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Sudarshan Chemical Industries Ltd Stock Analysis

Mid Cap
Evaluated by 1496 users | BSE: 506655 | NSE: SUDARSCHEM |
Dyes & Pigments

Sudarshan Chemical Industries company was incorporated on February 19, 1951 at Pune as a private limited company and converted into a public limited company on December 31, 1974. Sudarshan Chemical Industries is owned by the Rathi group of companies and...

1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Sudarshan Chemical Industries Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
Value Creation Index Colour Code Guide
 Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Capital Employed 10.08%6.93%9.69%10.67%13.1%14.97%12.6%11.03%14.22%12.16%-
Value Creation Index -0.19-0.45-0.22-0.150.050.200.01-0.120.14NA-
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 8008731,1191,2181,4091,4991,6461,6741,7091,8641,864
Y-o-Y Gr. Rt.-9.1%28.2%8.9%15.7%6.4%9.8%1.7%2.1%9.1%-
Adjusted EPS (Rs.) 4.62.665.486.749.9213.5312.1912.319.2419.5520.38
Y-o-Y Gr. Rt.--42.2%106%23%47.2%36.4%-9.9%0.9%56.4%1.6%-
Book Value per Share (Rs.) 27.9929.5331.9437.9345.3555.0563.5682.0186.79107.23107.23
Adjusted Net Profit 31.818.43846.768.793.684.485.1133135141
Net Op. Cash Flow (Rs. Cr.) 51.525.548.311216416314871263165-
Debt to Cash Flow from Ops 5.6317.169.123.852.622.652.925.171.93.72-
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Sudarshan Chemical Industries Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 9.9%5.8%4.3%9.1%
Adjusted EPS 17.4%14.5%17.1%1.6%
Book Value per Share 16.118.81923.6
Share Price 37.6% 21.1% 17.6% 83.6%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity (%) 13.657.3914.4617.4923.8126.9520.5616.8922.7920.1419.01
Operating Profit Margin (%) 10.729.1112.1110.7312.0313.612.7212.7214.5815.0215.6
Net Profit Margin (%) 3.982.113.393.834.876.255.135.087.797.267.57
Debt to Equity 1.52.141.991.651.371.140.980.650.830.830.41
Working Capital Days 219225197202193194195221249256162
Cash Conversion Cycle 11211411010890696173766827
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 39.57%
Institutions 18.06%
Non-Institutions 42.37%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Sudarshan Chemical Industries Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Sudarshan Chemical Industries Ltd is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Sudarshan Chemical Industries Ltd's performance infers:

Sudarshan Chemical Industries Ltd earnings have grown by 14.5%, whereas share price has appreciated 21.1% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Sudarshan Chemical Industries Ltd share prices over the last 10 years. Here is what we found out:

Sudarshan Chemical Industries Ltd share price has appreciated 26.8% annually over the past ten years.

Sudarshan Chemical Industries company was incorporated on February 19, 1951 at Pune as a private limited company and converted into a public limited company on December 31, 1974. Sudarshan Chemical Industries is owned by the Rathi group of companies and accounts for 70% of the Rathi group sales revenue each year. The company makes all its products in-house on its own production plants in Roha and Mahad, in the Maharastra state of India.Its extensive range of

Sudarshan Chemical Industries company was incorporated on February 19, 1951 at Pune as a private limited company and converted into a public limited company on December 31, 1974. Sudarshan Chemical Industries is owned by the Rathi group of companies and accounts for 70% of the Rathi group sales revenue each year. The company makes all its products in-house on its own production plants in Roha and Mahad, in the Maharastra state of India.Its extensive range of products includes organic and inorganic pigments, mica-based effect pigments, chemical intermediates and pesticides.  They have a continuous R&D programme, with technologists working on new and customised solutions.

