Sumitomo Chemical India Ltd - Stock Valuation and Financial Performance

BSE: 542920 | NSE: SUMICHEM | Pesticides & Agrochemicals | Small Cap

Sumitomo Chemical India Share Price

344 -2.00 -0.58%
as on 28-Mar'24 14:28

DeciZen - make an informed investing decision on Sumitomo Chemical India

Overall Rating
Bole Toh

1. Quality

2. Valuation

Somewhat Undervalued

3. Price Trend

Sumitomo Chemical India stock performance -

mw4me loader
P/E Ratio (SA):
51.88
Market Cap:
17,270.4 Cr.
52-wk low:
336.4
52-wk high:
454.6

Is Sumitomo Chemical India Ltd an attractive stock to invest in?

1. Is Sumitomo Chemical India Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Sumitomo Chemical India Ltd is a good quality company.

2. Is Sumitomo Chemical India Ltd undervalued or overvalued?

The key valuation ratios of Sumitomo Chemical India Ltd's currently when compared to its past seem to suggest it is in the Somewhat Undervalued zone.

3. Is Sumitomo Chemical India Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Sumitomo Chemical India Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Sumitomo Chemical India:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

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.
Sumitomo Chemical India 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'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 19.5%16.9%24.7%12.7%17.9%17.9%20.7%25.4%25.2%23%-
Value Creation
Index
0.50.30.8-0.10.30.30.50.90.91.0-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 6517067657991,9112,2232,4232,6433,0603,5112,820
Sales YoY Gr.-8.4%8.4%4.3%139.3%16.3%9%9.1%15.8%14.7%-
Adj EPS 1.51.52.82.45.36.44.66.98.69.86.7
YoY Gr.-4.8%81.1%-14.8%126.3%20.2%-28.5%49.5%25.5%14.2%-
BVPS (₹) 8.49.912.726.72629.524.230.638.647.751.7
Adj Net
Profit
34.135.764.664.7147176229343430491333
Cash Flow from Ops. 19.53.952.5-20.948.874.8222425223389-
Debt/CF from Ops. 00000.20.30000-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 20.6%12.9%13.2%14.7%
Adj EPS 23.6%13%28.9%14.2%
BVPS21.2%12.9%25.3%23.7%
Share Price - - 8% -16.1%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
1916.724.512.617.617.920.42524.922.813.4
Op. Profit
Mgn %
7.58.211.713.211.613.31418.619.71914.7
Net Profit
Mgn %
5.25.18.48.17.77.99.513141411.8
Debt to
Equity
0000000000-
Working Cap
Days
174177182211172206208205205206170
Cash Conv.
Cycle
506568102768993939697114

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 13.15%

Net Profit is growing at healthy rate in last 3 years 28.90%

Return on Equity has declined versus last 3 years average to 13.40%

Sales growth is not so good in last 4 quarters at -19.01%

Latest Financials - Sumitomo Chemical India Ltd.

Standalone Consolidated
TTM EPS (₹) 6.7 6.7
TTM Sales (₹ Cr.) 2,820 2,821
BVPS (₹.) 51.7 51.7
Reserves (₹ Cr.) 2,080 2,082
P/BV 6.70 6.69
PE 51.88 52.02
From the Market
52 Week Low / High (₹) 336.40 / 454.55
All Time Low / High (₹) 152.50 / 540.65
Market Cap (₹ Cr.) 17,270
Equity (₹ Cr.) 499.2
Face Value (₹) 10
Industry PE 33.5

Management X-Ray of Sumitomo Chemical India:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Sumitomo Chemical India

