SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

Check Before You Invest : Sudarshan Chemical Industries Ltd

BSE: 506655 NSE: SUDARSCHEM ISIN: INE659A01023
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Dyes & Pigments

Snapshot

Q.1 Which industry/sub-sector does Sudarshan Chemical Industries Ltd belong to?
Sudarshan Chemical Industries Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Dyes & Pigments segment.
Q.2 Is Sudarshan Chemical Industries Ltd a good quality company?
Sudarshan Chemical Industries Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Sudarshan Chemical Industries Ltd undervalued or overvalued?
Sudarshan Chemical Industries Ltd appears Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings - 29.20
Price to Book 2.27 3.57
Price to Sales 0.92 1.62
EV to EBITDA 15.48 16.70
Q.4 Is Sudarshan Chemical Industries Ltd a good buy now?
Sudarshan Chemical Industries Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Sudarshan Chemical Industries Ltd?
Sudarshan Chemical Industries Ltd revenue growth is 31.8% for FY-2025, which is above its 5-year CAGR of 14.39%, indicating faster growth.

Q.2 Gross Profit margin of Sudarshan Chemical Industries Ltd?
Sudarshan Chemical Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 10.9% for FY-2025, which is below its 5-year median of 11.7%, indicating decreasing margins.

Q.3 Operating Profit Margin of Sudarshan Chemical Industries Ltd?
Sudarshan Chemical Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 11.97% for FY-2025, which is below its 5-year median of 12.67% indicating decreasing margins.

Q.4 Net Profit Margin of Sudarshan Chemical Industries Ltd?
Sudarshan Chemical Industries Ltd Net Profit Margin is 1.8% for FY-2025, is below its 5-year median of 5.91%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 10.9 11.7
Operating Profit Margin (%) 11.97 12.67
Net Profit Margin (%) 1.8 5.91

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Sudarshan Chemical Industries Ltd?
Sudarshan Chemical Industries Ltd Return on Asset is 0.94%, which is below its 5-year historical median of 5.15%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Sudarshan Chemical Industries Ltd?
Sudarshan Chemical Industries Ltd Return on capital employed is 4.21% for FY-2025, which is below its 5-year historical median of 12.87%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 13.5%, indicating value preservation.

Q.7 Return on Equity (ROE) of Sudarshan Chemical Industries Ltd?
Sudarshan Chemical Industries Ltd Return on equity is 2.64% for FY-2025, which is below its 5-year historical median of 16.52%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Sudarshan Chemical Industries Ltd?
Sudarshan Chemical Industries Ltd Cash conversion cycle is 172 days, above its 5-year historical median of 70 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.52 0.87
ROE (%) 2.64 16.52
ROCE (%) 4.21 12.87
Cash Conversion Cycle 172 days 70 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Sudarshan Chemical Industries Ltd?
Sudarshan Chemical Industries Ltd Debt-to-Equity ratio is 0.61, which is above the industry average of 0.23, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Sudarshan Chemical Industries Ltd?
Sudarshan Chemical Industries Ltd Debt to cash flow from operations is 56.29, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Sudarshan Chemical Industries Ltd?

Q.1 Promoter shareholding and pledge status of Sudarshan Chemical Industries Ltd?
Promoters hold 8.19% of the Sudarshan Chemical Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Sudarshan Chemical Industries Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Sudarshan Chemical Industries Ltd vs industry peers?
Sudarshan Chemical Industries Ltd revenue CAGR is 14.39%, compared to the industry median CAGR of 5.57%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 31.8 5.6
Gross Profit Growth (%) 23.2 3.5
Operating Profit Growth (%) 20.8 4.7
Net Profit Growth (%) -83.2 0.8
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.52 0.91
ROE (%) 2.64 7.16
ROCE (%) 4.21 9.19
Cash Conversion Cycle (days) 172.47 76

Valuation & price assessment

Q.1 Stock return of Sudarshan Chemical Industries Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 24% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
24% 7.6% 36.6% -8.6%
Q.2 Valuation ratios of Sudarshan Chemical Industries Ltd vs historical?
The current P/E ratio of 0 is lower than its historical median of 29.20, indicating that the stock is trading below its historical average valuation.
Q.3 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 - 29.20 18.95
Price to Book 2.27 3.57 1.45
Price to Sales 0.92 1.62 1.23
EV to EBITDA 15.48 16.70 11.35

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through: