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Last Updated on: 04 March, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Sudarshan Chemical Industries Ltd

About the Company - Sudarshan Chemical Industries Ltd

Sudarshan Chemical Industries Ltd. is a Public Limited Listed company incorporated on 19/02/1951 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L24119PN1951PLC008409 and registration number is 008409. Currently Company is involved in the business activities of Manufacture of dyes and pigments from any source in basic form or as concentrate. Company’s Total Operating Revenue is Rs. 1918.91 Cr. and Equity Capital is Rs. 13.85 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Dyes & Pigments7th Floor, Eleven West Panchshil, Survey No. 25, Near PAN Card Club Road, Pune Maharashtra 411045grievance.redressal@sudarshan.com
http://www.sudarshan.com
Management
NamePosition Held
Mr. Pradeep R RathiChairman
Mr. Rajesh B RathiManaging Director
Mr. Ashish VijWhole Time Director
Mr. Anuj N RathiNon Exe.Non Ind.Director
Mr. Sanjay K AsherInd. Non-Executive Director
Mrs. Rathi F ForbesInd. Non-Executive Director
Mr. Dara N DamaniaInd. Non-Executive Director
Mr. Subramanian PadmanabhanInd. Non-Executive Director
Mr. Naresh T RaisinghaniInd. Non-Executive Director
Mrs. Shubhalakshmi A PanseInd. Non-Executive Director
Dr. Deepak ParikhInd. Non-Executive Director

Sudarshan Chemical Industries Ltd. Share Price Update

Share PriceValue
Today₹519.00
Previous Day₹520.85

Basic Stock Data of Sudarshan Chemical Industries Ltd

Market Cap 4,077 Cr.
Current Price 589
High / Low613/363
Stock P/E46.5
Book Value 159
Dividend Yield0.00 %
ROCE6.27 %
ROE5.40 %
Face Value 2.00

Data Source: screener.in

Competitors of Sudarshan Chemical Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
AksharChem (India) Ltd 280 Cr. 348366/201 3300.14 %0.86 %0.34 % 10.0
Bodal Chemicals Ltd 1,001 Cr. 79.694.4/55.0138 85.30.12 %5.08 %3.50 % 2.00
Prolife Industries Ltd 101 Cr. 247338/18912.0 91.20.12 %30.0 %23.9 % 10.0
Vidhi Specialty Food Ingredients Ltd 2,118 Cr. 424473/31960.7 53.40.24 %17.6 %16.2 % 1.00
Amal Ltd 449 Cr. 363436/170 54.60.00 %12.1 %31.1 % 10.0
Industry Average789.80 Cr292.3242.14122.900.12%13.13%15.01%6.60

Sudarshan Chemical Industries Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales429506577474498602627554528528691608601
Expenses361427489412445528541513486486606538535
Operating Profit68808762537486414342857066
OPM %16%16%15%13%11%12%14%7%8%8%12%11%11%
Other Income232112211123196
Interest55454556911151010
Depreciation22222121222225262731313535
Profit before tax4256643728495810814134426
Tax %29%30%17%29%18%25%22%32%43%17%20%22%32%
Net Profit303953262336457513326718
EPS in Rs4.385.667.723.783.295.266.451.020.660.084.7038.562.58

Sudarshan Chemical Industries Ltd Quarterly Chart

Sudarshan Chemical Industries Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales7918631,1061,2051,4011,2821,3291,5931,7081,8642,2012,3022,428
Expenses7067849741,0751,2321,0931,1391,3861,4601,5741,9232,0882,166
Operating Profit8680133131170189191207248290278213262
OPM %11%9%12%11%12%15%14%13%15%16%13%9%11%
Other Income472231425158122755327
Interest24344341373025191620234446
Depreciation1826374248495866748789114131
Profit before tax482655729913612320318019017160412
Tax %29%15%37%24%29%25%31%33%20%26%24%25%
Net Profit34223554701018513514514113045318
EPS in Rs4.863.195.087.8610.1014.6412.2419.5220.8820.3818.776.4745.92
Dividend Payout %26%39%30%22%30%24%29%31%30%29%27%23%

