-2025, which is above its 5-year median of 9.9%, indicating increasing margins.

Q.7 Operating Profit Margin of Sudarshan Colorants India Ltd?

Sudarshan Colorants India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 9.91% for FY-2025, which is above its 5-year median of 9.12% indicating increasing margins.

Q.8 Net Profit Margin of Sudarshan Colorants India Ltd?

Sudarshan Colorants India Ltd Net Profit Margin is 6.24% for FY-2025, is above with its 5-year median of 5.2%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	11.9	9.9
Operating Profit Margin	9.91	9.12
Net Profit Margin	6.24	5.2

Q.9 Debt to Equity ratio of Sudarshan Colorants India Ltd?

Sudarshan Colorants India Ltd Debt-to-Equity ratio is 0.00, which is lower with the industry average of 0.26, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Sudarshan Colorants India Ltd?

Sudarshan Colorants India Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Sudarshan Colorants India Ltd?

Promoters hold 70.26% of the Sudarshan Colorants India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Sudarshan Colorants India Ltd vs industry peers?

Sudarshan Colorants India Ltd revenue CAGR is -5.48%, compared to the industry median CAGR of 9.62%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	4.4	9.6
Gross Profit Growth	24.1	14.3
Operating Profit Growth	13.9	12
Net Profit Growth	24.4	12.7

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.11	0.97
ROE	10.33	10.68
ROCE	14.21	13.26
Cash Conversion Cycle (days)	49.36	63

Valuation & price assessment

Q.1 Stock return of Sudarshan Colorants India Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of -6.1% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-6.1%	-4.2%	2.4%	-40.8%

Q.3 Valuation ratios of Sudarshan Colorants India Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	19.11	27.54	27.93
Price to Book	1.45	2.51	2.22
Price to Sales	1.02	1.37	1.93
EV to EBITDA	6.02	12.82	14.18

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