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales6517067657991,9112,2232,4232,6433,0603,511
Operating Expenses 6046496766951,6911,9332,0882,1552,4582,849
Manufacturing Costs7333712247262228256282303
Material Costs4824854765311,0951,2851,4681,4851,7252,069
Employee Cost 30374259147157178193201217
Other Costs 849412293204229214221249260
Operating Profit 485789104219290335488603662
Operating Profit Margin (%) 7.3%8.0%11.7%13.0%11.5%13.0%13.8%18.4%19.7%18.9%
Other Income 38261131811193652
Interest 2111557786
Depreciation 6677242841474552
Exceptional Items 00000-7-31000
Profit Before Tax 4358107106221258267453586655
Tax 10234243769162108152152
Profit After Tax 33356564145167206345434503
PAT Margin (%) 5.1%4.9%8.4%8.0%7.6%7.5%8.5%13.1%14.2%14.3%
Adjusted EPS (₹)1.41.52.82.35.36.14.16.98.710.1
Dividend Payout Ratio (%)0%0%0%0%0%38%13%12%12%12%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 1972312967337158111,2091,5281,9242,380
Share Capital 233233233275275275499499499499
Reserves -36-2634584405367101,0291,4251,881
Minority Interest0000000000
Debt000010200000
Long Term Debt0000000000
Short Term Debt000010200000
Trade Payables177152183167528480491590520492
Others Liabilities 637197120392535392539565497
Total Liabilities 4364545761,0201,6441,8462,0912,6583,0093,369

Fixed Assets

Gross Block10211611759306345425461583671
Accumulated Depreciation55656573966106152193241
Net Fixed Assets47515253267279319309390430
CWIP 03179810143571
Investments 0003772187291357239
Inventories165188235278605680587754938889
Trade Receivables156153183220551669848846843946
Cash Equivalents 2925723866408323179303
Others Assets39343348145169157213368491
Total Assets 4364545761,0201,6441,8462,0912,6583,0093,369

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 20452-214975222424223389
PBT 4358107106221258267453586655
Adjustment 101081153945543838
Changes in Working Capital -18-43-24-102-94-135-926-258-136
Tax Paid -15-21-38-35-83-87-81-108-143-168
Cash Flow From Investing Activity 8-8-5-289-40-35-118-282-281-327
Capex 8-10-9-12-43-39-38-43-112-120
Net Investments 000-28200-84-250-184-222
Others 0234344101514
Cash Flow From Financing Activity -1002767-65-61-47-63-73
Net Proceeds from Shares 000277000000
Net Proceeds from Borrowing 0000000000
Interest Paid -100-1-3-4-2-1-1-2
Dividend Paid 00000-59-22-28-40-50
Others 000010-3-38-18-21-21
Net Cash Flow 27-447-3416-264395-120-10
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)18.4216.2724.512.3920.0421.8920.3625.2425.1323.39
ROCE (%)24.6727.4240.8320.926.8826.2124.2433.6234.430.74
Asset Turnover Ratio1.731.711.611.081.471.431.391.281.241.24
PAT to CFO Conversion(x)0.610.110.8-0.330.340.451.081.230.510.77
Working Capital Days
Receivable Days7574748572891011028782
Inventory Days798593108829485818884
Payable Days12812412912011614312113311789

Sumitomo Chemical India Ltd Stock News

Sumitomo Chemical India Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Sumitomo Chemical India on 28-Mar-2024 14:28 is ₹344.0.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 28-Mar-2024 14:28 the market cap of Sumitomo Chemical India stood at ₹17,270.4.
The latest P/E ratio of Sumitomo Chemical India as of 28-Mar-2024 14:28 is 51.88.
The latest P/B ratio of Sumitomo Chemical India as of 28-Mar-2024 14:28 is 6.70.
The 52-week high of Sumitomo Chemical India is ₹454.6 and the 52-week low is ₹336.4.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Sumitomo Chemical India is ₹2,820 ( Cr.) .