Sudarshan Chemical Industries Ltd Profit & Loss Yearly Chart

Sudarshan Chemical Industries Ltd Growth

Compounded Sales Growth
10 Years:10%
5 Years:12%
3 Years:10%
TTM:10%
Compounded Profit Growth
10 Years:7%
5 Years:-12%
3 Years:-30%
TTM:54%
Stock Price CAGR
10 Years:29%
5 Years:12%
3 Years:1%
1 Year:55%
Return on Equity
10 Years:18%
5 Years:16%
3 Years:14%
Last Year:5%

Sudarshan Chemical Industries Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital77714141414141414141414
Reserves2372472642493003674265545877308198141,089
Borrowings290437440433430433431367501618823829638
Other Liabilities185189217317346379433424522638705725696
Total Liabilities7198809291,0121,0901,1931,3041,3581,6242,0002,3612,3832,436
Fixed Assets2293193273333584524754656276158321,1261,095
CWIP172378158624482782854447
Investments000000001122146
Other Assets4735385946717167338228699481,1051,2431,2101,148
Total Assets7198809291,0121,0901,1931,3041,3581,6242,0002,3612,3832,436

Sudarshan Chemical Industries Ltd Reserves and Borrowings Chart

Sudarshan Chemical Industries Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 52254811216416314871263165180287
Cash from Investing Activity -87-120-28-61-83-135-87-27-220-266-308-189
Cash from Financing Activity 59101-48-43-81-38-62-48-39108138-103
Net Cash Flow237-278-0-10-2-3389-5

Sudarshan Chemical Industries Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days898985969298927978958377
Inventory Days159168144125113134131119154142163132
Days Payable877763949613912694139152150136
Cash Conversion Cycle162180166127109939610592859673
Working Capital Days99110102938671929473899281
ROCE %15%10%14%16%19%22%18%17%18%17%13%6%

Sudarshan Chemical Industries Ltd Financial Efficiency Indicators Chart

Sudarshan Chemical Industries Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters40.03%39.57%35.73%35.73%35.82%35.82%35.82%35.82%35.82%35.82%35.82%35.82%
FIIs9.37%8.80%9.38%8.49%7.93%6.03%4.16%2.81%3.12%3.49%4.65%4.22%
DIIs9.00%9.26%9.78%10.92%11.54%13.01%14.18%14.33%14.18%14.29%13.67%13.58%
Public41.59%42.37%45.11%44.86%44.71%45.14%45.84%47.05%46.87%46.41%45.86%46.37%
No. of Shareholders44,84552,94271,12173,80271,24074,04975,76975,94672,94667,78968,05268,301

Sudarshan Chemical Industries Ltd Shareholding Pattern Chart

No. of Sudarshan Chemical Industries Ltd Shareholders

Sudarshan Chemical Industries Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Axis Small Cap Fund24406880.72133.99
Mirae Asset Midcap Fund17883330.7198.18
ICICI Prudential Smallcap Fund15401401.1984.55
Mirae Asset Multicap Fund2529970.6313.89
Axis Multi Asset Allocation Fund1953180.8710.72
Axis Children's Gift Fund Compulsory Lock-in - Regular Plan618360.423.39
Axis Children's Gift Fund No Lock-in - Regular Plan618360.423.39
Motilal Oswal Nifty Microcap 250 Index Fund499220.442.74
LIC MF Small Cap Fund9000.030.05