It was the first chemical company in India to be awarded the ISO 9001 certificate in 1993 and continuously evolve and improve itself throughout to maintain high quality standards at every level of the company. It is also accredited with ISO 14001, ISO 18000 and ISO 17025 international quality standards. In order to improve the customer service, they have implemented many planning tools like SAP and CRM that connect factories, branch offices and depots. Supply chain solutions are currently being implemented to further increase the value of their goods.

Business area of the company

Sudarshan manufactures an extensive range of Organic, Inorganic and Pearlescent pigments and dispersions catering to the Coatings, Plastics, Inks and Cosmetics Industries worldwide. Sudarshan also manufactures agrochemicals.

Products

Sudarshan’s product portfolio includes recognized brands like Sudaperm, Sudafast, Sudacolor, Sumica and Sumicos.

Color product

  • Plastics
  • Industrial coatings
  • Decorative paints
  • Powder castings
  • Liquid inkss
  • Offset inks
    Textile
  • Cosmetics

Effect product

  • Industrial coatings
  • Powder castings
  • Offset inks
  • Textile
  • Cosmetics
  • Architectural coatings
  • Automotive coatings
  • Leather coatings
  • Seed coatings
  • Bead coatings

Awards & Accolades

2017-18

  • India CSR Award CSR community Initiative Sustainable Village Waste Management, Environment
  • ECGC Indian Exporters Excellence Award 2017 under the category ‘Most Socially Responsible Exporter’.
  • Best Employer Brand Innovation in Recruitment
  • Award from the National Safety Council, Maharashtra Chapter
  • Dyestuff Manufacturers Association of India Award for Excellent Performance in the field of Pollution Control, Large Scale
  • Dyestuff Manufacturers Association of India Award for the Second for Excellent Performance in the field of Safety & Hazard control by a Large Scale Unit
  • Dyestuff Manufacturers Association of India Award for Energy Conservation Initiative

2018-19

  • Global CSR Award 2019 in Gold Category for an outstanding achievement in implementing CSR programme for strengthening core business with Social commitment
  • Global Waste Management Award
  • Golden Peacock HR Excellence Award
  • DMAI Award for Energy Conservation

2019-20

  • Appreciation Award By Rotary for CSR activities in Roha
  • Appreciation Award from the Government of Maharashtra by Dy. CM. Ajit Pawar
  • CSR Award from International lions Club 2020
  • Global CSR Award 2020 in Platinum Category - represented case study on Paper Bag Project - Sustainable Livelihood Initiatives for Women
  • CII HR Excellence Award
  • Certified Great Place to Work

Milestones

  • 1951: Established as Sudarshan Chemical Industries Private Limited
  • 1952: Started its first manufacturing facility in Swargate, Pune
  • 1961: Began manufacturing of Organic pigments
  • 1967: Started exporting globally
  • 1968: Built a new plant at Wellesley Road in Pune
  • 1973: Established manufacturing facility at Roha
  • 1976: Got listed on BSE
  • 1989: Collaboration with world leader, DIC, Japan
  • 1993: Became the first Indian chemical company to receive ISO 9001 certificate
  • 1994: Commenced manufacturing plant in Mahad for Pthalos and Effect pigments
  • 1999: Introduced SAP across all its functions
  • 2006: Achieved a net revenue of Rs 400 crore. Established a state-ofthe-art technology R&D centre at Sutarwadi
  • 2007: Established subsidiary Sudarshan Europe BV
  • 2009: Expanded its footprints in the USA, incorporation of Sudarshan North America
  • 2010: Received Sword of Honour from the British Safety Council
  • 2014: Achieved a net revenue of Rs 1,000 crore
  • 2017: Certified as ‘Dream Company to work for’ in chemical sector
  • 2017: Started co-gen plant
  • 2018: Established Sudarshan Mexico
  • 2018: Invested in renewable source of energy such as windmill, solar energy
  • 2018: Became number 4 in Pigment industry
  • 2019: Sudarshan established laboratory in Germany
  • 2020: Established Sudarshan Japan K.K
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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