About Sumitomo Chemical India Ltd

Sumitomo Chemical India (SCIL) manufactures, imports and markets products for Crop Protection, Grain Fumigation, Rodent Control, Bio Pesticides, Environmental Health, Professional Pest control and Feed Additives for use in India. SCIL has also marked its presence in Africa and several other geographies of the world. The product range comprises of conventional chemistry sourced from parent company, Sumitomo Chemical Company and biological products sourced from USA based subsidiary, Valent Biosciences LLC, a leader in producing a range of naturally occurring, environmentally compatible pesticides and plant growth regulators, for over 40 years. It also produce many technical grade pesticides in its state-of-the-art manufacturing units with indigenous R&D facility. Committed to consistent quality, it provide a unique offering of new generation as well as conventional and biological products to customers.

Parent company

Sumitomo Chemical Company (SCC), the parent company of Sumitomo Chemical India was established in 1913 to manufacture fertilizers from sulphur dioxide emitted from smelting operations at the Besshi copper mine in Niihama, Ehime Prefecture, with the aim of solving environmental problems caused by the emissions. The mine was owned by Sumitomo a company which dates back to the 16th Century. SCC offers a diverse range of products globally in the fields of petrochemicals, energy and functional materials, IT related chemicals and materials, health and crop sciences products and pharmaceuticals. The SCC parentage has also brought with it, a consistent commitment for quality and customers.

Products and Services

Domestic business

Sumitomo Chemical India is primarily engaged in manufacturing and sales of speciality and generic products under Agro Solutions Division (ASD), Environmental Health Division (END) and Animal Nutrition Division (AND). It has Strong R&D capabilities with a dedicated pool of engineers and scientists capable of creating new combinations and developing efficient processes, that impact millions of consumers. It is equipped with a robust distribution network and dependable logistics which cater to the consumer needs. Its Diversified product portfolio and unmatched product quality, makes it formidable players in the field of crop protection.

Crop protection

  • SCIL Specialty
  • SCIL ECC
  • SCIL Basic

Biological

The Biologicals segment of crop protection is continuously growing in Sumitomo Chemical India. Biologicals are derived from natural principles such as plants, microorganisms and minerals. These are highly environment safe crop solutions developed by the highly innovative Research & Development team of Sumitomo. SCIL biologicals result in effective alternative against conventional pesticides.

Plant Growth Regulators

Plant Growth Regulators (PGRs), are molecules that influence the development of plants and are generally active at very low concentrations. Plant growth and nutrition substances have a key role in different physiological processes related to development of crops. Changes in the levels of plant hormones and nutrients due to stress can adversely affect crop growth. Sumitomo Chemical India, has a range of plant growth and nutrition products that help farmers improve crop yield.

Fumigants & Rodenticides

While fulfilling the food demand of an increasing population remains a major global concern, more than one-third of food is lost or wasted in postharvest operations. Sumitomo Chemical India had designed a range of effective fumigants and rodenticides to combat this problem.

  • CELPHOS
  • FUMIRAT
  • COMMANDO
  • TOJOPHOS

Household Pesticides

  • Professional Pest Control products
  • Vector/Public Health products
  • Customer Solutions products

Animal Nutrition

The company manufacturers and suppliers of Methionine, which is used as feed additive. Methionine is one of the essential amino acids that cannot be synthesized in the animal body. Methionine often tends to remain at an insufficient level in livestock feeds mainly consisting of plant material.

Milestones

  • 2000: Two companies were launched this year. Sumitomo Chemical India Private Limited (SCIPL), a sales company, and Sumitomo Chemical Enviro Agro India (SCEAI), a household insecticide manufacturing company.
  • 2001: Start of the Household Insecticide business.
  • 2002: Start of the Crop Protection business and initiation of agrochemical manufacturing at SCEAI.
  • 2007: The Delhi office of SCIPL was established.
  • 2011: Start of the animal nutrition business.
  • 2011: Integration of SCIPL, SCEAI and New Chemi Inc.
  • 2016: Acquisition of Excel Crop Care
  • 2018: Merger with Excel Crop Care Limited.
  • 2018: SCIPL changed to Sumitomo Chemical India Limited (SCIL), post-merger.
  • 2019: SCIL was listed on the Bombay Stock Exchange.
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