Sudarshan Chemical Industries Ltd ROCE Trend

Sudarshan Chemical Industries Ltd EPS Trend

Sudarshan Chemical Industries Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)6.5018.8020.4020.8819.52
Diluted EPS (Rs.)6.5018.7020.4020.8819.52
Cash EPS (Rs.)22.9731.6732.8831.5028.89
Book Value[Excl.RevalReserv]/Share (Rs.)119.64120.36107.4186.7982.01
Book Value[Incl.RevalReserv]/Share (Rs.)119.64120.36107.4186.7982.01
Revenue From Operations / Share (Rs.)332.50317.92269.28246.76213.29
PBDIT / Share (Rs.)31.1240.4242.5836.2631.27
PBIT / Share (Rs.)14.6227.5330.0825.6421.90
PBT / Share (Rs.)8.6324.7227.5026.0630.15
Net Profit / Share (Rs.)6.4718.7720.3820.8819.52
NP After MI And SOA / Share (Rs.)6.4718.7720.3820.8819.52
PBDIT Margin (%)9.3512.7115.8114.6914.66
PBIT Margin (%)4.398.6511.1710.3910.26
PBT Margin (%)2.597.7710.2110.5614.13
Net Profit Margin (%)1.945.907.568.469.14
NP After MI And SOA Margin (%)1.945.907.568.469.14
Return on Networth / Equity (%)5.4015.5918.9724.0523.79
Return on Capital Employeed (%)7.2314.5918.2019.8220.12
Return On Assets (%)1.875.487.048.869.93
Long Term Debt / Equity (X)0.540.440.410.370.19
Total Debt / Equity (X)0.980.980.650.750.53
Asset Turnover Ratio (%)0.870.900.961.041.11
Current Ratio (X)1.171.131.201.181.38
Quick Ratio (X)0.670.600.720.610.87
Inventory Turnover Ratio (X)2.482.822.642.913.44
Dividend Payout Ratio (NP) (%)77.3131.950.0058.915.12
Dividend Payout Ratio (CP) (%)21.7718.940.0039.053.46
Earning Retention Ratio (%)22.6968.050.0041.0994.88
Cash Earning Retention Ratio (%)78.2381.060.0060.9596.54
Interest Coverage Ratio (X)5.1914.4116.4917.6414.27
Interest Coverage Ratio (Post Tax) (X)2.087.698.909.995.45
Enterprise Value (Cr.)3488.904384.534055.413025.302682.84
EV / Net Operating Revenue (X)1.521.992.181.771.82
EV / EBITDA (X)16.1915.6713.7612.0512.39
MarketCap / Net Operating Revenue (X)1.171.641.931.521.62
Retention Ratios (%)22.6868.040.0041.0894.87
Price / BV (X)3.264.324.834.314.21
Price / Net Operating Revenue (X)1.171.641.931.521.62
EarningsYield0.010.030.030.050.05

Sudarshan Chemical Industries Ltd Profitability Ratios (%)

Sudarshan Chemical Industries Ltd Liquidity Ratios

Sudarshan Chemical Industries Ltd Liquidity Ratios (%)

Sudarshan Chemical Industries Ltd Interest Coverage Ratios (X)

Sudarshan Chemical Industries Ltd Valuation Ratios

Fair Value / Intrinsic Value of Sudarshan Chemical Industries Ltd

Fair Value: ₹407.23

The stock is overvalued by 30.86% compared to the current price ₹589

*Investments are subject to market risks

Strength and Weakness of Sudarshan Chemical Industries Ltd

StrengthWeakness
  1. The stock has a high average ROCE of 15.42%, which is a positive sign.
  2. The company has higher reserves (514.08 cr) compared to borrowings (513.08 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (128.31 cr) and profit (136.54 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 23.95 and average Dividend Yield of 8.97%.
  2. The stock has a high average Working Capital Days of 90.17, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 115.33, which may not be favorable.

Should I Buy Sudarshan Chemical Industries Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Sudarshan Chemical Industries Ltd:
    1. Net Profit Margin: 1.94%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 7.23% (Industry Average ROCE: 10.22%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. Interest Coverage Ratio (Post Tax): 2.08
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    4. Quick Ratio: 0.67
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    5. ✗ Stock P/E: 46.5 (Industry average Stock P/E: 41.44)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    6. ✓ Total Debt / Equity: 0.98
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Sudarshan Chemical Industries Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE